PharmaNetics Engages Financial Advisor to Assist in Review of Strategic Alternatives.

Business Editors/Health/Medical Writers

RALEIGH, N.C.--(BUSINESS WIRE)--Jan. 16, 2004

PharmaNetics, Inc. (NASDAQ-SCM: PHAR), a leader in theranostic management specializing in managing the delivery of therapeutics affecting coagulation, today announced that the Company engaged Davenport & Company LLC ("Davenport"), an investment banking firm, as its financial advisor to assist the Company in pursuing a potential sale of its manufacturing operations and routine test business as well as review other strategic alternatives.

In connection with this development, John P. Funkhouser, president and chief executive officer, stated, "As previously announced, our goal is to evaluate strategic opportunities that will enable the Company to reduce overhead, preserve cash and keep its technology and manufacturing capability intact, while pursuing its claims against Aventis. In addition, the Company's Board of Directors intends to carefully evaluate any strategic opportunity that can maximize shareholder value."

PharmaNetics, Inc., a leading biotech company, conceived the term "theranostics," defining an emerging field of medicine that enables physicians to monitor the effect of antithrombotic agents in patients being treated for angina, myocardial infarction (heart attack), stroke, and pulmonary and arterial emboli. The Company develops, manufactures and markets rapid turnaround diagnostics to assess blood clot formation and dissolution. PharmaNetics develops tests based on its proprietary, dry chemistry Thrombolytic Assessment System. Its principal target market is the management of powerful new drug compounds, some of which may have narrow therapeutic ranges, ...