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ARROW MAKES DEAL WITH NOVARTIS

June 30, 2005

Arrow Therapeutics announced a deal with Novartis, involving the development and commercial sale of its small molecule inhibitor A60444 for the treatment of respiratory syncytial virus. Under the terms of the agreement Novartis will undertake most of the further development and all commercialisation activity for the compound, which is currently undergoing Phase II clinical trials. Novartis will fund all future work on the project.

Canada NewsWire Group (http://www.newswire.ca/en/releases/archive/June2005/30/c7230.html)