PANACOS ANNOUNCES PROPOSED OFFERING OF COMMON STOCK

Panacos Pharmaceuticals, Inc. (Nasdaq: PANC) ("Panacos" or "the Company"), a biotechnology company dedicated to developing the next generation of antiviral therapeutic products, today announced that it has filed a preliminary prospectus supplement to its two shelf registration statements with the Securities and Exchange Commission relating to a proposed underwritten public offering of eight million shares of its common stock. It is currently anticipated that the underwriters will be granted an over-allotment option for an additional 1.2 million shares of common stock.

PR Newswire (http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-28-2005/0004133600&EDATE=)