Prometheus Laboratories Inc. Highlights Significant Milestones In 2005

SAN DIEGO, April 12 /PRNewswire/ -- Prometheus Laboratories Inc., a specialty pharmaceutical company, today highlighted major milestones during fiscal year 2005.

"We are excited by the outstanding progress Prometheus has achieved in the past year. Based on our accomplishments in 2005, we are encouraged about our prospects as we move forward in 2006 and beyond," said Joseph M. Limber, President and Chief Executive Officer of Prometheus. "We believe our model of providing physicians with both pharmaceuticals and clinical diagnostic services in order to optimize patient therapy, gives us a competitive advantage to gain access to the additional products and services necessary to fuel our growth."

2005 highlights include: -- Net revenues grew from $70 million in 2003 to $90 million in 2004 and approximately $140 million in 2005, doubling from 2003. -- Revenues from clinical diagnostic services grew from $39 million in 2003, to $51 million in 2004 and to $55 million in 2005. -- The Company completed its first year under an Agreement with AstraZeneca LP, whereby Prometheus is responsible for the sales, marketing and distribution of ENTOCORT(R) EC (budesonide) Capsules, a prescription drug used to treat Crohn's disease involving the ileum and/or ascending colon.* - ENTOCORT EC net sales increased from approximately $30 million under AstraZeneca in 2004 to $45 million under Prometheus in 2005. - ENTOCORT EC total prescriptions increased approximately 12% from 2004 to 2005, in a relatively flat market. - In May, the U.S. Food & Drug Administration (FDA) approved a supplemental New Drug Application for the use of ENTOCORT EC for the maintenance of clinical remission of mild to moderate Crohn's disease involving the ileum and/or the ascending colon for up to three months. -- The Company reduced borrowings from $60 million in 2003 to $29 million at the end of 2005. The remaining debt was refinanced in August, substantially reducing cash interest expense. At the end of 2005, the Company's debt was $28.8 million. -- In addition to reducing its debt levels, the Company increased its cash position from $28 million at the beginning of 2003 to $44 million at the end of 2005. Prometheus has generated positive cash flow in each of the last three years. -- The Company moved into a new facility allowing for the expansion of the Company's clinical laboratory and corporate offices as required to support its growth.

In 2006 and beyond, the Company's strategy is to continue to grow by acquiring or licensing currently marketed, proprietary pharmaceutical products or proprietary products in development as well as by commercializing additional clinical diagnostic products.

About Prometheus

Prometheus Laboratories Inc. is a specialty pharmaceutical company committed to developing new ways to help physicians individualize patient care. Prometheus focuses on the treatment, diagnosis and detection of gastrointestinal, autoimmune and inflammatory diseases and disorders. Prometheus' strategy includes the marketing and delivery of pharmaceutical products complemented by its proprietary, high-value diagnostic testing services. By integrating therapeutics and diagnostic services, Prometheus addresses the continuum of patient care, thereby providing physicians with a comprehensive solution to treat chronic diseases. Prometheus' corporate offices are located in San Diego, California. Additional information about Prometheus can be found at www.prometheuslabs.com.

This press release contains certain "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. To the extent that any statements made in the news release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties. Actual events or results may differ materially from those projected in any of such statement due to various factors. Prometheus cautions that any forward-looking information is not a guarantee of future performance. The Company may experience fluctuations in operating results, or may not acquire, license or develop any other products for a variety of reasons. It is difficult to predict the impact of competitive products and pricing and new product development and launch. There can be no assurance that the Company can successfully commercialize, penetrate or grow the market for its products.

* For Crohn's disease involving the ileum and/or ascending colon, ENTOCORT EC is indicated for the treatment of mild to moderate active disease (up to 8 weeks with repeated 8-week courses as necessary) and the maintenance of clinical remission of mild to moderate disease for up to an additional 3 months. Clinical remission is defined as a Crohn's Disease Activity Index (CDAI) score of less than or equal to 150. Prometheus is a trademark of Prometheus Laboratories Inc. ENTOCORT is a registered trademark of the AstraZeneca group of companies.

Prometheus Laboratories Inc.

CONTACT: Beth Kriegel, Senior Director, Finance and Investor Relations ofPrometheus Laboratories Inc., +1-858-410-2516

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