Phytopharm: Yamanouchi Terminates Licensing Deal

March 29, 2005

Phytopharm announced that it has received confirmation from Yamanouchi Pharmaceutical Co. that as a result of a portfolio review arising out of the merger of Yamanouchi with Fujisawa Pharmaceutical Co., Yamanouchi is to terminate the licensing agreement, covering Japan and some other Asian countries, in connection with Cogane (PYM50028), Phytopharm's candidate product for the treatment of Alzheimer's disease.