EpiCept and GNI Partner to Develop Anti-Viral Hepatitis Drug in Asia

EpiCept and GNI Partner to Develop Anti-Viral Hepatitis Drug in Asia

    TOKYO & TARRYTOWN, N.Y.--(BUSINESS WIRE)--July 17,
2008--Regulatory News:

    GNI Ltd, a leading biopharmaceutical company in Japan and China,
and EpiCept Corporation (Nasdaq and OMX Nordic Exchange: EPCT), a
US-based specialty pharmaceutical company, announced today that they
have reached agreement to develop a new therapeutic drug, EP1013, in
Asia, Australia, and New Zealand, for late-stage viral
infection-induced hepatitis. EpiCept will retain the rights in the
rest of the world. GNI's wholly owned subsidiary, Shanghai Genomics,
will start preparation for pre-IND and clinical development in China
immediately.

    In return for granting a license to GNI to develop EP1013, EpiCept
earned an upfront license fee and will be eligible to earn milestone
payments and royalties on commercial sales.

    EP1013 is a di-peptide small molecule compound with potent and
irreversible inhibitory effect on caspases, a class of enzymes
critical for cell death and inflammatory response. Initial tests of
EP1013 by EpiCept and Shanghai Genomics have shown promising efficacy
in animal models of liver failure, brain ischemia, and myocardial
infarction. EP1013 was discovered by EpiCept scientists and is covered
by patents in the U.S., China, and other key markets.

    Liver disease is a "national" disease in China with more than 20
million people affected by HBV virus infection. The late stage of HBV
infections is characterized by the dysfunction of liver cells and
eventual cell death. Although liver transplantation may help some
patients, it is costly and requires a long waiting period. Inhibiting
liver cell death may help the liver to recover function. A novel
therapy for liver disease represents a large market opportunity for
GNI in China and Japan. GNI intends to complete toxicology and PK
studies to prepare for an IND filing with the Chinese SFDA as soon as
possible.

    Dr. Ying Luo, Chief Executive Officer of GNI and Shanghai
Genomics, said, "Both in-house development and external co-development
are important components of our R&D strategy. EP1013 is complementary
to F351, our first drug candidate in Phase I trial for liver fibrosis.
Developing these two products in Asia will establish us as a leading
player in liver disease therapy.""We are pleased to establish this collaboration to accelerate the
development of EP1013 for a therapeutic area which is outside of our
core focus areas in oncology and pain management. Caspase inhibitors
may provide a new therapeutic modality for the treatment of
degenerative diseases that involve apoptotic cell death," added Jack
Talley, President and CEO of EpiCept.

    About GNI

    Founded in 2001, GNI is a clinical-stage drug development company
with headquarters in Japan and major operation China. After years of
discovery research, the Company has built a portfolio of drug
candidates in cancer and inflammatory disease areas. In June 2005, GNI
acquired Shanghai Genomics, which operates an integrated drug
discovery and development platform in Shanghai, China. The combined
strength of GNI and Shanghai Genomics has resulted in research
collaboration with major international pharmaceutical companies. The
Company is also in the process of acquiring Hengshan Pharmaceuticals,
which has more than 15,900 square meter Chinese SFDA certified GMP
manufacture facility near the central Shanghai and nationwide
sales/distribution network in China. For further information, please
visit www.gnipharma.com and www.shanghaigenomics.com.

    About EpiCept

    EpiCept is focused on unmet needs in the treatment of cancer and
pain. The Company's broad portfolio of pharmaceutical product
candidates includes several pain therapies in clinical development and
a lead oncology compound for AML with demonstrated efficacy in a Phase
III trial; a marketing authorization application for this compound
recently received a negative opinion and is being re-examined in
Europe. In addition, EpiCept's ASAP technology, a proprietary live
cell high-throughput caspase-3 screening technology, can efficiently
identify new cancer drug candidates and molecular targets that
selectively induce apoptosis in cancer cells. Two oncology drug
candidates currently in clinical development that were discovered
using this technology have also been shown to act as vascular
disruption agents in a variety of solid tumors.

    Forward Looking Statements

    This press release and oral statements made with respect to the
information contained in this news release, contains "forward-looking"
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements include statements
related to GNI's plans to pursue development of product candidates and
the timing thereof. Any statements contained in this press release
that are not statements of historical fact may be deemed to be
forward-looking statements. Words such as "continue,""could,""may,"
and similar expressions are intended to identify these forward-looking
statements. There are a number of important factors that could cause
GNI's results to differ materially from those indicated by these
forward-looking statements, including risks associated with the timing
and success of clinical trials and the commercialization of product
candidates. GNI does not undertake any obligation to update
forward-looking statements.

    Some forward-looking statements are based on EpiCept's current
expectations and are subject to risks and uncertainties that could
cause actual results or developments to be materially different from
historical results or from any future results expressed or implied by
such forward-looking statements. Factors that may cause actual results
or developments to differ materially include: the risk that EP1013
will not be developed successfully or that EpiCept will not receive
any future payments under the license agreement with GNI, the risks
associated with the adequacy of our existing cash resources and our
need to raise additional financing to continue to meet our capital
needs and our ability to continue as a going concern, the risks
associated with our ability to continue to meet our obligations under
our existing debt agreements or that we may default on our loans or
that our lenders may declare the Company in default or that our
secured lender would seek to sell our assets, the risk that the
Company's securities may be delisted by The Nasdaq Capital Market or
the OMX Nordic Exchange and that any appeal of the delisting
determination may not be successful, the risk that our appeal of the
negative opinion regarding the MAA for Ceplene(R) will not be
successful and that Ceplene(R) will not receive regulatory approval or
marketing authorization in the EU, the risk that Ceplene(R), if
approved, will not achieve significant commercial success, the risk
that Myriad's development of AzixaTM will not be successful, the risk
that AzixaTM will not receive regulatory approval or achieve
significant commercial success, the risk that we will not receive any
significant payments under our agreement with Myriad, the risk that
the development of our other apoptosis product candidates will not be
successful, the risk that our ASAP technology will not yield any
successful product candidates, the risk that clinical trials for NP-1
or EPC2407 will not be successful, the risk that NP-1 or EPC2407 will
not receive regulatory approval or achieve significant commercial
success, the risk that our other product candidates that appeared
promising in early research and clinical trials do not demonstrate
safety and/or efficacy in larger-scale or later stage clinical trials,
the risk that we will not obtain approval to market any of our product
candidates, the risks associated with dependence upon key personnel,
the risks associated with reliance on collaborative partners and
others for further clinical trials, development, manufacturing and
commercialization of our product candidates; the cost, delays and
uncertainties associated with our scientific research, product
development, clinical trials and regulatory approval process; our
history of operating losses since our inception; the highly
competitive nature of our business; risks associated with litigation;
risks associated with prior material weaknesses in our internal
controls; and risks associated with our ability to protect our
intellectual property. These factors and other material risks are more
fully discussed in EpiCept's periodic reports, including its reports
on Forms 8-K, 10-Q and 10-K and other filings with the U.S. Securities
and Exchange Commission. You are urged to carefully review and
consider the disclosures found in EpiCept's filings, which are
available at www.sec.gov or at www.epicept.com. You are cautioned not
to place undue reliance on any forward-looking statements, any of
which could turn out to be wrong due to inaccurate assumptions,
unknown risks or uncertainties or other risk factors.

    EPCT-GEN

    *Azixa is a registered trademark of Myriad Genetics, Inc.


For GNI Ltd.
             Mayumi Higuchi, +81 (03) 3580-0751
             ir@gene-networks.com
             or
             Ying Luo, +86 1381-769-8961
             bd@shanghaigenomics.com
             or
             For EpiCept Corporation
             Robert W. Cook, +1 914-606-3500
             rcook@epicept.com