October 31, 2000

Company Press Release

Galileo Laboratories Closes $31 Million Private Financing

New Investors Include North Castle Partners, H&Q Life Sciences/Healthcare and Sofinov

Santa Clara, CA, October 31, 2000 – Galileo Laboratories, Inc. announced today a third-round venture financing of $31 million. New investors joining lead investor North Castle Partners include H & Q Life Sciences and H & Q Healthcare, Sofinov, and The Chatterjee Group. Also participating are existing investors including Alloy Ventures, Brinson Partners, Bay City Capital and CMEA Life Sciences. The financing will support Galileo's nutrition and pharmaceutical programs, including its recently launched clinical study in type 2 diabetes.

“In addition to providing growth capital, North Castle Partners and H&Q Life Sciences bring important strategic dimensions to Galileo,” said Guy Miller, CEO. “Through North Castle’s leadership in the wellness sector and H&Q’s preeminence in technology, Galileo is in a strong position to advance Galileo’s commercial and technical objectives.”

Mr. Douglas Lehrman, Managing Director, North Castle Partners, has joined Galileo’s Board of Directors. North Castle Partners owns Leiner Health Products, EAS, Enzymatic Therapy, Grand Expeditions, and Saratoga Beverage Group, gaining prominence as an investor in the healthy-living consumer segment. “We saw in Galileo a technical R&D skill set complementary to our consumer marketing and distribution competencies,” said Mr. Lehrman. “Both Galileo and North Castle Partners share a commitment to bring consumers products which enhance wellness and prevent disease progression.”

About Galileo Laboratories

Galileo Laboratories is focused on discovering and developing pharmaceutical and nutritional products to treat and prevent oxidative and metabolic stress associated with chronic conditions such as cardiovascular disease and diabetes. The company has developed proprietary cell-based models of human metabolism that enable the discovery of pharmaceutical and nutritional leads. The company has agreements with Pfizer/Warner-Lambert and Procter & Gamble.

Contact

Peter Leighton, Vice President Marketing
Galileo Laboratories, Inc.
408.654.5830 x 107
pleighton@GalileoLabs.com