Release issued 10th February 2003

Munich, October 16 2002 ….

Morphochem AG, a leader in chemical genomics, and Fox Chase Cancer Center (Philadelphia, US), a comprehensive cancer center, have entered into a research collaboration that will leverage the strengths of both organizations to develop new treatments for cancer. The collaboration is wide ranging and provides for multiple research projects under the terms of the agreement with the initial focus of the research being to progress new compounds in the area of Ras pathway modulators towards the clinic.

The agreement will combine Morphochem's chemical genomics expertise in generating novel, patentable small molecules through its evolutionary approach using multi- component reaction (MCR) chemistry and its proprietary software - MolMind(tm) - based on genetic algorithms for known and unknown targets, with Fox Chase Cancer Center's cutting edge biology and clinical expertise in cancer. Under the terms of the agreement Morphochem will fund the research work and will retain full commercial rights to any products or technologies emerging from the collaboration. The terms of the deal were not disclosed. Dr Lutz Weber, CEO of Morphochem, said, "This collaboration fits our vision of working with partners to apply our chemical genomics drug discovery process to validate targets and generate potential drug candidates. Fox Chase is a world class research center with proven expertise in both the identification of novel cancer targets as well as clinical development. This collaboration will make a positive contribution to our oncology pipeline and will minimize the inherent risks of the drug development process."

Patricia Harsche, vice president for business development and planning at Fox Chase Cancer Center, said, "With its unique MCR chemistry, and their expertise in the oncology area, Morphochem is an excellent partner for identifying new small molecules directed towards novel targets identified at Fox Chase. The collaboration seeks to maximize the synergies between our biological and chemical expertise and provides a route for commercialization of chosen discoveries."

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Notes to Editors

Morphochem AG www.morphochem.de

Morphochem's vision is to create a new evolutionary drug discovery process using chemical genomics to discover and develop next generation therapeutics for major disease areas of high unmet medical need such as infection, inflammation, metabolism and cancer.

Founded in Munich in 1996, the Company integrates novel chemistries with biological screening using custom informatics tools (MOLMIND) into an unique and unparalleled discovery and optimization engine. Highly selective small molecule therapeutics with minimal side effects are being selected for in house and partnered development. With its three research sites Munich, Basel and Princeton, Morphochem is an integrated, transnational drug discovery and development company.

Fox Chase Cancer Center

Fox Chase Cancer Center, one of the first comprehensive cancer centers in the US designated by the National Cancer Institute in 1974, conducts basic and clinical research; programs of prevention, detection and treatment of cancer; and community outreach. For more information about Fox Chase activities, visit the Center's web site at www.fcc.edu or call 1-888-FOX CHASE.

(4th February 2004) Boehringer Ingelheim enters into multi-target drug discovery collaboration with Morphochem

(8th December 2003) Morphochem enters into research collaboration with Novartis for use of its MOREsystem in lead discovery

(7th November 2003) Morphochem names Alfred E. Seidel as CEO

(16th October 2003) New appointments prepare Morphochem for cancer product development

(4th July 2003) Morphochem launches new website that reflects its transition to a drug development company