Savient Pharmaceuticals, Inc. Provides Update on Its Process for the Potential Divestiture of Its Israeli Operations and Subsidiary.

EAST BRUNSWICK, N.J. -- Company to Focus Resources on Advancing Clinical Development of Its Two Phase II Products, Prosaptide and Puricase; Seeks to Enhance Clinical Pipeline

Savient Pharmaceuticals, Inc. (NASDAQ:SVNT) today announced that its management, together with its advisors, UBS Investment Bank, is proceeding with the process for exploring a potential divestiture of its Israeli business operations including its subsidiary, Bio-Technology General (Israel) Ltd. Early in the fourth quarter of 2004, a confidential information memorandum is expected to be made available to prospective acquirers. If a satisfactory offer is received and approved by the Company's board of directors, management expects that, subject to the receipt of required regulatory approvals, the transaction could complete in the first half of 2005.

The potential divestiture is expected to include existing biopharmaceutical product licensing arrangements outside of Israel such as the human growth hormone, Tev-Tropin(TM), licensed in the United States to Teva Pharmaceutical Industries, Ltd. The potential divestiture would also include products currently manufactured in Israel such as the sodium hyaluronate (HA) based product out-licensing candidates Nuflexxa(TM) (pending final FDA approval) in the United States, Euflexxa(TM) in Europe and BioLon(TM) in the United States.

"We are very pleased to be moving forward with the execution of our previously announced plans to reposition the Company to focus on the development of our product pipeline. A successful divestment of our Israeli business would streamline our operations and provide the financial resources to advance our two primary drug candidates currently in Phase II clinical development," said Christopher Clement, President and Chief Executive Officer of Savient. He continued, "Ultimately, we believe these actions will increase the likelihood that the full value of our assets will be realized by our shareholders."

The Company is conducting a Phase II multi-center dose-ranging safety and efficacy study of repeated intravenous administration of Puricase(R), assessing uric acid levels in patients with severe refractory gout. Today, there is no FDA-approved therapy for these patients. The Company's goal is to complete the study this year and, if successful, enter Phase III trials in 2005.

The Company is also conducting a Phase II clinical safety and dose-ranging study of Prosaptide in the treatment of neuropathic pain associated with HIV/AIDS. The Company's goal is to complete this study by the third quarter of next year.

In July, the Company conducted a Scientific Advisory Panel review of its monoclonal antibody technology (referred to as BTG-271) to consider progress and the possibilities for its development in several potential indications. The Company will complete pre-clinical experiments in two indications leading to a decision to proceed or terminate development of the technology by year-end.

The Company is also stepping up efforts to in-license and develop novel compounds in early- to mid-stage clinical development.

The Company continues to market Oxandrin(R) for involuntary weight loss in the United States. In addition, the Company's U.K. subsidiary, Rosemont Pharmaceuticals Limited, continues to develop, manufacture and market oral liquid pharmaceuticals primarily in the United Kingdom. However, modification of the Rosemont facility is under way with a view toward attaining U.S. FDA approval and the introduction of Rosemont's oral liquid products in the United States. The Company plans to submit its first FDA filing of an oral liquid product, Soltamox(TM) (oral liquid tamoxifen), later this year. The Company is also seeking a marketing partner for Soltamox in Germany where it has already received regulatory approval.

Several developments anticipated in the near-term related to Savient's human growth hormone and sodium hyaluronate products are expected to enhance the value of the Company's assets to be included in the confidential information memorandum. The Company is proceeding with its plans to bring its FDA approved recombinant human growth hormone to market in the United States late in the fourth quarter of this year. The product is licensed to and will be marketed by Teva under the trade name Tev-Tropin(TM). The U.S. pediatric market for recombinant human growth hormones is approximately $500 million and currently growing at an annual rate of 12%.

The Company is also seeking marketing partners for its sodium hyaluronate (HA) injectable, Nuflexxa(TM) (U.S. - approvable, pending final FDA approval) or Euflexxa(TM) (Europe - approved), for the treatment of pain associated with osteoarthritis of the knee. The U.S. market alone for this indication is about $350 million and growing at a double-digit rate.

In addition, the Company is seeking a new marketing partner in the United States for BioLon(TM), its HA-based, high-viscosity gel used in ophthalmic surgery procedures such as cataract removal and intraocular lens implantation. The global market for this niche product is about $130 million with only minimal growth expected.

Mr. Clement continued, "We are acting upon our stated plan by taking the steps to best position the Company to focus on its development pipeline, build a new senior management team, eliminate non-strategic spending and redirect our resources to the areas of highest potential return. As progress is made on each of these fronts, we will keep our stakeholders advised."

About Savient Pharmaceuticals, Inc.

Savient Pharmaceuticals, Inc. is engaged in developing, manufacturing, and marketing pharmaceutical products that address unmet medical needs in both niche and wider markets. Products marketed by Savient in the United States are Oxandrin(R) (oxandrolone, USP) and Delatestryl(R) (testosterone enanthate). The Company's subsidiary, Rosemont Pharmaceuticals Limited, develops, manufactures, and markets through its own sales force oral liquid formulations of prescription products for the UK pharmaceutical market. The Company's Israeli subsidiary, Bio-Technology General (Israel) Ltd., manufactures and markets in Israel Bio-Tropin(TM) (recombinant human growth hormone), BioLon(R) (sodium hyaluronate), Bio-Hep-B(R) (hepatitis B vaccine), and Arthrease(TM) (sodium hyaluronate for osteoarthritis). Products marketed by Savient's licensees are Mircette(R) (oral contraceptive), and BioLon(R) in the United States, and Bio-Tropin(TM), BioLon(R), Bio-Hep-B(R), Silkis(R) (vitamin D derivative), and recombinant human insulin, in international markets. Savient's news releases and other information are available on the Company's website at www.savientpharma.com.

Arthrease is a trademark of DePuy Orthopaedics, Inc., except in Israel, where it is owned by Bio-Technology General (Israel) Ltd., Savient's wholly owned subsidiary; Mircette is a registered trademark of Organon, Inc.; Puricase is a registered trademark of Mountain View Pharmaceuticals, Inc.; Silkis is a registered trademark of Galderma S.A.

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this report regarding the Company's strategy, expected future financial position, results of operations, cash flows, financing plans, discovery and development of products, strategic alliances, competitive position, plans and objectives of management are forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "will" and other similar expressions help identify forward-looking statements, although not all forward-looking statements contain these identifying words. In particular, the statements regarding the Company's new strategic direction and its potential effects on the Company's business are forward-looking statements. These forward-looking statements involve substantial risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the Company's business and the biopharmaceutical and specialty pharmaceutical industries in which the Company operates. Such risks and uncertainties include, but are not limited to, delay or failure in developing Prosaptide, Puricase and other product candidates; difficulties of expanding the Company's product portfolio through in-licensing; disruption of management and costs associated with the divestiture of the Company's operations in Israel; introduction of generic competition for Oxandrin; fluctuations in buying patterns of wholesalers; potential future returns of Oxandrin or other products; difficulties in obtaining financing; potential development of alternative technologies or more effective products by competitors; reliance on third-parties to manufacture, market and distribute many of the Company's products; economic, political and other risks associated with foreign operations; risks of maintaining protection for the Company's intellectual property; risks of an adverse determination in on-going or future intellectual property litigation; and risks associated with stringent government regulation of the biopharmaceutical and specialty pharmaceutical industries. The Company may not actually achieve the plans, intentions or expectations disclosed in its forward-looking statements, and you should not place undue reliance on the Company's forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that the Company makes. The Company's forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments that the Company may make. The Company does not assume any obligation to update any forward-looking statements.