EpiCept Discontinues Drug Discovery Operations and Reduces Workforce

EpiCept Discontinues Drug Discovery Operations and Reduces Workforce 

Resources to Focus on Ceplene® and Clinical Pipeline 



TARRYTOWN, N.Y.--(BUSINESS WIRE)-- EpiCept Corporation (Nasdaq and OMX Nordic
Exchange: EPCT) announced today that it is discontinuing all drug discovery
activities and implementing an approximate 65% reduction in its workforce.
EpiCept will direct its resources toward the registration of Ceplene® in North
America and clinical development programs. When complete, these actions are
expected to reduce annual expenses by at least $5.5 million. 

“This is a difficult decision and is largely attributable to the current
financing environment, but in taking these actions we will help ensure that
EpiCept has the resources to execute our development strategies for our most
advanced opportunities," stated Jack Talley, President and Chief Executive
Officer of EpiCept. "We are currently focused on partnering Ceplene® in Europe
and pursuing regulatory approval of Ceplene in the U.S. and Canada. In addition,
we look forward to advancing our other drug candidates through key clinical
trials, such as our Phase 1b development program for EPC 2407 in patients with
advanced solid tumors and lymphomas."

Under the workforce reduction plan, most of the affected positions will be
eliminated immediately and the remainder will be eliminated over the next three
to six months. The Company expects to incur a one-time charge during the first
quarter of 2009 of approximately $2.5 million in connection with the closing of
the San Diego facility. EpiCept plans to offer the proprietary ASAP drug
discovery technology for sale or partnering to an interested party. 

Mr. Talley continued, "We greatly appreciate the dedication and significant
contributions of the employees affected by this decision, particularly those who
were with Maxim during the initial development of Ceplene."

About EpiCept Corporation 

EpiCept is focused on unmet needs in the treatment of cancer and pain. The
Company's broad portfolio of pharmaceutical product candidates includes
Ceplene®, a cytokine immunomodulator that recently received marketing
authorization in Europe for the remission maintenance of AML patients, and
several pain therapies in clinical development. 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 news release and any 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 which express plans, anticipation,
intent, contingency, goals, targets, future development and are otherwise not
statements of historical fact. These 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 we may not realize our anticipated cost savings, the
risks associated with the adequacy of our existing cash resources, 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 Ceplene® will not receive regulatory approval or
marketing authorization in the U.S. or Canada, the risk that Ceplene® will not
be launched in Europe in the first half of 2009 or achieve significant
commercial success, the risk that we are unable to find a suitable marketing
partner for Ceplene® on attractive terms, a timely basis or at all, the risk
that any required post-approval clinical study will not be successful, the risk
that EpiCept will not be able to maintain its final regulatory approval or
marketing authorization, the risk that Myriad's development of Azixa™ will not
be successful, the risk that Azixa™ 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 we will not be able to find a buyer for our ASAP technology, the
risk that clinical trials for NP-1, including our current clinical trial in PHN,
or EPC-2407 will not be successful, the risk that NP-1 or EPC-2407 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 other product candidates, the risks associated with our 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; 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. 


EpiCept Corporation
Robert W. Cook, 914-606-3500
rcook@epicept.com
ot
Media:
Feinstein Kean Healthcare
Greg Kelley, 617-577-8110
gregory.kelley@fkhealth.com
or
or
Investors:
Lippert/Heilshorn & Associates
Kim Sutton Golodetz, 212-838-3777
kgolodetz@lhai.com
or
Bruce Voss, 310-691-7100
bvoss@lhai.com