Medicis Licenses Proprietary Peptide Technology from Ansata Therapeutics

SCOTTSDALE, Ariz. and VILLAGE OF LA JOLLA, Calif.--Dec. 14, 2004--Medicis (NYSE:MRX) and Ansata Therapeutics, Inc. ("Ansata") today announced they have entered into an exclusive development and license agreement and other ancillary agreements. The development and license agreement grants Medicis the exclusive, worldwide rights to Ansata's early-stage, proprietary antimicrobial peptide technology.

In accordance with the development and license agreement, Medicis will pay Ansata approximately $5 million upon signing of the agreement and approximately $9 million upon the successful completion of certain developmental milestones. Should Medicis continue with the development of this technology, the Company will incur additional milestone payments beyond the development and license agreement. The initial payment of $5 million will be written off in the current quarter as a special charge relating to a research and development collaboration. This payment was not included in the Company's financial guidance.

"We are pleased to announce this strategic relationship with Ansata, an innovative biotechnology company which has developed a proprietary antimicrobial peptide technology," said Jonah Shacknai, Chairman and Chief Executive Officer of Medicis. "With our commitment to maintaining leadership in the therapeutic dermatology marketplace, we believe our collaboration with Ansata will help us to provide physicians, patients and shareholders a proprietary, platform technology which complements our existing research and development pipeline and therapeutic product portfolio."

"We chose Medicis as a collaborative partner based on its proven record of bringing early-stage research and development projects to fruition," said Dee Conger, Chief Executive Officer of Ansata. "The sophistication of Ansata's technology required an adept collaborative partner with a commitment to success. We believe Medicis will be dedicated to the future of this technology we have developed."

The Technology

Ansata exploits its proprietary antimicrobial peptide technology platform to develop novel therapeutics for topical dermatologic indications. These peptides are an integral part of the body's innate immune defense system and represent a new class of anti-infective drugs capable of combating multi-drug resistant pathogens. Ansata's discovery program focuses on improving naturally occurring human antimicrobial peptides. Based on these efforts, Ansata has discovered, and is now developing, several promising molecules for the treatment of dermatologic diseases caused by infectious organisms.

Based on Ansata's proprietary discovery technology, its scientists have introduced specific and directed modifications into these naturally occurring peptides that have resulted in significant improvements in efficacy, stability and bioavailability. This focused screening effort enables the rapid identification of those peptides displaying enhanced activity, hence, shortening the time from research to clinic.

About Ansata

Ansata Therapeutics, Inc. is a biopharmaceutical company developing and commercializing innovative topical drugs for dermatologic indications. The company strives to rapidly advance lead compounds from late-stage preclinical research into clinical development by leveraging its proprietary knowledge of common dermatological diseases.

The company was funded in early 2002 by Avalon Ventures and Domain Associates, and is headquartered in the Village of La Jolla, just north of San Diego, California.

About Medicis

Medicis is the leading independent specialty pharmaceutical company in the United States focusing primarily on the treatment of dermatological and podiatric conditions and aesthetics medicine. The Company is dedicated to helping patients attain a healthy and youthful appearance and self-image. Medicis has leading branded prescription products in a number of therapeutic categories, including acne, eczema, fungal infections, psoriasis, rosacea, seborrheic dermatitis and skin and skin-structure infections. The Company's products have earned wide acceptance by both physicians and patients due to their clinical effectiveness, high quality and cosmetic elegance.

The Company's products include the prescription brands RESTYLANE(R), DYNACIN(R) (minocycline HCl), LOPROX(R) (ciclopirox), OMNICEF(R) (cefdinir), PLEXION(R) (sodium sulfacetamide/sulfur), TRIAZ(R) (benzoyl peroxide), LIDEX(R) (fluocinonide), and SYNALAR(R) (fluocinolone acetonide), the over-the-counter brand ESOTERICA(R), and BUPHENYL(R) (sodium phenylbutyrate), a prescription product indicated in the treatment of Urea Cycle Disorder. For more information about Medicis, please visit the Company's website at www.medicis.com.

Except for historical information, this press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act. All statements included in this press release that address activities, events or developments that Medicis expects, believes or anticipates will or may occur in the future are forward-looking statements. This includes earnings estimates, future financial performance and other matters. These statements are based on certain assumptions made by Medicis based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Medicis. Any such projections or statements include the current views of Medicis with respect to future events and financial performance. No assurances can be given, however, that these events will occur or that such results will be achieved. Medicis cannot validate its assumptions of the full impact on its business of the approval of competitive generic versions of its core brands, including DYNACIN(R) Tablets and/or LOPROX(R), or any future competitive product approvals that may affect its brands. Also, there are a number of additional important factors that could cause actual results to differ materially from those projected, including the anticipated size of the markets, the availability of product supply, the receipt of required regulatory approvals, the ability to realize anticipated synergies and benefits of the Q-Med transactions, the risks and uncertainties normally incident to the pharmaceutical industry, dependence on sales of key products, the uncertainty of future financial results and fluctuations in operating results, dependence on Medicis' strategy including the uncertainty of license payments and/or other payments due from third parties, the timing and success of new product development by Medicis or third parties, product introductions, the risks of pending or future litigation, and other risks described from time to time in Medicis' SEC filings including its Annual Report on Form 10-K for the year ended June 30, 2004. There can be no assurance as to when or if any of the holders of the Notes will have the right to convert or if the Notes will be converted, and what impact the increase in the number of shares outstanding will have on its results of operations. Forward-looking statements represent the judgment of Medicis' management as of the date of this release, and Medicis disclaims any intent or obligation to update any forward-looking statements.

NOTE: Full prescribing information for any Medicis prescription product is available by contacting the Company. OMNICEF(R) is a registered trademark of Abbott Laboratories, Inc. under a license from Fujisawa Pharmaceutical Co., Ltd. RESTYLANE(R) is a registered trademark of HA North American Sales AB, a subsidiary of Medicis Pharmaceutical Corporation. All other marks (or brands) and names are the property of Medicis or its Affiliates.

Contacts:

Medicis, Scottsdale
Kara Stancell, 602-808-3854