Synt:em

[Andrew Lloyd]

Drug discovery specialist Synt:em completes $4.4 million financing
Venture capital firms provide finance for Synt:em's growth plans

Nîmes, December 17, 1997--Synt:em announces today the completion of a new
round of financing to support the next stage of company growth. The company
now has the support of two international venture firms, Apax Partners and
Banexi Ventures, both of which have significant experience in biotechnology
and healthcare. New investments of approximately $3.4 million, bring the
capital to something over $4.25 million. Synt:em has also obtained a more
than $1 million innovation grant from French government agency, ANVAR,
which will be reimbursed when the project is successfully completed..

The new funds will be used in particular for the development of Synt:em's
proprietary Pep:Trans technology. Pep:Trans is based on new peptide-derived
vectors able to cross membranes. This allows therapeutic molecules to be
delivered to intracellular targets with greatly increased efficacy.

Pep:Trans is expected to overcome a common drug discovery problem where
molecules are found to be extremely effective in vitro but which fail in
vivo. This is due in particular to low bioavailability (the length of time
the molecule remains in human tissue) or inability to pass through
biological membranes. Using Pep:Trans will both increase the effectiveness
of drug delivery and allow the administration of smaller doses.

Pep:Trans takes full advantage of Synt:em's "In Silico Screening", a
technology platform based on chemical synthesis and molecular modelling
that has been under development at Synt:em for more than two years.

Current shareholders are now: Apax Partners, Banexi, investors from earlier
rounds (Soridec, Sofimac, Sofilaro, Mistral Investissement), who also
participated in the capital increase, private investors ("angels") and
management.

"Apax Partners and Banexi bring the company additional international
experience in analysing the biotechnology market, offering an outside
perspective on Synt:em's strategy and facilitating connections or
partnerships with other companies in the business," said Michel Kaczorek,
president and ceo of Synt:em. "In addition, they have approved a capital
structure that retains management incentives by allowing the latter to
conserve a significant part of the capital."

"We are very pleased to support the development of one of the most
innovative companies in drug discovery," said Dr Laurent Ganem, Partner at
Apax Partners, and President of the Conseil de Surveillance of Syntem. "The
current molecular modelling capabilities of Synt:em are quite impressive,
and we are much excited about the intracellular drug delivery research
program that is being carried out, for which we believe the products will
have broad application."

"Synt:em has built an outstanding drug discovery platform with an
unprecedented combination of skills and which is already validated by
several pharmaceutical contracts," said Sophie Pierrin-Lépinard, Banexi
Ventures Partner. "We are very proud to share this exciting new step of the
company. Synt:em fits perfectly with our current porfolio."

About Apax...

Apax Partners provides equity funding and corporate finance advice to
entrepreneurial businesses internationally. The Group manages nearly $3
billion of private equity funds, over $400 million of which is managed in
France, and invests across the spectrum of early stage, expansion capital,
management buy-out and buy-in opportunities out of thirteen offices.

Biotechnology and Health Care are privileged fields of investment for Apax
Partners. Examples of investments completed in Europe and in the United
States include: Effik, IDM, NicOx, PPL Therapeutics, Scotia, Creative
Biomolecules. Cytyc.

About Banexi...

Banexi Ventures is the venture capital arm of Banexi, a fully owned
subsidiary of BNP (Banque Nationale de Paris). Banexi Group has invested
525 million French francs ($88 million) in 180 venture capital deals over
the last 14 years, in three main areas : Information technology,
semiconductors and Life Sciences.

Examples of investments  based on technology platforms: Biovector
Therapeutics (drug delivery), IDM (cell therapy), Neurotech (cell-based
gene therapy).

About Synt:emŠ

Synt:em specialises in the discovery of new therapeutic molecules using
state-of-the-art tools in the field of structural biology, and molecular
modelling and synthesis. Since it was founded in 1995, the company has
focussed on two complementary technologies:

1.	Research tools and services, particularly in peptide synthesis.
2.	Contract research for the design and synthesis of new therapeutic
molecules.

Synt:em is already active in international markets, particularly in the
USA. It is located close to Montpellier, giving it easy access to one of
the world's leading centres of peptide expertise.

Synt:em currently employs 16 people, including 12 doctors of science and
engineers. The company can count on the know-how and experience of more
than 80 researchers through a number of partnership agreements signed with
leading laboratories in the fields of cellular and structural biology,
modelling and pharmacology.

Synt:em's revenues in its first accounting period to 31 December 1996 were
2.45 million francs (about $410,000). Forecast revenues for 1997 are 5
million francs ($830,000). The company continues actively to seek
partnerships with industry to extend the applicability of its technology to
other therapeutic areas.


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