Agreement Focused on Selected Melanocortin Technology;
                         Potential Value $25 Million

    SAN DIEGO, June 19 /PRNewswire/ -- Trega Biosciences, Inc. (Nasdaq: TRGA)
(formerly Houghten Pharmaceuticals, Inc.) and Ono Pharmaceutical Co., Ltd.,
Osaka, Japan, today announced that they have signed a research and development
agreement.  The two companies will focus on identification, development and
commercialization of orally active small molecules for the treatment of
certain diseases mediated by the melanocortin receptor pathway through
cytokine regulation.  The agreement includes a payment upon signing, research
support and potential pre-commercialization milestone payments totaling more
than $25 million upon the successful development of products and, in addition,
the payment of royalties on net sales of commercialized products.
    "We are pleased to be initiating this relationship with Ono, a company
with an international reputation for highly innovative research and quality
products," stated Robert S.  Whitehead, Trega's president and chief executive
officer.  "By combining our complementary scientific and technical expertise
we believe we can more quickly identify, optimize and commercialize new
therapies in a variety of diseases."
    Whitehead continued, "Our partnership will focus on compounds that are
active at a specific melanocortin receptor sub-type (MC-1). This is a receptor
pathway that may play a role in the treatment of a wide range of inflammatory
diseases.  The potential for compounds of this type and for exploitation of
the entire melanocortin pathway offers tremendous promise."
    In exchange for the funding described previously, Trega will screen its
combinatorial chemistry libraries as well as compound files from Ono for
active compounds.  Trega will also be responsible for confirming activity and
function in promising drug candidates. Once drug leads are identified, Trega
will optimize candidates and conduct appropriate pre-clinical testing.  The
work conducted under the partnership will be reviewed by a management
committee composed of representatives from both companies.  Products resulting
from this effort will be exploited by Ono Pharmaceuticals in the Far East, by
both parties in Europe and by Trega in the rest of the world including North
America.
    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.
    Ono Pharmaceutical Co., Ltd. is an Osaka, Japan-based pharmaceutical
company, focusing on research and development of novel drugs and is recognized
as a world leader in prostaglandins and enzyme inhibitors.  Ono was
established in 1717 and is the 12th largest pharmaceutical company ranked by
sales in Japan with fiscal 1997 sales of Yen 126,460 million ($1.02 billion).
    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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