Release issued 4th February 2004

Boehringer Ingelheim enters into multi-target drug discovery collaboration with Morphochem

Munich, Germany, 4th February 2004....Morphochem AG, a leader in the evolutionary discovery of small molecule drugs announced that it has entered into a research collaboration with Boehringer Ingelheim, a leading pharmaceutical company with a focus on human pharmaceuticals and animal health. Morphochem will apply its drug discovery engine MOREsystem to the discovery and optimization of novelstructures with activity against several undisclosed novel human targets.

Financial terms of the collaboration were not disclosed.

MOREsystem combines multi-component reaction chemistry (MCR) with Morphochem's proprietary software MolMind that is based on genetic algorithms using in-silico and biological feedback. This drug discovery engine generates a range of target-directed virtual small compound libraries for hit and lead discovery in parallel, from which suitable compounds will be chosen for synthesis and biological testing. This approach reduces the attrition rate for drug candidates and allows patents to be filed early for novel compounds. Initial in-silico model building will be facilitated by Morphochems novel proprietary 3D shape similarity tool AutoPhore®. This will enable rapid access to bioisosteric solutions, scaffold hopping and provide a realistic estimate of the probability of the projects success.

Dr Peter Seufer-Wasserthal VP Business Development at Morphochem commented: "We are very pleased to collaborate with Boehringer Ingelheim and to contribute towards their drug discovery and development programs. This collaboration endorses the value of our novel approach. Compounds can be checked for fit with a target and then further refined using evolutionary algorithms so that potential drug candidates can be pre-optimized for biological activity and drug potential before synthesis is started."

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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 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 launched in Munich in 1998 and is an integrated, transnational drug discovery and development company, currently employing some 60 plus staff. To date the Company has raised EUR 78 million in four financing rounds. For further information please consult www.morphochem.com

Boehringer Ingelheim: The Boehringer Ingelheim Corporation is one of the world's 20 leading pharmaceutical companies. Headquartered in Ingelheim, Germany, it operates globally with 156 affiliates in 44 countries and more than 32,000 employees. Since it was founded in 1885, the family-owned company has been committed to researching, manufacturing and marketing novel products of high therapeutic value for human and veterinary medicine.

In 2002, Boehringer Ingelheim posted net sales of 7.6 billion euro while spending about one fifth of net sales in its largest business segment Prescription Medicines on research and development.

For further information about Boehringer Ingelheim please visit www.boehringer-ingelheim.com.

(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

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