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ALTUS RELEASES UPDATED PLANS FOR TWO TRIALS

July 25, 2006

Altus Pharmaceuticals has updated its plans for starting of Phase III trials of ALTU-135 and ALTU-238. After having successfully completed Phase II trials, Altus had previously planned to initiate Phase III trials for both programs in the second half of this year.

With respect to ALTU-135, an orally administered enzyme replacement therapy, the company now expects to perform additional manufacturing development work in advance of initiating its Phase III trial in patients with pancreatic insufficiency. One of the three lots of ALTU-135 produced using the Phase III manufacturing process showed lower activity for one enzyme. The company has decided to produce and test additional lots before initiating the trial.

For ALTU-238, a long-acting, crystalline form of human growth hormone, the company has recently been notified by one of its suppliers that the delivery of certain equipment for the production of ALTU-238 has been delayed. Altus expects to use this time to develop and qualify additional assays prior to Phase III production of the drug to ensure process reproducibility and product consistency.