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June 15, 1999

Company Press Release

Galileo Laboratories Raises $11 Million in a Private Placement

Bay City Capital Leads Financing

Santa Clara, CA, June 15, 1999 – Galileo Laboratories, Inc., a privately held life science company focused on the discovery and development of proprietary evidenced-based nutritionals and pharmaceuticals designed to moderate the adverse effects of energetic disruptions in biological systems, today announced it raised $11 million in a private placement of preferred stock. The financing was led by Bay City Capital through its North American Nutrition and Agribusiness Fund. As part of this transaction, Mr. Roger Salquist, a Managing Director of Bay City Capital, will join Galileo’s Board of Directors. Bay City Capital joined existing investors, Alloy Ventures and Brinson Partners as well as a new investor – CMEA Ventures.

“We are pleased to have Bay City Capital and CMEA as new investors. The wealth of expertise that the Bay City Capital team brings to bear in the life science sector is formidable from both the technical and business development perspectives. The addition of Roger Salquist to the Board of Directors will allow Galileo to draw on his considerable knowledge and experience within the nutrition sector as we expand Galileo’s Cell Energy Discovery Platform(TM) into the nutritional and AgBio markets,” said Dr. Miller, Chairman & CEO of Galileo Laboratories.

Mr. Salquist, a founder of Bay City Capital, is the Chief Investment Officer of the company’s North American Nutrition and Agribusiness Fund (NANAF). From 1984 through 1996, he served as the Chairman and Chief Executive Officer of Calgene, Inc., an agribusiness biotechnology company located in Davis, California that was subsequently acquired by Monsanto Corporation. Mr. Salquist is Chairman of the Board of Directors of Endosonics Corporation and a Board member of Akkadix Corporation and Myelotec, Inc. “As Bay City Capital worked with Galileo’s management to put this transaction together, we became convinced that Galileo is uniquely positioned as a discovery engine of novel and scientifically validated ingredients and nutritional supplements. We look forward to contributing as an investor and as an active member of the Board of Directors to ensure Galileo’s success,” said Mr. Salquist.

About Galileo Laboratories

Galileo Laboratories, Inc. is focused on the discovery of compounds that moderate the effects of oxidative stress and energetic perturbations on living biological systems. The company will develop these compounds alone, or in combination, as food ingredients, nutritional supplements, medical foods and pharmaceuticals. While severe oxidative stress plays a role in ischemic conditions such as heart attack and stroke, milder conditions of oxidative stress have been linked to the development and pathogenesis of cardiovascular disease [CVD] and aging. As its first product development focus, Galileo plans to target the prevention and treatment of CVD by developing ingredients and nutritional supplements formulated to reduce the oxidative stress component of CVD. Going forward, the company will develop other nutritional products outside of the cardiovascular setting. These will be targeted at systemic inflammatory response syndrome [SIRS], aging, and the performance-sport market. Galileo has developed its Cell Energy Discovery Platform(TM) technology consisting of unique and proprietary cell-based assays and algorithms for the identification and optimization of cytoprotective nutritionals and pharmaceuticals.

About Bay City Capital

Bay City Capital LLC is a private merchant bank based in San Francisco. BCC focuses exclusively on the life sciences industry, providing investment capital to pre-public and public companies, actively participating on corporate boards, and providing partnering, strategic analysis and management advisory services. NANAF is one of the interconnected regional funds operating under the umbrella of the $500M Gilde Global Food and Agribusiness Fund established by Gilde Investment Management B.V. of Utrecht, The Netherlands. Bay City Capital LLC is the exclusive investment advisor to NANAF.

Contact

Peter Leighton, Vice President Marketing
Galileo Laboratories, Inc.
408.654.5830 x 107
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