Panacea Pharmaceuticals, Inc. Announces Management Change and Promotions

September 10, 2004 – Gaithersburg, Maryland – Panacea Pharmaceuticals, Inc. announced today that Kasra Ghanbari has resigned his position as President, moving to a new position where he will head corporate and business development efforts as well as support public, media, and investor relation activities. Mr. Ghanbari will also continue to serve on Panacea's Board of Directors.

The Company is also pleased to announce the promotion of Kilian Songwe, MPH, MBA to Vice-President of Operations and Michael S. Lebowitz, PhD to Director of Research.

"These recent organizational changes will allow us to better focus on our advancing technology programs while simultaneously streamlining our operations and reducing our costs," stated Hossein A. Ghanbari, PhD, CEO and Chief Scientific Officer of the Company. "Panacea has now entered the product development phase for several of our programs, and we will look to establish one or more key partnerships to help commercialize our technologies."

Mr. Songwe joined Panacea in 2001 as Director of Operations. Prior to that, he served as Chief Medical Technologist at Jennie Stuart Medical Center in Kentucky, where he oversaw the daily operations and management of its clinical laboratory and ensured compliance with CAP, CLIA, JCAHO, and all other Federal and State regulatory requirements. He has served with the State of Maryland Department of Health and Mental Hygiene, where he coordinated the state-wide Childhood Lead Poison Prevention Training Program and worked with the state's testing laboratories to measure lead levels in blood specimens. Mr. Songwe was a member of The Futures Group International, International Health Policy, a Washington, DC think-tank, where he contributed to working groups on the situational analysis and socioeconomic impact of the AIDS epidemic in Sub-Saharan Africa. He has served as Clinical Laboratory Supervisor for Nymox Corporation in Rockville, Maryland, where he assisted in establishing a CLIA-certified clinical reference laboratory that provided specialty testing for Alzheimer's disease. Prior to that, Mr. Songwe worked for seven years at Greater Southeast Community Hospital and several years at The George Washington University Medical Center, both in Washington, DC, as a Medical Laboratory Technologist, conducting an array of serological and clinical chemistry tests.

Dr. Lebowitz joined Panacea in 2000 as a Staff Scientist and was promoted to Director, Parkinson's Disease Program and Project Leader, HAAH Oncology Therapeutics in early 2002. He received his PhD from the Johns Hopkins University School of Medicine in Biochemistry, Cellular, and Molecular Biology where his work focused on structure-activity relationships of a natural protein inhibitor of cellular energy metabolism. Subsequently, he completed a three-year fellowship in immunology in the Department of Pathology, Division of Immunopathology also at the Johns Hopkins University School of Medicine. There he contributed to the development of novel bivalent analogs of major histocompatibility complexes and T-cell receptors for use in both research and clinical diagnostic applications. Dr. Lebowitz is also currently an adjunct Lecturer in the Advanced Academic Program in Biotechnology at the Krieger School of Arts and Sciences, Johns Hopkins University. Prior to joining Panacea, Dr. Lebowitz was a research scientist at Proteinix Corporation in Gaithersburg, Maryland where he was involved in the development of compounds for the control of ubiquitin-dependent protein degradation. He has published numerous articles and abstracts in the fields of enzymology, cellular immunology, cancer, and neurodegenerative disease. He is also an inventor on several patents and has served as a principal investigator on several NIH-funded SBIR grants.

About Panacea Pharmaceuticals, Inc.

Panacea Pharmaceuticals, Inc. is an emerging biopharmaceutical company focused on utilizing functional genomics and proteomics to develop therapeutics and diagnostics for diseases with substantial unmet clinical need. The Company's product development focus is on novel proteins and biochemical pathways related to cellular regulation and cell cycle abnormalities in oncology as well as both acute and chronic neurodegenerative conditions such as hypoxia-induced cognitive impairment, Parkinson's disease, and Alzheimer's disease.

More information is available at http://www.PanaceaPharma.com.

Except for historical information presented in this press release, matters discussed herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the opinions and estimates of management only as of the date of this release and are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance, or achievements expressed or implied by such statements. Factors that might cause such a difference include, but are not limited to, uncertainties related to our access to capital, the progress, costs, and results of any clinical trials undertaken by us, progress of our research and development projects, and uncertainties related to whether our product candidates would ultimately achieve commercial success. We do not undertake any obligation to update publicly any forward-looking statement, whether as a result of new information, future events, or otherwise unless required by law.