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NUCRYST Receives Deficiency Notice from NASDAQ
Date:8/15/2008

WAKEFIELD, MA, Aug. 15 /PRNewswire-FirstCall/ - NUCRYST Pharmaceuticals, a developer and manufacturer of medical products that fight infection and inflammation, today announced that on August 14, 2008, it received notice from The Nasdaq Stock Market stating that, for the last 30 consecutive trading days, the Company's common shares had not maintained the minimum market value of publicly held shares ("MVPHS") of $5 million required for continued listing on The Nasdaq Global Market under Marketplace Rule 4450(a)(2) (the "Rule"). Receipt of this notice has no immediate effect on the listing of the Company's common shares. The Company has 90 calendar days, or until November 12, 2008, to regain compliance with the Rule.

The notice states that if at any time before November 12, 2008, the MVPHS of NUCRYST's common shares is $5 million or more for a minimum of 10 consecutive trading days, Nasdaq will provide written notification that the Company complies with the Rule. If the Company cannot demonstrate compliance with that Rule by November 12, 2008, Nasdaq staff will notify the Company that its securities will be delisted from The Nasdaq Global Market. If the Company receives a delisting notice, the Nasdaq Marketplace Rules would permit the Company to appeal the Nasdaq staff's determination to delist its securities to a Nasdaq Listing Qualifications Panel.

NUCRYST is currently evaluating its alternatives to resolve the listing deficiency. If the Company is unable to resolve the listing deficiency, it may apply to transfer its common shares to The Nasdaq Capital Market. In order to transfer, the Company must satisfy the continued inclusion requirements for that market which the Company believes it currently does. If the Company submits a transfer application by November 12, 2008, the initiation of the delisting proceedings will be stayed pending the Nasdaq staff's review of the application.

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