Biotech Firm Spherics Relocating to Massachusetts and Building
Manufacturing Facility, $2.5M Emerging Technology Fund Loan Clinches
the Deal

BOSTON Aug. 12, 2005 MassDevelopment, Spherics, Inc., the
Massachusetts Biotechnology Council (MBC), the Massachusetts Office
of Business Development, and the Massachusetts Alliance for Economic
Development today announced that Rhode Island-based Spherics will
relocate to Massachusetts. The company will move its headquarters
and research operations to Mansfield, as well as build a clinical
scale manufacturing facility.

In connection with the move, Spherics will receive a $2.5 million
loan from MassDevelopment's Emerging Technology Fund (ETF), the
largest ETF loan granted to date.

"Creating and fostering a business-friendly environment attracts
companies like Spherics," said Ranch C. Kimball, Governor Mitt
Romney's secretary of economic development and chair of
MassDevelopment. "Spherics' move is a tangible result of the
combined and coordinated efforts of the public and private sectors
to highlight the benefits of locating in Massachusetts."

Spherics is developing oral pharmaceutical products with improved
therapeutic profiles by applying its proprietary drug delivery
platform technologies. The Company's novel delivery technologies
improve drug performance by increasing absorption and residence time
in specific regions of the gastrointestinal tract. Spherics recently
raised $26.4 million in venture capital led by Advent International
of Boston to advance its clinical pipeline, which is principally in
the areas of central nervous system conditions, gastrointestinal
disorders, and cancer.

"This is a great win for Massachusetts," said Robert L. Culver,
MassDevelopment president/CEO. "Spherics is exactly the type of
company the legislature hoped to attract when it created the
Emerging Technology Fund. The firm's decision to relocate to
Massachusetts is a testament to the strength of our life sciences
community and the quality of our workforce in attracting companies
that are moving from research and development into manufacturing."

Capitalized by the state legislature last year, the Emerging
Technology Fund helps technology-based businesses locate and expand
in the Commonwealth. The fund targets companies that are ready to
transition from research and development to production. It provides
loans and loan guarantees for buying equipment, renovating leased
space or purchasing and expanding facilities.

The MBC and the state worked together to demonstrate the
Commonwealth's competitiveness. The Massachusetts team also worked
closely with Spherics and the town of Mansfield to identify a
suitable site for its new headquarters and manufacturing facility.

"Spherics' decision highlights the importance of the partnership
between state government and the biotechnology industry to sustain
Massachusetts' competitive advantage," said Thomas M. Finneran,
president of the Massachusetts Biotechnology Council. "Through our
collective efforts we have made great progress in attracting and
retaining biotechnology and pharmaceutical companies. It is
important that these efforts continue." He noted that Spherics is
the sixth biotech company to establish or expand manufacturing
operations in Massachusetts over the past two years.

"The move to Massachusetts will help accelerate our growth," said
Ze'ev Shaked, Ph.D., Spherics president/CEO. "The support we
received from the state and local officials, and from the
biotechnology community, were key factors in our decision."

The company has leased a 29,500 square foot facility in the Cabot
Industrial Park in Mansfield, MA, which will house its headquarters,
research and development, and manufacturing operations. The ETF
funds will be used to purchase new equipment and renovate the
facility. Spherics currently has approximately 25 employees, and is
expected to add up to 25 new jobs over the next three years.

Spherics is an emerging pharmaceutical company focused on applying
its proprietary oral drug delivery platform to develop products with
improved therapeutic profiles. The Company's novel delivery
technologies improve drug performance by increasing absorption and
residence time in specific regions of the gastrointestinal tract.
Spherics' business strategy is to further its proprietary pipeline
of drugs, while working with pharmaceutical companies in life-cycle
management and product line extension. For more information, visit
www.spherics.com.

The Massachusetts Biotechnology Council (MBC), founded in 1985, is a
non-profit organization that provides services and support for the
Massachusetts biotechnology industry. The MBC is committed to
advancing the development of critical new science, technology and
medicines that benefit people worldwide. Representing over 400
companies, academic institutions and service organizations involved
in biotechnology and healthcare, the MBC works with public leaders
to advance policy and promote education, while providing member
programs and services.

MassDevelopment, the state's finance and development authority,
partners with businesses and local officials to stimulate growth
across the Commonwealth. In fiscal year 2004, the agency arranged
financing for or managed 201 projects statewide totaling more than
$1.25 billion. These projects supported the creation of more than
5,500 jobs and 2,445 housing starts.

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