Nyon, Switzerland, November 16th 2005. Xytis Pharmaceuticals Ltd. (privately held CNS Company) announced today the dosing of the first volunteers in a Phase I clinical trial of XY 2401.

This Phase I clinical trial is a placebo-controlled, randomized, single-dose escalating study to evaluate the safety, tolerability and pharmacokinetic profile of XY 2401 in 48 healthy volunteers in a single European centre. The Company plans to announce results from the study during the second quarter of 2006.

“XY 2401 has the potential to create a paradigm shift in the treatment of schizophrenia, specifically in patients with negative symptoms and cognitive impairment,” said Dr. Werner Tschollar, CEO of Xytis Pharmaceuticals.

“XY 2401 exhibits a dual mode of action as a positive allosteric enhancer of the NMDA receptor function, and as a selective norepinephrine reuptake inhibitor. The compound’s dual pharmacological mode of action addresses the NMDA-receptor hypofunction hypothesis in schizophrenia and neurotransmitter regulation in depression,” said Prof. Patrick Nef, CSO of Xytis Pharmaceuticals.

XY 2401 is an oral, small molecule NCE and is primarily targeted for the treatment of negative symptoms and cognitive deficits in schizophrenia, for which currently available medications have sub-optimal safety and efficacy.

Seeking new approaches to cure Schizophrenia

Schizophrenia is a devastating CNS disorder, affecting about 1% of the population world-wide, resulting into a major social burden. Clinical manifestations of schizophrenia include positive and negative symptoms, and cognitive deficits such as reduced emotional expression capability, impaired concentration, diminished thought and speech productivity, and reduced pleasure. These symptoms are often associated with clinical aspects of major depressive disorders.

Current treatments seem to effectively treat positive symptoms but have limited or no efficacy on negative symptoms and cognitive deficits. XY 2401 potentially restores glutamatergic functions and therefore represents a valid approach to address negative symptoms and cognitive deficits in schizophrenia.

About the Company

Xytis Pharmaceuticals Ltd. is a CNS pharmaceutical company focusing on the clinical development of innovative drug candidates, addressing with novel pharmacology, major unmet medical needs and substantial markets. Xytis Pharmaceuticals is expanding its portfolio of CNS compounds, developing a network of world class partners and hiring outstanding professionals in order to build an effective, worldwide, fully integrated, pharmaceutical drug development organization. The Company is registered in the UK with operations in Nyon, near Geneva in Switzerland.

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