NeoPharm Investigators Present Preliminary LErafAON-ETU Phase I Data at AACR-NCI-EORTC International Conference.

WAUKEGAN, Ill. -- -- Initial Clinical Proof of Concept of Cationic Cardiolipin NeoPhectin(TM) Technology

NeoPharm, Inc. (Nasdaq:NEOL) today announced the presentation of preliminary Phase I results of the Company's NeoLipid(R) formulation of c-raf Antisense Oligonucleotide at the American Association of Cancer Research (AACR) - National Cancer Institute (NCI) - European Organization for Research and Treatment of Cancer (EORTC) International Conference on Molecular Targets and Cancer Therapeutics. The conference, the premier international meeting featuring novel cancer therapeutics, is being held at the Pennsylvania Convention Center in Philadelphia, Pennsylvania from November 14-18, 2005.

"We are pleased with the preliminary Phase I results of our LErafAON-ETU study," said Guillermo A. Herrera, NeoPharm's President and Chief Executive Officer. "These preliminary results provide initial clinical proof-of-concept of our proprietary NeoPhectin(TM) cationic cardiolipin technology in the treatment of cancer. We continue to identify further expansion opportunities of our NeoLipid(R) platform in the treatment of cancer."

Poster Presentation - Abstract #A38

LErafAON-ETU has evidenced an ability to inhibit tumor growth in mouse models of human breast, ovarian, and prostate cancer. LErafAON-ETU also appears to enhance the tumor treatment effect of radiation therapy and chemotherapeutic drugs such as Taxol(R) and Taxotere(R) as well as other cytoxic tumor agents. Liposomal formulation is intended to eliminate the need for extensive phosphorothioate modification of the antisense oligonucleotide, removing a potential source of toxicity.

This Phase I dose-escalation study is designed to determine the dose-limiting toxicity and maximum-tolerated dose of LErafAON-ETU in patients with advanced cancer. LErafAON-ETU is administered as a 60-to-180-minute infusion once weekly for 3 consecutive weeks (a treatment cycle) until disease progression or unacceptable toxicity occurs.

"LErafAON-ETU may potentially have broad clinical applicability in enhancing the therapeutic effects of radiation therapy and chemotherapy in the treatment of cancer. Dose escalation continues in the Phase I study of this novel agent," said Michael S. Gordon, MD, Associate Professor of Medicine at the University of Arizona College of Medicine and Associate Director of the Arizona Cancer Center, Greater Phoenix Area.

Preliminary study results indicate that administration of LErafAON-ETU was generally well tolerated. A variable rate infusion regimen was developed to address mild-to-moderate infusion related reactions (IRRs) in patients. Subsequently, these patients completed at least one infusion at the same dose without IRRs using this regimen. Measurable blood levels of drug which increase with dose escalation have been observed in patients administered LErafAON-ETU. Seven patients have been treated with LErafAON-ETU for a median of 4 cycles (12 weekly infusions). No dose limiting side effects have been observed.

About LErafAON-ETU

LErafAON-ETU is NeoPharm's easy-to-use liposomal formulation of an antisense oligonucleotide (AON) complementary to the c-raf mRNA sequence, which mediates tumor cell growth. This drug formulation utilizes the Company's NeoPhectin(TM) transfection reagent which consists of a novel, positively charged, synthetic cardiolipin (PCL-2) and appears to eliminate the need for extensive phosphorothioate modification of the AON which can be associated with toxicity. This reagent also has potential use in the delivery of nucleic acids and siRNA molecules.

About NeoPharm, Inc.

NeoPharm, Inc., based in Waukegan, Illinois, is a publicly traded biopharmaceutical company dedicated to the research, development and commercialization of new and innovative cancer drugs for therapeutic applications. The Company has a portfolio of cancer compounds in various stages of development. Additional information can be obtained by visiting NeoPharm's Website at www.neophrm.com.

Forward Looking Statements - This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company has tried to identify such forward-looking statements by use of such words as "expects," "intends," "hopes," "anticipates," "believes," "could," "may," "appears," "evidences" and "estimates," and other similar expressions, but these words are not the exclusive means of identifying such statements. Such statements include, but are not limited to, any statements relating to the Company's drug development program, including, but not limited to clinical studies involving LErafAON-ETU, and any other statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays in financing, development, testing, obtaining regulatory approval, production and marketing of the Company's drug and non-drug compounds, including, but not limited to, LErafAON-ETU, uncertainty regarding the availability of third party production capacity, unexpected adverse side effects or inadequate therapeutic efficacy of the Company's drug and non-drug compounds, including, but not limited to, LErafAON-ETU, that could slow or prevent products coming to market, uncertainty regarding the Company's ability to market its drug and non-drug products, including, but not limited to, LErafAON-ETU, the uncertainty of patent protection for the Company's intellectual property or trade secrets, including, but not limited to, LErafAON-ETU, and other risks detailed from time to time in filings the Company makes with the Securities and Exchange Commission including its annual reports on Form 10-K and quarterly reports on Forms 10-Q. Such statements are based on management's current expectations, but actual results may differ materially due to various factors, including those risks and uncertainties mentioned or referred to in this press release. Accordingly, you should not rely on these forward-looking statements as a prediction of actual future results.