KAI Pharmaceuticals Receives $17 Million in Series A Round of Financing

South San Francisco, Calif., December 3, 2003 - KAI Pharmaceuticals, Inc., a privately held drug development company, today announced it has received $17 million in its Series A financing. The round was led by Skyline Venture Partners s and included InterWest Partners, Intersouth Partners and Delphi Ventures.

KAI Pharmaceuticals is utilizing exploiting the insights of Daria Mochly-Rosen, Ph.D., Chair of the Department of Molecular Pharmacology at Stanford University, to develop therapeutics that selectively modulate protein kinase C (PKC), a well validated pharmaceutical target. Previous attempts to develop drugs against this target have failed due to lack of selectivity, resulting in unacceptable levels of activity and/or toxicity. KAI currently has more than 20 compounds, many of which are expected to be advanced towards the clinic.

Human Clinical studies are expected to begin in 2004. The first investigational agent is designed to prevent reperfusion injury associated with acute heart attack. The second drug is designed as a prophylactic agent in patients at risk for ischemic injury. Pre-clinical studies suggest activity for both in cardiac and neurological ischemia. These compounds are covered by numerous patents and patent applications.

“We are delighted our investors recognize the potential benefits of this outstanding science. This successful financing positions KAI to emerge as one of the most exciting new biotechnology companies,” said Dr. Paul Auerbach, KAI’s Chief Operating Officer. “KAI addresses drug targets and health conditions with a novel approach that may have an enormous impact upon improving human health.”

About KAI Pharmaceuticals, Inc.

KAI Pharmaceuticals, with headquarters in South San Francisco, California, addresses unmet medical needs with the development of therapeutics that selectively modulate protein kinase C (PKC) enzymes without simultaneous activation or inhibition of closely related enzymes. For more information, visit the company’s web site at http://www.kaipharmaceuticals.com.

Binay Curtis
Galaxy Six Strategies for KAI Pharmaceuticals
(415) 346-6661 binay@galaxysix.com