Sale of MetaXen Assets to Exelixis / Exelixis Will

Acquire Assets of MetaXen, Including the Facilities, Equipment,and Employees SAN FRANCISCO (PROTEXT) - Exelixis Pharmaceuticals, Inc. andMetaXen announced today that an agreement has been reached underwhich Exelixis will acquire the majority of assets of MetaXenLLC, a subsidiary of UK-based Xenova (London Stock Exchange: XEN;Nasdaq: XNVA). Under the terms of the agreement, Exelixis willacquire assets of MetaXen, including facilities, equipment, andemployees. In exchange, Xenova will receive a net cash payment of$380,000 (238,000 Pounds Sterling), as well as retain ownershipof certain intellectual property developed by MetaXen relating todrug lead optimization, drug profiling and predictive modeling. MetaXen's high quality drug discovery team and leadoptimization technologies are complimentary additions to thePathFinder(TM) and TargetFinder(TM) target identification andvalidation technologies that have formed the basis for the recentgrowth and success of Exelixis. This acquisition is the firststep in Exelixis' stated strategy to develop its own compoundsdirected against its proprietary targets. Exelixis will continueto provide technology and targets to its pharmaceutical andagrochemical partners, and will utilize the assets acquired fromMetaXen, together with additional capabilities to be added in thenear future to undertake its own compound development. It was also announced today that future development work inrespect of the successful PAI-1 (plasminogen activator inhibitor)strategic research and development partnership between MetaXen,Xenova and Lilly will be internalized at Lilly. It is anticipatedthat the transfer of research work to Lilly will be complete bySeptember 30, 1999. Xenova will retain all milestone payments andfuture rights and royalties relating to this project. Researchinto the oncology applications of PAI-1 inhibitors will continueto be carried out by Xenova. MetaXen's management team and founders, Drs. Michael Ross, CEOand Lutz Giebel, V.P. of R&D will leave MetaXen, but willcontinue to advise Xenova until completion of the transfer of PAIrelated work to Lilly. As part of the transaction, Michael Rosshas submitted his resignation to the Xenova Group Board. Theminority shareholders of MetaXen will transfer their ownership inMetaXen LLC to Xenova. George Scangos, Ph.D., President and Chief Executive Officerof Exelixis, said: "I'm extremely pleased that the staff ofMetaXen will join Exelixis. This acquisition gives Exelixis agreat start toward its strategic goal of compound development inboth pharmaceuticals and agrochemicals. The employees of MetaXenhave significant expertise in formatting and carrying outcompound screening assays as well as lead optimization. OurPathFinder(TM) and TargetFinder(TM) technologies have beenextremely productive and as a result, we are generating acontinual pipeline of high-quality targets in both our sponsoredand our proprietary programs. We intend to develop our owncompounds directed at our proprietary targets and thisacquisition gives us an immediate significant capability. Weintend to add additional components complimentary to thoseacquired from MetaXen to our drug development capabilities." Exelixis Pharmaceuticals, Inc., together with its affiliate,Artemis Pharmaceuticals GmbH, represent the premiere model systemgenetics biopharmaceutical organization focused on theidentification and validation of novel screening targets andproteins for the pharmaceutical, diagnostic, agricultural, andanimal health industries. Their PathFinder(TM) Technologyutilizes a systematic genetics approach in model organismsincluding Drosophila, C. elegans, zebrafish and mice to identifycritical genes in disease and physiological pathways, determinefunctional relationships and select optimal targets forintervention. Exelixis' drug discovery programs include the areasof CNS, inflammation, metabolic disease, and oncology.Information about Exelixis including news releases are availableon the Company's website at: http://www.exelixis.com . Contact: George Scangos, Ph.D., President and Chief ExecutiveOfficer of Exelixis Pharmaceuticals, Inc., 650-825-2201; or TonyRusso, Ph.D., 212-696-4455, of Noonan/Russo Communications, Inc.ots Original Text Service: Exelixis Pharmaceuticals Internet:http://www.newsaktuell.de Contact: George Scangos, Ph.D.,President and Chief Executive Officer of ExelixisPharmaceuticals, Inc., 650-825-2201; or Tony Russo, Ph.D., 212-696-4455, of Noonan/Russo Communications, Inc. Web site:http://www.exelixis.com

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