SAN DIEGO – June 2, 2005 – Verus Pharmaceuticals, Inc., a pediatric-oriented company dedicated to identifying, developing and delivering solutions to address the unmet medical needs of children and those who care for them, today announced the complete formation of its core management team and the relocation of the company. The management team consists of: Cam L. Garner, Chairman and Chief Executive Officer; Robert W. Keith, President and Chief Operating Officer; Richard G. Vincent, Chief Financial Officer; Paul E. Cayer, Senior Vice President, Corporate Development; Malcolm R. Hill, Pharm. D., Senior Vice President, Research and Development; Elaine M. Phillips, Ph.D., Senior Vice President, Technical Operations; and Peter W. Schineller, Senior Vice President, Sales and Marketing. Verus’ new headquarters is a 13,000 square foot facility located in San Diego that will accommodate its rapidly expanding team.

“With our core management team in place, we are well-positioned to execute our business strategy of providing solutions for the unmet medical needs of children, with an initial focus on the treatment of asthma, allergies, and related diseases and conditions,” said Cam L. Garner. “This is a market of significantly underserved patients, caregivers and prescribers. The need for new and enhanced treatments tailored to the specific needs of the pediatric patient is recognized by opinion leaders and regulatory bodies. As such, we believe this situation provides us the opportunity to build a leadership position in an attractive, high growth market. We are committed to establishing ourselves as the partner of choice for developing and commercializing novel, pediatric-oriented products.”

“We could not be more pleased with the team we have brought together,” said Robert W. Keith. “This group has extensive experience in building and growing specialty pharmaceutical companies, and has an unrivaled set of competencies in acquisitions and alliances, as well as in development and commercialization. We are confident this execution-savvy team will rapidly and successfully launch our entry into the U.S. market and will continue to identify, develop and commercialize solutions for the pediatric patient.”

About Verus

Verus Pharmaceuticals is dedicated to improving the lives of children and those who care for them. Verus is building a portfolio of products for the unmet medical needs of children through acquisitions and alliances, with an initial focus on the treatment of asthma, allergies, and related diseases and conditions. Verus is differentiated by its pediatric orientation and its strong financial position and experienced management team, which allows the company to capitalize on an extensive network to build its product portfolio and pursue complementary transactions. The company’s rigorous, disciplined approach to strategic decision-making and core competencies in development and commercialization is expected to provide significant value to its partners. More information about Verus is available on the company’s website at www.veruspharm.com.

Forward-Looking Statements

Verus Pharmaceuticals cautions you that statements included in this press release that are not a description of historical facts may be forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by Verus that any of its plans will be achieved. Actual results may differ materially from those set forth in this press release due to the risks and uncertainties inherent in Verus’ business including, without limitation, statements about: its ability to identify appropriate acquisition, licensing, or co-development and/or promotion candidates in the future or be able to take advantage of the opportunities it identifies; difficulties or delays in developing, obtaining regulatory approval, manufacturing and commercializing its products; unexpected performance or side effects of its products that could delay or prevent development or commercialization, or that could result in recalls or product liability claims; the scope and validity of patent protection for its products; competition from other pharmaceutical companies; and its ability to obtain additional financing to support its operations. All forward-looking statements are qualified in their entirety by this cautionary statement and Verus undertakes no obligation to revise or update this press release to reflect events or circumstances after the date hereof.