PRESS RELEASE: Celtic Pharma announces Launch of Two New Funds

Celtic Pharma announces Launch of Two New Funds

First Celtic Pharma fund now fully invested

New York, London, Bermuda, 11th December 2007 - Celtic Pharma, the global private equity firm focused on the development of pharmaceuticals and biological drugs, today announces that the firm's principals, Stephen Evans-Freke and John Mayo CBE, are to launch two new follow-on funds targeting the pharmaceutical industry's need for well developed products.  Celtic Pharma's first fund, Celtic Pharmaceutical Holdings L.P., is now over 75% committed and, once new transactions that have agreed term sheets and are in legal documentation have been completed, will be fully invested.

In accordance with its partnership and principals' agreements, one fund, led by Stephen Evans-Freke, will continue with the model of the first fund on a larger scale, buying mid-stage product development programs in order to manage them through late stage development and subsequent auction to the established pharmaceutical and biotechnology companies. The other fund, led by John ayo, will take controlling stakes in biotechnology, small pharmaceutical and special purpose companies, directing the development of key products within the acquired portfolio through to the value inflexion point at the completion of proof-of-principle Phase 2 clinical trials, the point at which pharmaceutical companies wish to buy.

The principals will continue in their current roles with respect to the first fund, as will the existing New York, London and Bermuda based management teams. Separate, more detailed announcements will be made by each of the new funds in due course.

Commenting on today's announcement, Stephen Evans-Freke and John Mayo said:

"In Celtic Pharma's first fund we have assembled a diverse range of projects which are all progressing satisfactorily through clinical development and we believe will create substantial value for our investors.  We have already begun the exit process for some of these products which will gather pace during 2008. Accordingly, it is now an appropriate time to be commencing the launch of new funds - Celtic Pharma's first fund has shown that the private equity model for pharmaceutical investment and development is highly successful and we look forward to replicating this success in our next funds."

About Celtic Pharmaceutical Holdings L.P.

Celtic Pharmaceutical Holdings L.P. ("Celtic Pharma") is a global private equity investment firm focused on the biotechnology and pharmaceutical industries. Celtic Pharma was founded by Stephen Evans-Freke and John Mayo, CBE and is based in Bermuda, with offices in New York and London.  Celtic Pharma acquires and invests in late stage pharmaceutical programs and manages these programs through their development to regulatory approval.  Celtic Pharma's aim is to bridge the gap between the established pharmaceutical companies' new product pipeline crisis and the biotech industry's capital drought.  For further information, please visit Celtic Pharma's website at