Chromos Molecular Systems Inc. Reports Third Quarter 2005 Results

BURNABY, BC, Nov. 15 /PRNewswire-FirstCall/ - Chromos Molecular Systems Inc. , a cellular engineering and therapeutics company, today announced results for the third quarter ended September 30, 2005.

Third Quarter Operating Highlights - Revenues for the nine months ended September 30, 2005 totalled $2,938,348 compared to $433,456 for the same period in 2004. - Entered into non-exclusive co-marketing arrangement with SAFC Biosciences, a member of the Sigma-Aldrich Group, to jointly market the Chromos ACE System, expanding access to the global biopharmaceutical market. - Granted a license to BD (Becton, Dickinson and Company) for the use of certain patents related to antigen-specific T-cells expansion.

"Chromos continued to gain momentum this quarter with progress toward completion of an important acquisition and the completion of new deals that generate revenues from our proprietary platforms," said Alistair Duncan, President and CEO of Chromos. "We remain focused on generating value from our assets and are excited about the potential of our product development program."

In October 2005, Chromos entered into a definitive agreement to acquire Targeted Molecules Corporation, a private company with two antibody product candidates for treatment of multiple sclerosis and acute thrombosis. Concurrently with the acquisition, Chromos plans to complete a private placement. The transactions are more fully described in the Company's information circular for a special meeting of shareholders to be held on November 23, 2005.

Financial Highlights

For the three months ended September 30, 2005, the Company reported a net loss of $1,199,408 ($0.06 per share) compared to a loss of $2,144,594 ($0.12 per share) for the same period in 2004. The loss of the nine months ended September 30, 2005 was $4,727,880 ($0.23 per share) compared to $5,014,938 ($0.29 per share) for the same period in 2004. The loss for the quarter decreased from the previous fiscal year, as a result of increased licensing revenues, combined with decreases in both research and development and general and administrative expenditures. The decrease in the loss for the nine month period ended September 30, 2005 over the prior year is due to increases in revenues from ACE System partnering and licensing which offset the increased costs of the cell therapy programs based in Seattle. The Seattle operations were discontinued in March 2005.

At September 30, 2005 the Company had cash and cash equivalents, and short-term investments of $319,964 as compared to $1,557,552 at December 31, 2004. Management believes that current cash and the cash expected to be received following the November 2005 private placement and partnering revenues will be sufficient to finance operations through 2007.

Debenture

On November 15, 2005, the Company issued 1,127,741 common shares in payment of interest and the redemption of the remaining principal amount owing of $1,875,000 for the convertible debenture issued to CellExSys Inc. ("CellExSys") shareholders during the 2004 acquisition of CellExSys. No amount remains owing under this debenture.

About Chromos

Chromos is a cellular engineering and therapeutics company creating value through engineering production quality cell lines for the manufacture of biopharmaceuticals, and the development of innovative biological therapies for debilitating diseases. Chromos has exclusive worldwide rights to two platform technologies, the ACE System (Artificial Chromosome Expression) and REM (Rapid Expansion Method) technology. In the near term, Chromos will focus on continued commercialization of the ACE System for engineering cell lines for biopharmaceutical manufacture. To date Chromos has entered into corporate partnerships with partners including Pfizer Inc., Centocor, Inc., BD (Becton, Dickinson and Company) and Cambridge Antibody Technology. In addition, the Company has strategic alliances with AppTec Laboratory Services, Inc., a leading biopharmaceutical contract manufacturer and with SAFC Biosciences, a member of the Sigma-Aldrich Group providing cell culture media development services to biopharmaceutical customers.

Risks and Uncertainties

Certain of the statements contained in this press release are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Chromos (the "Company"), or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

To the extent possible, management implements strategies to reduce or mitigate the risks and uncertainties associated with the Company's operations. Operating risks include (i) the continued availability of capital to finance the Company's activities; (ii) the Company's limited cash position, (iii) the ability to successfully obtain proof of the effectiveness of the Company's technology (iv) the ability to complete and maintain corporate alliances relating to the development and commercialization of the Company's technology; (v) the ability to obtain and enforce patent and other intellectual property protection for the Company's technology; (vi) market acceptance of the Company's technology; (vii) the competitive environment and impact of technological change; (viii) the Company's ability to attract and retain employees to carry out its business plans and (ix) the timely development and commercialization of any technology or products that are contingent on the completion and maintenance of corporate alliances with third parties. Further details on Chromos' operating risks can be found in the Company's Quarterly and Annual Reports to Shareholders.

FOR FURTHER INFORMATION: Kathryn Hayashi, CA Vice President Finance Tel: 604-415-7132 Email: khayashi@chromos.com

Chromos Molecular Systems Inc.

CONTACT: Kathryn Hayashi, CA, Vice President Finance, Tel: (604) 415-7132,Email: khayashi@chromos.com