POSITIVE MEMANTINE TRIAL RESULTS IN DEMENTIA § ALZHEIMER'S PUBLISHED

           In International Journal of Geriatric Psychiatry 

Phase III Trial Sponsored by Merz + Co. GmbH & Co. of Frankfurt, Germany,

Corporate Collaborator of NTI(R)

RICHMOND, Calif., March 3 /PRNewswire/ -- Neurobiological Technologies, Inc. (OTC Bulletin Board: NTII) today announced positive results in a Phase III human clinical trial of Memantine in Europe sponsored by its corporate collaborator Merz + Co. GmbH & Co. of Frankfurt, Germany (Merz). In this trial, severely demented subjects treated with Memantine had statistically significant improvement compared to placebo in internationally accepted measures of functional independence, including bathing, dressing and self-care. The data are presented in the current issue of the peer-review International Journal of Geriatric Psychiatry, a publication of John Wiley & Sons.

In April 1998, NTI(R) entered into a strategic research and marketing agreement with Merz to further the development and commercialization of Memantine. Pursuant to this agreement, NTI(R) will share in future revenue from potential sales of Memantine for treatment of multiple medical conditions, including severe dementia.

In Merz's double-blind, placebo-controlled trial, 166 elderly, care-dependent, and severely demented patients were randomized to receive a 10mg oral dose of Memantine or placebo for 12 weeks. All patients were diagnosed with primary dementia: 49% with Alzheimer's disease (AD) and 51% with vascular or mixed-type dementia. Subjects' motor performance and functional independence were assessed after 4 and 12 weeks of treatment using two standard scales. The effect of Memantine, as evaluated on both scales, resulted in statistically significant improvement compared to placebo. Functional evaluations performed by physicians and nursing staff included ability to move, wash, bathe and dress, as well as the ability to recognize persons and participate in group activities. Memantine was well-tolerated and no significant side effects were reported.

"We are pleased by the publication of these Phase III Alzheimer's results," said Paul E. Freiman, president and chief executive officer of NTI(R), "indicating Memantine's promise in treating dementia. Merz and NTI(R) are collaborating to further the clinical development of Memantine, an oral drug with a history of safe clinical use in Germany. In addition to Merz's Alzheimer's program, this clinical development effort includes The company's Phase IIB trial of Memantine for painful diabetic neuropathy, as well as a Phase II trial of Memantine for the treatment of AIDS dementia conducted by the AIDS Clinical Trials Group of the NIH."

Memantine is an orally-deliverable compound that appears to restore the function of impaired neurons by modulating activity of the NMDA receptor, integral to the proper function of the membranes of such cells. Such restoration of function may inhibit injured or damaged neurons from firing abnormally, a pathological process associated with many neurological conditions, including senile dementia, Alzheimer's disease, neuropathy and AIDS dementia. Since 1989, Memantine has been marketed by Merz in Germany with the labeling "dementia syndrome."

Severe dementia is characterized by the progressive decline of motor and cognitive skills associated with multiple central nervous system disorders, chiefly neurodegenerative conditions such as AD. According to the National Institutes of Health, approximately 4 million people are currently affected by AD in the United States. There are currently no approved treatments indicating clinical benefits in patients with severe AD.

Merz + Co. is a leading, privately owned German pharmaceutical company that develops, manufactures and markets pharmaceutical products worldwide for the treatment of central nervous system (CNS) disorders and metabolic diseases. The company's Pharma Division markets AKATINOL MEMANTINE(R) for the treatment of primary dementia, PK-MERZ(R) and PK-LEVO(R) for Parkinson's disease, HEPA-MERZ(R) for liver disease, LIPO-MERZ(R) for impaired fat metabolism, as well as several other products.

NTI(R) is an emerging drug development company focused on the clinical evaluation and regulatory approval of neuroscience-based drugs. The company's strategy is to in-license early-stage drug candidates; oversee human clinical trials to evaluate preliminary evidence of efficacy; and seek partnerships with pharmaceutical and biotechnology companies for late-stage development and marketing. In addition to developing Memantine, NTI(R) is developing XERECEPT a, an anti-edema agent, for peritumoral brain edema (swelling of the brain caused by a tumor). XERECEPT has been granted orphan drug designation by the FDA.

NOTE: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including NTI's ability to properly design, implement and complete planned trials, meet regulatory requirements, demonstrate safety and efficacy for its products, manage third party contractors, and avoid infringement of third-party proprietary rights, as well as other risks detailed from time to time in the company's Securities and Exchange Commission filings. Actual results may differ materially from those projected. These forward-looking statements represent the company's judgment as of the date of the release. The company disclaims, however, any intent or obligation to update these forward-looking statements. SOURCE Neurobiological Technologies, Inc.

-0-                             03/03/99 /CONTACT:  Paul E. Freiman, 
President & Chief Executive Officer of Neurobiological Technologies, 
Inc., 510-215-8000; or Victor Libet of Russell-Welsh, Inc., 
650-312-0700, ext. 25, for Neurobiological Technologies, Inc./ 

/Company News On-Call: http://www.prnewswire.com/comp/113039.html or fax, 800-758-5804, ext. 113039/

/Web site: http://www.ntii.com/ (NTII)
CO: Neurobiological Technologies, Inc.; Merz + Co. GmbH & Co. ST:
California, Germany IN: MTC SU: