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Data Presented at SLEEP 2007 Shows VEC-162 Improves Sleep Onset and,Maintenance vs. Placebo

significance. For TST, the 50 mg dose achieved significance (p=0.024) and the 20 and 100 mg doses showed a trend toward significance.

"VEC-162 induces and maintains sleep by modulating the sleep/wake cycle," said Paolo Baroldi, M.D., Ph.D., Chief Medical Officer, Vanda Pharmaceuticals Inc. "The subjective findings suggest the compound's unique mechanism of action provides a noticeable improvement in overall sleep quality."

About Insomnia

Approximately 70 million American adults experience insomnia of all types, characterized by difficulty falling asleep, waking frequently during the night, waking too early and not being able to return to sleep, or waking up not feeling refreshed. Circadian Rhythm Sleep Disorders (CRSD), one type of insomnia, affect millions of Americans in a number of forms. Shift Worker Sleep Disorder is a CRSD affecting the 14% of Americans who are shift workers. Another CRSD type is Delayed Sleep Phase Syndrome, which affects 5-10% of patients in sleep disorder clinics and accounts for 40% of disorders involving sleep-wake schedules.

About Vanda Pharmaceuticals Inc.

Vanda Pharmaceuticals Inc., headquartered in Rockville, Maryland, is a biopharmaceutical company working to advance the science of personalized medicine to improve the lives of patients with various CNS disorders, including insomnia and schizophrenia. The company has three product candidates in clinical development. Vanda's lead product candidate, iloperidone, is a compound for the treatment of schizophrenia and has completed its Phase III program. Vanda's second product candidate, VEC-162, is a compound for the treatment of sleep and mood disorders which is currently in Phase III for insomnia. Vanda's third product candidate, VSF-173, is a compound in Phase II for the treatment of excessive sleepiness. For more on Vanda Pharmaceuticals Inc., please visit http://www.vandapharma.com .

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