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Preclinical Study Finds Protease Inhibitor-Resistant HIV May Have,Reduced Potential to Develop Resistance to Panacos' Bevirimat

nst a broad range of HIV strains, including those that are resistant to existing classes of drugs. The Company has completed seven clinical studies of bevirimat in over 300 subjects, showing significant reductions in viral load in HIV-infected subjects and a promising safety profile, and is currently in Phase 2b clinical trials. The Company also has a second-generation program in HIV maturation inhibition in clinical testing and a research program to develop oral HIV fusion inhibitors.

Except for the historical information contained herein, statements made herein, including those relating to the clinical development of bevirimat, the potential results of treatment with bevirimat and future clinical trials and clinical practice with bevirimat are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements involve risks as set forth in the Company's filings with the Securities and Exchange Commission, including, but not limited to, the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and the Company's Quarterly Report for the period ended March 31, 2007. These risks and uncertainties could cause actual results to differ materially from any forward-looking statements made herein. The Company undertakes no obligation to publicly update forward-looking statements, whether because of new information, future events or otherwise, except as required by applicable law.

Contact

Panacos Pharmaceuticals, Inc.
Jill Smith
Director, Corporate Communications
240-449-1250
jsmith@panacos.com
or
Peyton Marshall
EVP and Chief Financial Officer
617-926-1551
pmarshall@panacos.com


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