Acologix Closes $40 Million Series B Financing

Japan Investors Fund Development of Promising Compounds for Osteoporosis, Bone-Fracture and Dental Healing, and Kidney Disease.

Emeryville, CA-May 3, 2004 — Acologix Inc., a privately held biopharmaceutical company, based here, today announced the closing of its Series B financing of nearly $40 million. The financing was led by Nomura Securities Co., Ltd. of Tokyo. Participating in the round as new investors were Nomura Research and Advisory Co., Ltd., Softbank Investment Co., Ltd., SMBC Capital Co., Ltd., and Tokio Marine and Fire Insurance Co., Ltd. Previous investors include JAIC America, and AquaRIMCO, among others.

"We view this financing as a strong validation of our approach for identifying unique molecules that have the potential to become novel therapeutics," said Mr. Yoshi Kumagai, president and CEO of Acologix. "We believe Acologix is one of the first U.S.-based biotech companies to capitalize on the increasingly sophisticated Japanese venture community to complete a financing of this magnitude. The financing will permit Acologix to continue building an outstanding team, and to advance our product development and commercialization."

Acologix plans to use most of the funding to accelerate Phase-II clinical development of AC-100, its drug candidate aimed at osteoporosis, fracture healing and dental tissue regeneration. Additionally, the company plans to initiate Phase I clinical trials in 2005 for another drug candidate to treat osteoporosis, and a third that has been shown to reduce serum phosphate levels that could be beneficial in the treatment of chronic renal disease.

AC-100 is Acologix's most advanced candidate in development. In preclinical models, AC-100 has demonstrated activity in bone formation as well as dental tissue regeneration. Recently, preclinical studies of AC-100 have been presented at scientific meetings and published in the Journal of Bone and Mineral Research and the Journal of Dental Research. Acologix has completed a Phase I clinical study of this compound that demonstrated a high safety profile, and is now preparing for a Phase IIa trial in one of several bone or dental indications.

About Acologix, Inc.

Acologix, Inc. is a biopharmaceutical company focused on developing and commercializing novel therapeutics primarily for the treatment of metabolic disorders. Acologix's research approach is centered on the biological functions of minerals and extracellular matrix molecules in the body, which has led to six unique therapeutic product candidates. More information on the company and its product candidates can be found at its website, www.acologix.com.

This press release contains "forward-looking" statements. These statements involve risks and uncertainties, which may cause results to differ materially from those set forth in the statements. The forward-looking statements include statements regarding product development and cannot be guaranteed. Acologix undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this press release should be evaluated together with the many uncertainties that affect Acologix's business.

Company Contact

Yoshi Kumagai
President & CEO
Phone: 510.379.1073 ext 10
Fax: 510.379.1074