September 29, 2005, North Brunswick, NJ - Provid Announces New National Cancer Institute Contract

Provid Pharmaceuticals Inc. announces the award of a $750,000 phase II SBIR contract by the National Cancer Institute.  The NCI and Provid will collaborate on a number of oncology targets over the next two years. Provid will apply its hypothesis-driven drug discovery chemistry to translate the assay hits into viable drug candidate leads for applications in cancer therapy.  These projects emerged from the efforts of the Developmental Therapeutics Program Screening Technologies Branch at NCI, where small molecule assay hits have been identified and are ready for medicinal chemistry validation and optimization.

Dr. Gary Olson, Provid CEO, discussed the new contract.  "We are excited about the expansion of Provid’s role with the NCI to help discover drugs for cancer therapeutics, and with the opportunity to collaborate with the scientists who have uncovered the new research targets. The program is a great opportunity for Provid, and we value the confidence that the NCI has placed in us."  

Provid Pharmaceuticals is a chemistry-based drug discovery company located in North Brunswick, New Jersey.  The company works with biotech and pharmaceutical companies, academic groups, and research institutes to help develop small molecule drug leads for their targets.  Provid also has a leading position in peptide mimetics technology and expertise in structure-based drug design, biochemical assays, and all aspects of medicinal chemistry.  The company has also applied its technology in internal programs in autoimmune disease therapeutics, where it has candidates at preclinical stages for multiple sclerosis, rheumatoid arthritis, and celiac disease.  More information is available at the company’s web site, www.providpharma.com.   

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995 regarding Provid’s future activities and the potential for discovery of drug compounds, and involve a high degree of material risks and uncertainties. Many possible factors could affect future results and performance of Provid’s research and development activities, and ability to develop pharmaceuticals based on the company’s technology and the NCI targets.  If Provid’s efforts fail to perform as expected, or if any of a wide range of other risk factors are encountered and not surmounted, the company’s financial condition and operating results may be materially and adversely effected.