Anergen Restructures To Focus On Clinical Development

Anergen, Inc. has restructured its operations, discontinuing all of its discovery research programs to concentrate fully on clinical development. The Company's primary focus will be on the development of its AnergiX technology for rheumatoid arthritis. The program is currently in a Phase I clinical trial, which is expected to be completed by early 1999. Further clinical development of AnervaX will depend on corporate partnering, the Company says.

"Throughout the year, Anergen has been actively pursuing sources of funding," said Dr. Barry M. Sherman, president and CEO of Anergen. "Volatility in the marketplace has made it impossible to raise additional funds required to sustain operations at our current level."

The restructuring of Anergen eliminates approximately 65% of its workforce. The remaining employees will focus on clinical development activities and partnering and merger opportunities for the Company.

For more information: Dr. Barry M. Sherman, president and CEO, Anergen, Inc., 301 Penobscot Drive, Redwood City, CA 94063. Telephone: 650-361-8901. Fax: 650-361-8958.