For Immediate Release

OCULEX PHARMACEUTICALS RAISES $50 MILLION THROUGH PRIVATE FINANCING

Funds Targeted to Complete Clinical Development of Lead Product, Posurdex™

October 22, 2002

SUNNYVALE, CA, -- Oculex Pharmaceuticals, Inc., a privately-held specialty pharmaceutical company focused on the development and commercialization of novel proprietary intraocular pharmaceuticals and drug delivery systems, announced the completion of a $50 million round of private financing led by the Perseus-Soros BioPharmaceutical Fund and Bay City Capital. Other investors included Granite Global Ventures, Venture TDF, and BioAsia Investments. Credit Suisse First Boston acted as the placement agent for this transaction. Funds will be targeted to complete clinical development of Oculex's lead product, Posurdex™, currently in phase 2 clinical trials for the treatment of persistent macular edema.

With the closing of this financing, Oculex also announced the appointment of a new Board of Directors. Joining the board with the close of the financing are Steve Elms, Managing Director, Perseus-Soros BioPharmaceutical Fund, Carl Goldfischer, M.D., Managing Director, Bay City Capital, and Song T. Tjoa, Executive Director, Greatland Company, Pte. Ltd. Current board members continuing to serve as directors are Mark S. Blumenkranz, M.D., Chairman, Stanford University Dept. of Ophthalmology, Lester J. Kaplan, Ph.D., President, Research & Development, Allergan, Frank Kung, Ph.D., Managing General Partner, BioAsia Investments and Thomas Ng, Ph.D., Founder & Managing Director, Venture TDF.

"Oculex has an innovative, patented technology for delivering drugs to the back of the eye and we are eager to move forward with the company's clinical research program and bring its lead product, Posurdex™, currently in Phase 2 trials, to market," said new Chairman of the Board, Steve Elms. "This new board brings together a highly experienced group of individuals who can guide Oculex through its next critical growth phase."

Board member Les Kaplan, President, Research and Development of Allergan, a global health care company with which Oculex formed a development collaboration in May 2001 commented, "We are very pleased with the progress Oculex has made on our joint development projects. Oculex's novel drug delivery technology is consistent with our efforts to develop breakthrough therapeutic approaches to treating serious ophthalmic diseases and conditions."

"We are very pleased with the successful placement of this round of financing. This demonstrates investor confidence in our lead product candidate, Posurdex™, as well as our platform technology and proprietary know-how," said David A. Weber, Ph.D., Executive Vice President at Oculex. "These funds will enable us to complete the clinical development of Posurdex™ for the treatment of a serious sight-debilitating condition for which there is no currently approved treatment."

About Posurdex™

Posurdex™ is based on the company's proprietary biodegradable intraocular drug delivery technology. It is the only biodegradable intraocular product designed to provide sustained drug therapy for an extended period of time. This unique, micro-sized product is inserted directly inside the eye by a physician to ensure that therapeutic levels of medication are delivered to the targeted site over a predetermined amount of time.

About Oculex

Oculex Pharmaceuticals, Inc., headquartered in Sunnyvale, California, is a leading ophthalmic drug delivery company that has created a novel and proprietary platform technology to facilitate the treatment of major sight-threatening eye diseases and conditions. Its proprietary drug delivery system is the first biodegradable, sustained-release system designed to deliver drugs directly into the eye. The Company is using this unique platform technology to develop and commercialize its own proprietary brand name products that contain well-established generic compounds. In addition, Oculex is collaborating with key strategic partners to develop and commercialize proprietary compounds for ophthalmic use. For further information, please visit Oculex's website at http://www.oculex.com.

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