SAN DIEGO, June 19 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA)
and Northwest Neurologic, Inc. (NNL), a privately held biotechnology company
based in Portland, Oregon, announced today that they have entered into a
licensing and drug discovery agreement.  Under the terms of the agreement,
Trega receives a non-exclusive license to patents covering the melanocortin
receptors, a series of receptors with potential application for discovering
new drugs to treat diabetes, obesity and inflammation.  In return, NNL
receives a license fee and non-exclusive access to Trega's combinatorial
chemistry libraries for use with certain targets in its internal drug
discovery programs.  Each company will be obligated to pay to the other
milestones and royalties on any compounds developed and commercialized using
licensed technology.
    "Accessing NNL's melanocortin patents and technology strengthens a
position that Trega has established in this field since 1993," stated Robert
S. Whitehead, president and chief executive officer of Trega.  "We have
expanded our chemistry platform aggressively into robust production of small
molecule libraries in individual compound arrays.  In addition, we have taken
an important step toward doing fully integrated drug discovery in selected
fields of scientific interest.  We expect to deploy our libraries and
biological expertise in partnerships to address a variety of diseases
regulated via the melanocortin pathway similar to the arrangement announced
today with Ono Pharmaceuticals."
    Paul Woloshin, president and chief executive officer of NNL, commented
"Trega has researched the application of melanocortin receptors to drug
discovery for several years and have already discovered a series of
melanocortin active compounds, the most advanced of which is in clinical
trials.  We are pleased to obtain access to Trega's small molecule
combinatorial chemistry expertise which will enhance our own discovery
programs."
    Trega Biosciences is a drug discovery company, utilizing combinatorial
chemistry and other technologies to pursue the discovery of novel, small-
molecule drug therapies.  The company leverages its technology platform by
entering into pharmaceutical alliances, enabling partners to access Trega's
technologies in exchange for licensing fees and potential milestone payments
and royalties, or by establishing joint-discovery alliances with biotechnology
companies.  Trega also uses its drug discovery technologies in its internal
development programs.  HP 228, the company's lead compound, is in Phase II
trials for the treatment of inflammatory and metabolic diseases.
    Northwest Neurologic, Inc. focuses on the use of molecularly cloned
targets to identify new drugs for neurological and endocrine applications.
NNL holds patent rights to several therapeutically relevant drug targets which
include neurotransmitter transporters and melanocortin family receptors.
These form the core technology for the company's drug discovery effort.  In
addition to collaborations with pharmaceutical partners in the areas of stroke
and obesity, NNL is aggressively using its proprietary technologies to develop
treatments for numerous diseases including pigmentation disorders,
glucocorticoid regulation, drug addition, glaucoma and retinal ischemia.
    Except for the historical information contained herein, the matters
discussed in this news release are forward-looking statements that involve
risks and uncertainties, including whether any proposed product can be
successfully formulated, scaled-up, developed, and commercialized, whether
regulatory approvals can be obtained, the impact of competitive products and
pricing, whether any corporate collaborations or alliances will be successful,
and other risks detailed from time to time in Trega's Securities and Exchange
Commission filings.  These forward-looking statements represent Trega's
judgment as of the date of this release.  Actual results may differ materially
from those projected.  Trega disclaims, however, any intent or obligation to
update these forward-looking statements.

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