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KAI Pharmaceuticals Announces Appointment of Chief Medical Officer
August 31, 2005

Dr. Gregory Bell joins KAI as Chief Medical Officer

South San Francisco, CA – August 31, 2005 – KAI Pharmaceuticals Inc., an emerging drug discovery and development company, announced today the appointment of Gregory Bell, M.D. as Vice President of Clinical Research and Development and Chief Medical Officer. Dr. Bell will be responsible for the Company’s development programs, clinical trials, regulatory operations and medical affairs.

Dr. Bell has worked in academic medicine and the biopharmaceutical industry for over fifteen years with extensive experience in both basic and clinical research. Prior to KAI, Dr. Bell served as Vice President of Clinical Development and Clinical Operations at Abgenix, Inc. where he was responsible for managing clinical operations and biometrics for all clinical programs and for leading the clinical development of product candidates in inflammatory and metabolic diseases. Dr. Bell also led the Inflammation Program Team which managed the preclinical portfolio in inflammatory and metabolic diseases.

Prior to Abgenix, Dr. Bell held several positions at Merck & Co., Inc most recently as National Arthritis Medical Director in the Medical and Scientific Affairs department of the U.S. Human Health Division where he was instrumental in developing and implementing clinical and marketing strategies for the COX-2 franchise. Dr. Bell began his career at Merck as Program Manager in Merck Research Laboratories supporting the Cancidas® and Arcoxia® programs. Dr. Bell received his M.D. degree from Cornell University Medical College, is board certified in internal medicine and rheumatology and is an assistant clinical professor of medicine at the University of California, San Francisco.

Steve James, KAI’s president and chief executive officer, stated, "We are pleased to have attracted another highly-skilled individual with significant industry experience to our management team. Greg’s expertise will be extremely valuable as we prepare for the continued development of our lead compound, KAI-9803 for prevention of ischemia induced reperfusion injury in acute myocardial infarction, and additional product candidates for other indications and as we expand our clinical and development infrastructure."

About KAI Pharmaceuticals
KAI Pharmaceuticals is a biology-based, product-driven, drug discovery and development company leveraging protein kinase C (PKC) signaling to generate a portfolio of clinical and preclinical drug candidates for the treatment of acute cardiovascular and other important human diseases. The company is applying its core expertise in the biology of translocation of PKC isozymes to develop highly specific activators and inhibitors of PKC. KAI has received ‘Fast Track’ designation for its lead drug candidate, KAI-9803, currently being investigated in a Phase I/II clinical trial as a treatment to prevent ischemia induced reperfusion injury in acute myocardial infarction. KAI Pharmaceuticals is based in South San Francisco, California, and can be found online at www.KAIpharma.com.