Release issued 10th March 2008

Barcelona, Spain, October 8, 2007 - Palau Pharma, S.A. ("Palau"), the biopharmaceutical company focused on the discovery and development of novel products for the treatment of inflammatory and autoimmune diseases, today announces the formation of its Scientific Advisory Board ("SAB") comprising six international experts in a range of disciplines mainly focused on the autoimmune and inflammatory fields.

The SAB will be chaired by Professor Roderick J. Flower, a Fellow of the Royal Society, UK, and of the William Harvey Research Institute, School of Medicine and Dentistry, UK. Professor Flower has an extensive background researching the areas of inflammation and anti-inflammatory drug mechanisms and has a particular interest in NSAIDs and glucocorticoids. He is the founder and head of the department of Biochemical Pharmacology at Queen Mary, University of London, which he now co-runs with over 25 researchers. Joining Professor Flower on Palau's SAB will be:

• Josep M. Grinyó, MD, Professor of Medicine, University of Barcelona and also Chief, Division of Nephrology; Director of the Renal Transplant Unit, at the University of Barcelona.

• Desmond Fitzgerald, FRCP, FFPM, who was previously International Medical Director of ICI. Dr Fitzgerald is also a Board member of the Strathclyde Institute of Drug Research and is an independent consultant in pharmaceutical research

• John Lawrence Wallace, MSc, PhD, Department of Pharmacology & Therapeutics. Department of Physiology & Biophysics, University of Calgary, Canada

• Timothy John Williams, PhD is currently the Asthma UK Professor of Applied Pharmacology, Head of the Leukocyte Biology Section, National Heart & Lung Institute at Imperial College, London

• Thomas A. Luger, MD is the Dean of the Medical Faculty at Westphalian Wilhelms-University, Munster, Germany

Commenting on today's announcement, Ignacio Faus, CEO of Palau, said: "We are delighted to have been able to form such a strong Scientific Advisory Board. Our group of prominent advisors will be a valuable asset to Palau as we progress our development-stage pipeline and continue our discovery efforts for novel therapies in the autoimmune and anti-inflammatory fields."

Professor Flower said: "There is a great opportunity for novel therapies within Palau's therapeutic field of focus. I have been most impressed with the quality of Palau's R&D and their approach in the development of their compounds. This combination positions them well for potential future success."

About Palau Pharma

Palau Pharma, S.A. is an emerging biopharmaceutical company that focuses on the discovery and development of novel products for the treatment of inflammatory and autoimmune diseases. Palau was formed in 2006 as a spin-out from Spanish pharmaceutical company Grupo Uriach, where the team had been responsible for the discovery, development and launch of marketed drugs such as triflusal, flutrimazole and rupatadine. Palau Pharma's pipeline consists of 10 compounds addressing diseases such as asthma, psoriasis, IBD, RA, atopic dermatitis and organ transplant, five of which are currently being developed by our international partners. Palau Pharma raised €40 m on its inception from institutional investors that include Caja Duero, Andosins Capital, Invercartera and Najeti Capital.

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