Release issued 4th July 2003

Munich, Germany, 4 July 2003…Morphochem AG, the trans- national evolutionary drug discovery and development company, has launched its new website (at www.morphochem.com) that has been redesigned and updated to reflect its successful transition from a chemical technology platform company to one that is generating products that are approaching the clinic.

Thomas Loeser, Morphochem's CFO and head of PR and IR, said: "The design and content clearly projects our successful advancement in generating products both in house and for partners in areas of unmet medical need in oncology and anti- infectives. The site has been designed to keep industry, investor and scientific audiences abreast of our developments."

The website has a dynamic style with a strong photographic element - all images were taken at Morphochem - reflecting the Company's style and the value it places on its people. The different sections of the website can be readily navigated from the homepage which also contains a "ticker" for easy access and viewing of the latest news. Primary navigation guides the reader to up-to-date information on corporate developments, the technology, pipeline disease focus and markets, business strategy and partnering opportunities, news and events, and careers. Detailed information on all aspects of the science and business can be readily accessed through a series of factsheets in the information section together with current corporate and scientific publications and presentations.

The website was designed and copywritten by Northbank communications (www.northbankcommunications.com) with database development by Station (www.station.ch).

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Morphochem AG discovers and develops highly selective small molecule compounds for the medicines of tomorrow. The company integrates novel chemistries with biological screening on the basis of its proprietary MolMind(tm) technology. Its unique and highly integrated chemical genomics platform provides a continuous flow of novel drug candidates for un-met medical needs in major areas of indications such as cancer and anti-infectives

Morphochem was founded in Munich in 1996 and is an integrated, transnational drug discovery and development company, currently employing some 100 staff. To date the Company has raised €78 million in four financing rounds.

(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

(27th March 2003) Morphochem and Xenogen collaborate to develop novel drug candidates against bacterial biofilms