As part of its effort to restructure and consolidate operations, Neurogen announced that on November 13, 2008 it entered into a purchase and sale agreement to sell four of its five buildings for a purchase price of $6.0 million. Closing of the sale is subject to conditions customary for commercial real estate transactions, including a 45 day diligence period, and is expected to occur in the first quarter of 2009. The facilities being sold are subject to a mortgage loan facility the balance of which was approximately $4.7 million at September 30, 2008.

Also, on November 10, 2008, Neurogen entered into a definitive agreement with a global pharmaceutical company to sell its chemical library for $3.0 million. Payment of the proceeds from this sale is subject to customary conditions relating to delivery of the library and related information. Neurogen expects to receive the proceeds of this sale in the fourth quarter of 2008.

About Neurogen

Neurogen Corporation is a drug development company focusing on small-molecule drugs to improve the lives of patients suffering from psychiatric and neurological disorders with significant unmet medical need. Neurogen conducts its drug development independently and, when advantageous, collaborates with world-class pharmaceutical companies to access additional resources and expertise.

Safe Harbor Statement

The information in this press release contains certain forward-looking statements, made pursuant to applicable securities laws that involve risks and uncertainties as detailed from time to time in Neurogen's SEC filings, including its most recent 10-K. Such forward-looking statements relate to events or developments that we expect or anticipate will occur in the future and include, but are not limited to, statements that are not historical facts relating to the timing and occurrence of anticipated clinical trials, and potential collaborations or extensions of existing collaborations. Actual results may differ materially from such forward-looking statements as a result of various factors, including, but not limited to, risks associated with the inherent uncertainty of drug research and development, difficulties or delays in development, testing, regulatory approval, production and marketing of any of the Company's drug candidates, adverse side effects or inadequate therapeutic efficacy or pharmacokinetic properties of the Company's drug candidates or other properties of drug candidates which could make them unattractive for commercialization, advancement of competitive products, dependence on corporate partners, the Company’s ability to retain key employees, sufficiency of cash to fund the Company's planned operations and patent, product liability and third party reimbursement risks associated with the pharmaceutical industry. For such statements, Neurogen claims the protection of applicable laws. Future results may also differ from previously reported results. For example, positive results or safety and tolerability in one clinical study provide no assurance that this will be true in future studies. Neurogen disclaims any intent and does not assume any obligation to update these forward-looking statements, other than as may be required under applicable law.

Contact:

Neurogen Corp. Thomas A. Pitler, 203-315-3046 tpitler@nrgn.com

Source: Neurogen Corporation