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Lilly Announces Completion of Hypnion Acquisition

Indianapolis, IN -- Eli Lilly and Company (NYSE: LLY) today announced that it has completed its acquisition of Hypnion, Inc., a privately held neuroscience drug discovery company focused on sleep disorder research.

The deal, valued at a total purchase price of $315 million, bolsters Lilly's pipeline with several new early-stage drug candidates and HY10275, an insomnia molecule currently in Phase II of development. HY10275 is a dual-acting H1/5HT2A compound that is targeted at both sleep onset and sleep maintenance, thereby potentially helping people fall asleep and stay asleep.

"We are pleased to have completed the acquisition of Hypnion, and now plan to leverage our CNS expertise to continue the development of HY10275," said Steven M. Paul, M.D., executive vice president, science and technology for Lilly. "This deal not only strengthens our own sleep disorder research, but also reaffirms our commitment to remaining a leader in the field of neuroscience. As we integrate Hypnion's capabilities into our own, we will continue to focus on discovering and developing better treatments for patients struggling with insomnia and other sleep disorders."

John F. Dee, Hypnion's president and chief executive officer commented, "The success we have achieved at Hypnion is a direct result of the dedication and passion of our employees. We are excited to see our efforts be recognized by an industry leader such as Lilly, and we hope that those efforts will one day lead to better solutions for insomnia patients."

The impact of the acquisition will be reflected in Lilly's second quarter 2007 financial results and will be included in the guidance section of the company's first quarter 2007 press release on April 16, 2007.

About Eli Lilly and Company

Lilly, a leading innovation-driven corporation, is developing a growing portfolio of first-in-class and best-in-class pharmaceutical products by applying the latest research from its own worldwide laboratories and from collaborations with eminent scientific organizations. Headquartered in Indianapolis, Ind., Lilly provides answers - through medicines and information - for some of the world's most urgent medical needs. Additional information about Lilly is available at http://www.lilly.com. C-LLY

This press release contains forward-looking statements that are based on management's current expectations; however, they are subject to significant risks and uncertainties. Actual results may differ materially and will depend on, among other things, realization of anticipated operational efficiencies following the merger with Hypnion; the continuing growth of the company's currently marketed products; developments with competitive products; the timing and scope of regulatory approvals and the success of new product launches; asset impairments, restructurings, and acquisitions of compounds under development resulting in acquired-in-process research and development charges; foreign exchange rates; wholesaler inventory changes; other regulatory developments, government investigations, patent disputes, and litigation involving current and future products; changes in tax law; and the impact of governmental actions regarding pricing, importation, and reimbursement for pharmaceuticals. There is no guarantee Lilly will realize the expected benefits, or that Hypnion's technology or pipeline will yield commercially successful pharmaceutical products. For additional information about the factors that affect the company's business, please see the company's latest Form 10-K filed February 2007. The company undertakes no duty to update forward-looking statements.

Lilly Announces Acquisition of Hypnion

Deal Will Bolster Lilly's Sleep Disorder Research With Promising Insomnia Compound

Indianapolis, IN and Lexington, MA -- Eli Lilly and Company (NYSE: LLY) and Hypnion, Inc. today announced that they have signed a definitive merger agreement whereby Lilly will acquire Hypnion, a privately held neuroscience drug discovery company focused on sleep disorders. The transaction has received the requisite approval of Hypnion stockholders and is expected to close near the end of the first quarter of 2007, contingent upon clearance under the Hart-Scott-Rodino Anti-Trust Improvements Act and other customary closing conditions. Financial terms of the deal were not disclosed.

"The acquisition of Hypnion provides Lilly with a broader and more substantive presence in the area of sleep disorder research," said Steven M. Paul, M.D., executive vice president, science and technology for Lilly. "Hypnion has leveraged its expertise in this area to develop both innovative technologies and molecules, including the promising insomnia compound HY10275. We are excited to bring this expertise to Lilly and continue the efforts to discover better treatments for patients struggling with insomnia and other sleep disorders."

Nick Galakatos, Ph.D., chairman of Hypnion, commented, "Having demonstrated the promise of our pipeline of sleep medicines in the clinic and our enabling SCORE technology, we recognized that a partnership with a leading pharmaceutical company was our best strategy for moving forward quickly. Given Lilly's long record of achievement in neuroscience, we are confident that together we can produce safer and more efficacious sleep medications."

In January, Hypnion announced that its compound HY10275 met the primary and secondary endpoints in the company's initial Phase II clinical trial at doses of 1 mg and 3 mg in adults with transient insomnia. HY10275 is a proprietary compound discovered and developed by Hypnion as a dual-acting H1/5HT2a compound using the SCORE-2004™ technology.

Lazard Freres served as financial advisors to Hypnion, while Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. served as their legal advisors. For Lilly, Lehman Brothers served as financial advisors and Dewey Ballantine served as legal advisors on the deal.

About Hypnion, Inc.

Hypnion is a neuroscience drug discovery and development company that is focused on sleep disorders. The company was founded in 2000 by leading scientists in the field of sleep disorder research and has proprietary rights to the sleep-wake drug discovery system, SCORE-2004(TM). The system is predictive of human response and allows high-throughput pre-clinical testing of non-addictive sleep disorder drug candidates. Additional information about Hypnion is available at http://www.hypnion.com

About Eli Lilly and Company

This press release contains forward-looking statements about the benefits of a merger between Lilly and Hypnion and the potential of Hypnion's technology and pipeline. It reflects Lilly's and Hypnion's current beliefs, assuming that the transaction is successfully closed; however, as with any such under-taking, there are substantial risks and uncertainties in the process of implementing the transaction. There is no guarantee Lilly will realize the expected benefits, or that Hypnion's technology or pipeline will yield commercially successful pharmaceutical products. For further discussion of these and other risks and uncertainties, please see Lilly's latest Form 10- K filed February 2007. The companies undertake no duty to update forward- looking statements.

Contacts

Mark E. Taylor, Lilly - (317) 276-5795

Nick Galakatos, Hypnion - (617) 949-2223

Tony Russo, Noonan Russo for Hypnion - (212) 845-4251

Hypnion Announces Positive and Robust Phase II Results for Novel Sleep Drug - HY10275

Primary and Secondary Efficacy Endpoints Achieved Statistical Significance
Study Validated Drug's Unique H1 / 5HT2a Mechanisms of Action
Drug Was Very Well Tolerated

LEXINGTON, Mass., Jan. 5 /PRNewswire/ -- Hypnion, Inc. today announced that it met the primary and secondary endpoints in the company's initial Phase II clinical trial evaluating HY10275 at doses of 1 mg and 3 mg in adults with transient insomnia. HY10275 is a proprietary compound discovered and developed by Hypnion as a dual-acting H1 / 5HT2a compound using the SCORE-2004(TM) technology.

In a randomized, double blind, placebo-controlled study of 52 patients, HY10275 demonstrated statistically significant improvements in Wake After Sleep Onset (WASO), an objective measure of sleep maintenance. WASO decreased in a dose dependent manner by 62 minutes for 3 mg (p<0.001) and 35 minutes for 1 mg (p<0.002) compared to placebo for the primary efficacy analysis. Subjects with moderate to severe transient insomnia responded as well as or better than subjects with mild to moderate transient insomnia. HY10275 also met secondary efficacy endpoints including latency to persistent sleep (LPS). There were no adverse events attributed to treatment, and there were no reports of next day impairment or residual fatigue.

"The WASO and total sleep time improvements produced by HY10275 are especially robust," said Dr. Thomas Roth, Chief, Division Head, Sleep Disorders & Research Center, Henry Ford Hospital, Detroit, MI. "In addition, latency to persistent sleep was also reduced, and was particularly strong in subjects who had difficulty falling asleep. These findings are very impressive and their scientific underpinnings offer exciting new promise for the treatment of insomnia."

Given its mechanism of action, HY10275 may have the opportunity to be classified as a non-scheduled medication. Currently used medications that act via the GABA neurotransmitter system have been associated with physical dependence and drug-seeking behavior, and are therefore classified as controlled substances.

"We are very encouraged by the outcome of this initial Phase II trial, which demonstrates proof of concept for both efficacy and safety of HY10275," said John F. Dee, President and CEO of Hypnion. "The pharmacodymamic and pharmacokinetic profile of the drug coupled with its unique mechanism of action offers strong promise as a highly differentiated therapeutic. HY10275 could represent a major improvement in the treatment of insomnia as a safe, non-scheduled and well tolerated medication with superior sleep maintenance efficacy and comparable sleep onset efficacy to currently used medications."

About HY-10275

HY10275 is a novel compound specifically designed to modulate two key neurobiological mechanisms that interfere with the sleeping process. HY10275 is highly selective for histamine H1 and serotonin 5HT2a, two chemical receptors that are known to impact the ability to fall asleep and stay asleep. Born from translational sleep research pioneered by Hypnion Cofounder and Chief Scientific Officer, Dr. Dale M. Edgar, HY10275 was rationally designed to "let you sleep" rather than depress the entire brain to "make you sleep." This dual-acting receptor activity and the lack of affinity for undesired off- target receptors are thought to account for the compounds excellent efficacy and tolerability profile.

About Insomnia

Insomnia is a serious worldwide condition that affects a large number of individuals. According to the National Sleep Foundation's Sleep in America Poll 2005, approximately 50 percent of the U.S. adult population reported experiencing at least one symptom of insomnia for several nights a week during the last year. This represents more than 100 million Americans, a figure supported by several reviews in Sleep Medicine. An estimated 30 percent to 40 percent of all adults complain of transient insomnia, generally defined as a complaint lasting up to three weeks, while 10 percent to 15 percent complain of chronic insomnia, generally defined as a complaint lasting approximately four weeks or longer. In addition, sleep maintenance insomnia, or the inability to stay asleep throughout the night, is significantly more prevalent than sleep onset insomnia.

About Hypnion

Hypnion is a neuroscience drug discovery and development company located in Lexington, Mass., that is focused on sleep disorders. Product candidates and research capabilities address large untapped markets, including insomnia, excessive daytime sleepiness, sleep apnea, restless legs syndrome and fibromyalgia. The company was founded in 2000 by leading scientists in the field of sleep disorder research and has proprietary rights to the world's most advanced sleep-wake drug discovery system, SCORE-2004(TM). The system is highly predictive of human response and allows high-throughput pre-clinical testing of drug candidates to optimize the key attributes for the next generation of safe, non-addictive sleep disorder therapies.

Contacts

John F. Dee
President and CEO
Hypnion, Inc.
781-778-0300
jdee@hypnion.com

Tony Russo
CEO
Noonan Russo
212-845-4251
tony.russo@eurorscg.com

Hypnion, Inc. Raises $20.1 Million in Extended Series B Financing

Funds Will Advance Clinical Development of Novel Therapies for Insomnia

Lexington, MA, December 19, 2005 - Hypnion, Inc., today announced that it raised $20.1 million in an extension of its Series B private equity financing, in response to favorable clinical results in its lead insomnia program. Investors included MPM Capital, Advanced Technology Ventures, Forward Ventures, Flagship Ventures, Oxford Bioscience Partners, GIMV, S.R. One Limited, JAFCO, Alexandria Real Estate Equities, and Mintz Levin Investments. With this financing, Hypnion expects to rapidly advance its lead program into Phase II and a second compound into Phase I.

"This financing demonstrates the confidence and excitement of our investors in the promise and market potential of our clinical programs," said John F. Dee, President and Chief Executive Officer.

Hypnion has discovered and is developing a unique and proprietary series of highly selective H1 receptor modulators to treat chronic insomnia. The basis for these discoveries stemmed from the company's Research and Development efforts that heavily employed SCORE-2004™, a proprietary pharmacological drug discovery system for the selection of clinical candidates in insomnia and other neurobiological indications. Pre-clinical studies have demonstrated that Hypnion's proprietary compounds have superior efficacy and side-effect profiles than the leading marketed drugs including Ambien, Lunesta, doxepin, and trazodone. Given their mechanism of action, Hypnion's compounds may have the opportunity to be classified as non-scheduled medications, unlike Ambien and Lunesta. Hypnion believes they could represent a major improvement in the treatment of insomnia. The Company has filed for a broad and comprehensive patent estate for composition of matter and method of use patents.

Insomnia is a serious condition that affects a large number of patients. According to the National Sleep Foundation's Sleep in America Poll 2005, approximately 50% of the adult population reported experiencing at least one symptom of insomnia for several nights a week during the last year. Sleep loss is known to impact learning and memory, and recent research indicates that sleep deprivation not only depresses the immune system, but also may make us vulnerable to many other diseases. To put it into context, the prevalence of insomnia is larger than that of anxiety or depression.

About Hypnion

Hypnion is a neuroscience drug discovery and development company focused on sleep disorders. Our product candidates and research capabilities address large untapped markets including insomnia, excessive daytime sleepiness, sleep apnea, restless legs syndrome, and fibromyalgia. The Company was founded by prominent and highly regarded scientists in the field of sleep disorder research and has proprietary rights to the worlds' most advanced sleep-wake drug discovery system, SCORE-2004™. The system is highly predictive of human response and allows high-throughput testing of drug candidates at the pre-clinical stage to optimize the next generation of safe, non-addictive therapies for this vast and untreated market.

Contacts

John F. Dee, President and CEO
Michael E. Fitzgerald, Chief Financial Officer
781-778-0300
mfitzgerald@hypnion.com

Hypnion, Inc. Relocates Corporate Headquarters And Research Operations To Lexington, Massachusetts

Facility expands as biotech firm continues growth

Lexington, MA, October 18, 2004 – Hypnion, Inc. (www.Hypnion.com), an innovative neuroscience drug discovery company focused on sleep-wake neurobiology and drug development, announced today that the company has relocated its corporate headquarters from Worcester, MA to Lexington, MA. The Company has leased 33,647 square feet in the newly renovated Lexington Technology Park, previously the corporate headquarters of Raytheon Company.

“We are delighted to move into this state-of-the-art building”, said John F. Dee, President and CEO of Hypnion. “The new facility will support our core research and development activities as our programs progress into the next phase of clinical development. Lexington Technology Park provided us with an ideal location, and the opportunity to design a space that specifically fit our needs.”

Hypnion, Inc. is the second tenant to move into the newly renovated 95-acre property, developed by Patriot Partners of Framingham, MA. “We’re excited to welcome Hypnion to their new corporate home in Lexington Technology Park. Together we have developed a unique and modern facility, which will allow for Hypnion’s continued growth,” said Stephen Rice, Principal of Patriot Partners.

Hypnion, Inc.’s new address is 500 Patriot Way, Lexington, MA, 02421, telephone 781 778-0300, facsimile 781 778-0303.

About Hypnion

Hypnion is a neuroscience drug discovery company whose objective is to become the worldwide leader in sleep-wake neurobiology and pharmaceutical development. The company was founded by prominent and highly regarded scientists in the field of sleep disorder research to enable the discovery and development of novel therapies.

The company is addressing a tremendous worldwide market opportunity to serve people suffering from the broad category of sleep disorders, which includes disorders of sleep (e.g., insomnia, sleep apnea, restless leg syndrome), disorders of wakefulness and attention (illnesses causing excessive sleepiness or chronic fatigue, ADHD) and circadian rhythm abnormalities. Recent research indicates that sleep disorders not only depress the immune system but may also make us vulnerable to many other diseases including diabetes, high blood pressure, obesity, heart failure, and even stroke or depression. Current therapies for these conditions have significant limitations, especially when used chronically or for treating the elderly.

Hypnion has proprietary rights to the worlds’ most advanced pre-clinical sleep-wake system, SCORE-2000™, which is highly predictive of human response for many sleep-wake efficacy and side-effect variables, significantly lowering clinical trial risk. The system allows high-throughput testing of drug candidates at the pre-clinical stage to optimize the next generation of safe, non-addictive therapies for this vast and untreated market.

Contacts

Michael E. Fitzgerald, VP, Finance & Administration, & CFO
781-778-0300
mfitzgerald@hypnion.com

Hypnion Secures $47.5 Million in Series B Financing

Company Developing New Class of Therapies for Chronic, Debilitating Sleep Disorders; Large Underserved Market Could Represent $10 Billion in U.S. Sales.

Worcester, MA, March 17, 2003 - Hypnion, Inc. today announced it raised $47.5 million in a Series B round of private equity financing led by Forward Ventures and MPM Capital. With the current round of financing, Hypnion expects to enter clinical trials with several proprietary compounds that have superior preclinical efficacy and safety compared to the current market leaders in sleep and wake promotion.

Other investors included Advanced Technology Ventures, S.R. One, Limited, JAFCO and Coastview Capital, along with returning Series A investors Oxford Bioscience Partners, Flagship Ventures, and GIMV.

“This latest round of financing by some of the most important names in venture funding demonstrates the confidence our investors have in the viability and market potential of the products we are developing,” said John Dee, President and CEO of Hypnion. “Our priority will be to advance our lead program into clinical trials by early 2004.”

“Hypnion is poised for success given the promise of its compounds, the advantages the company has in lead optimization, and the strength of its team,” said Joel Martin, Partner with Forward Ventures.

“The large size of the market for sleep disorder therapies and the improvement that Hypnion’s products represent over existing drugs makes Hypnion an attractive investment for us,” said Nick Galakatos, General Partner with MPM Capital.

More than 50 million people in the U.S. suffer from serious sleep disorders that include insomnia, sleep apnea, excessive daytime sleepiness and circadian rhythm abnormalities such as jet-lag and shift-work disorders. Current therapies for these conditions have significant limitations when used chronically or for treating the elderly. The market leader in sleep therapeutics is currently Ambien®, a $1 billion U.S. product, and the leader in wake-alertness is ProVigil®, a $200 million U.S. product with rapidly growing sales.

Hypnion has proprietary rights to the world’s most advanced in-vivo sleep-wake testing system - SCORE-2000™. Based on 15 years of research at Stanford University and developed by Hypnion’s Chief Science and Technology Officer, Dr. Dale Edgar, SCORE-2000™ is highly predictive of human response for many sleep-wake efficacy and side-effect parameters, significantly lowering clinical trial risk. Through SCORE, Hypnion is targeting innovative medicines designed to be highly efficacious and less prone to undesirable side effects than existing drugs. The patient population for sleep disorders is larger than those for anxiety or depression and represents a potential $10 billion market in the U.S.

Initially the company is transforming safe, marketed compounds into sleep-wake therapeutics by designing patentable analogs that have optimal sleep-wake efficacy and minimal side effects. These compounds work on primary sleep-wake pathways that have no evidence of addiction or abuse potential. The company has three such preclinical drug programs and many more under evaluation. Under the leadership of Dr. James White, Executive Vice President of Research and Development and Dr. Dale Edgar, Hypnion has selected a clinical development candidate for its lead insomnia program and several backup compounds. The company expects to select preclinical development candidates for two other lead programs this year.

Hypnion also announced today several new members of the company’s board of directors: Joel Martin, Ph.D., Partner, Forward Ventures; Nicholas Galakatos, Ph.D., General Partner, MPM Capital; Jean M. George, Partner, Advanced Technology Ventures; and Edward Scolnick, M.D., former President Merck Research Laboratories. Other Board Directors include, Jonathan J. Fleming, Managing Partner, Oxford Bioscience Partners; David K. Stone, Managing Director, Flagship Ventures; Elkan R. Gamzu, Ph.D., Principal, enERGetics and John F. Dee, President and CEO of Hypnion. Hypnion’s scientific advisory board, executive management team and scientific team include the world’s leading experts in sleep disorders.

About Hypnion

Hypnion is a neuroscience drug discovery company whose objective is to become the worldwide leader in sleep-wake neurobiology and pharmaceuticals. This field includes both disorders of sleep (e.g., insomnia, sleep apnea, excessive daytime sleepiness) and circadian rhythm abnormalities (e.g., jet-lag, shift-work disorders), which affect over 50 million people in the U.S. alone. The Company was founded by leading scientists in the field of sleep research to enable the discovery and development of new therapies for this large and relatively untapped market. For more information visit www.hypnion.com.

About Forward Ventures

Forward Ventures is Southern California’s largest venture fund focused exclusively on the life sciences. Forward Ventures identifies candidates for early stage investments that both accelerate the development of innovative and effective treatments for serious diseases and produce significant returns for investors. The fund’s partners apply their combination of scientific and medical research, business and financial expertise and wide range of relationships to benefit its portfolio companies, participating actively in building each successful enterprise. For more information, contact Forward Ventures at (858) 677-6077 or via the Web at www.forwardventures.com.

About MPM

MPM Capital L.P. is a global investment management firm focused solely on life sciences investing. One of the largest investment management firms dedicated to the life sciences sector, MPM Capital has offices in Boston, San Francisco, and Munich. MPM's portfolio includes early stage start-ups as well as large capitalization public companies, representing biopharmaceutical and medical device companies, encompassing platform technology as well as product-driven opportunities. The firm manages over $2.1 billion in assets through the MPM BioVentures Family of venture capital funds and the MPM BioEquities public market funds. More information on MPM can be found at www.MPMCapital.com.

Contacts

John F. Dee, President & CEO
Michael E. Fitzgerald, VP, Finance & CFO
508-438-2800
mfitzgerald@hypnion.com

Hypnion, Inc. Raises $10.4 Million In Series A Private Equity Financing

Funds Will be Used to Commercialize the Company's Functional Genomics and In Vivo Compound Screening Expertise in the Sleep Disorders and Related CNS Areas

Worcester, MA, September 26, 2000 - Hypnion, Inc. (www.Hypnion.com) announced today that it has raised $10.4 million in private equity financing from a select group of investors. Oxford Bioscience Partners, a life science venture capital firm, led the financing. Other significant investors included AGTC Funds, a new venture firm focused on genomics companies, and GIMV, a large international investment company located in Belgium.

Hypnion is a recently founded biotechnology discovery company located at Five-Biotech Park in Worcester, MA, whose objective is to become the worldwide leader in sleep/wake neurobiology and pharmaceuticals. This field includes both disorders of sleep (e.g., insomnia, sleep apnea, excessive daytime sleepiness) and circadian rhythm abnormalities (e.g., jet-lag, shift-work disorders), which affect over 40 million people in the US alone. The Company was founded by leading scientists in the field of sleep research to enable the discovery and development of new therapies for this large and relatively untapped market.

A key component of Hypnion's core technology is a sophisticated, high-throughput in vivo assay system invented at and exclusively licensed from Stanford University and named SCORE 2000™. The system simultaneously monitors EEG sleep-wakefulness and other physiological and behavioral measures in rodents, compares the output against a large database of digitized standards, and thereby accurately predicts human response and efficacy of tested hypnotic and stimulant compounds. In addition, the bioassay predicts sedative side effects of several classes of drugs including antihistamines, antidepressants, analgesics, anxiolytics, anticonvulsants, and cardiovascular agents. In over ten years of research at Stanford, many pharmaceutical and biotechnology companies have used the SCORE 2000™ sleep-wake assay system to evaluate their product candidates. Hypnion intends to offer its corporate customers an improved version of the system (SCORE 2000™) with increased features, capacity and Internet-enabled data management.

Hypnion's technology platform also includes advanced genomic approaches, including expression profiling and high efficiency germline mutagenesis of inbred mice to discover genes and drug targets that control complex CNS functions. The Company will use the SCORE 2000™ system for rapid phenotype screening of mutant mice, followed by gene identification and patenting of novel genes and biochemical pathways involved in sleep regulation. Finally, Hypnion's research platform has important potential applications in several additional CNS indications, including depression, pain, and epilepsy, which may offer new opportunities for corporate alliances. The funds raised from the current financing will be used mainly to build the SCORE 2000™ bioassay, and establish the functional genomics capability in order to initiate corporate partnerships and drug discovery efforts.

The Company was founded by five leading scientists who will either be Hypnion employees or members of the Company's Scientific Advisory Board: Dale M. Edgar, Ph.D., Associate Professor of Psychiatry and Behavioral Sciences at Stanford University and inventor of the sleep/wake in vivo assay technology (SCORE 2000™); Emmanuel Mignot, M.D., Ph.D., Associate Professor of Psychiatry and Behavioral Sciences at Stanford University; Karen J. Moore, Ph.D., former Director of Genetic Systems at Millennium Pharmaceuticals, Inc.; Michael Rosbash Ph.D., Professor of Biology and Investigator of the Howard Hughes Medical Institute at Brandeis University; and Joseph S. Takahashi, Ph.D., Glass Professor of Life Sciences and Investigator of the Howard Hughes Medical Institute at Northwestern University. Their collective expertise spans the areas of sleep disorders and circadian rhythms, high throughput in vivo assays, genetics and functional genomics, and CNS disorders.

"We are very excited about the opportunity to make a significant and timely contribution to drug discovery in the sleep disorders field." said John F. Dee, Hypnion's President and Chief Executive Officer. "The potential for marketing services and discovering new treatments in sleep disorder medicine is tremendous. Approximately 20% of the population suffers from a chronic sleep disorder while only 5% of those afflicted are diagnosed. Our platform technology will help identify novel drug targets and compounds through advanced genomics and in vivo models. The Company is targeting today's bottlenecks in the gene/drug discovery process, while focusing on CNS indications with large unmet needs."

Hypnion also announced the election of three new members to its Board of Directors, which now numbers seven: David K. Stone, a Partner with AGTC Funds; Patrick Van Beneden, Investment Director-Life Sciences with GIMV; and Emmanuel Mignot, M.D., Ph.D., one of Hypnion's founders. Other Board members include Jonathan J. Fleming (Chairman), a General Partner with Oxford Bioscience Partners; as well as three of the Company's employees: John F. Dee, Hypnion's CEO and a former McKinsey & Co. consultant and biotechnology CEO; and Dr. Dale M. Edgar and Dr. Karen J. Moore, both Hypnion senior executives and founders. In addition, Michael E. Fitzgerald, a former CFO at several biotechnology companies, has joined Hypnion as the Chief Financial Officer.

About Oxford Bioscience Partners

Oxford Bioscience Partners (www.oxbio.com) is a life science venture capital firm that provides equity financing and management assistance to start-up and early-stage, entrepreneurial-driven companies in the bioscience and healthcare industries. The General Partners of OBP currently manage venture funds with combined committed capital of more than $400 million. Investors in the fund include Goldman Sachs, Amgen, Bayer, Biogen and Akzo Nobel Pharma.

About AGTC Funds

Applied Genomic Technology Capital Funds (www.agtcfunds.com) is a specialty venture capital group focused on investment opportunities enabled by the genomic revolution. AGTC Funds invests in private companies that apply genomic information and technologies to develop products or services that create significant shareholder value. Formed by NewcoGen Group, in partnership with OneLiberty Ventures, AGTC Funds' limited partners include both institutional investors and corporations with a strategic interest in genomics, including Affymetrix, Antigenics, Compaq Computer Corporation and Millennium Pharmaceuticals, Inc. As the first specialty fund focused on this sector, AGTC expects to play a leadership role in selecting, funding and developing new genomics application companies.

About GIMV

GIMV (www.gimv.com) was set up in 1980 and has been listed on the Brussels Stock Exchange since June 1997. The Venture Capital and Corporate Investment departments of GIMV provide risk capital for more than 300 industrial, commercial, and service companies, to promote innovation and growth respectively. Their current portfolio in life sciences includes approximately 35 companies. GIMV operates from Flanders through an international network in Europe, the USA and Asia. It also manages the Biotech Fonds Vlaanderen, a venture capital investment fund set up and funded by the Flemish government. This department invests in start-up projects and developing companies in the biotechnology sector.

Contacts

John F. Dee, President & CEO
Michael E. Fitzgerald, VP, Finance & CFO
508-438-2800
mfitzgerald@hypnion.com