Guilford Pharmaceuticals Implements Strategic Reorganization to Align Resources With Corporate Strategy

Guilford Pharmaceuticals Implements Strategic Reorganization to
Align Resources With Corporate Strategy 


BALTIMORE, May 24  /PRNewswire-FirstCall/ -- Guilford Pharmaceuticals Inc.
(NASDAQ:GLFD) today announced that it has implemented a restructuring plan that
it expects will reduce overall costs and realign its resources to optimally
focus on the Company's key assets, GLIADEL(R) Wafer and AQUAVAN(R) Injection.

Dean J. Mitchell, President and Chief Executive Officer, remarked, "We recently
established a new strategy with the goal of transforming Guilford into a
focused, market-driven pharmaceutical company positioned to deliver improved
shareholder value.  As part of this process we selected the key assets on which
our future success would be based.  Our next step was to align Guilford's
organizational structure with the new strategy to ensure we are optimally
resourced to achieve our corporate objectives.

"Under the restructuring plan announced today we have implemented several
actions to improve efficiencies and reduce expenses, while enhancing the focus
on our key products, GLIADEL(R) and AQUAVAN(R)," continued Mr. Mitchell.
"First, we have realigned our sales territories to provide increased sales and
marketing focus on GLIADEL(R), while supporting AGGRASTAT(R) through the
transition process.  Second, we have implemented organizational changes,
including consolidating our regulatory affairs group into the clinical
development organization to better support clinical development activities for
AQUAVAN(R).

"Finally, we have also taken additional measures to streamline our workforce to
conserve our financial resources and ensure the alignment of our personnel with
our operational needs," said Mr. Mitchell.  "Since December 2004, we have
reduced our workforce from 300 to 238 positions.  Several of these positions
have been eliminated through attrition, while an additional 38 positions have
been eliminated today as part of the restructuring plan. While I regret the
necessity for such decisions, I firmly believe that the new organization will
ensure Guilford is better aligned to achieve its corporate objectives and build
shareholder value as we continue to make progress against our new strategy and
deliver results."

As a result of the restructuring plan, the Company currently estimates that it
will incur charges of approximately $1.3 million related to severance and
outplacement costs.  The Company currently expects that these restructuring
expenses will be paid over the next nine months.  By realigning its personnel,
the Company expects to achieve an annualized expense reduction of approximately
$6 million.

About Guilford

Guilford Pharmaceuticals Inc. is a pharmaceutical company engaged in the
research, development and commercialization of proprietary drugs that target
the hospital and neurology markets.  Presently, Guilford markets two commercial
products, GLIADEL(R) Wafer (polifeprosan 20 with carmustine implant), for the
treatment of brain cancer, and AGGRASTAT(R) Injection (tirofiban
hydrochloride), a glycoprotein GP IIb/IIIa receptor antagonist for the
treatment of acute coronary syndrome (ACS).  Guilford's product pipeline
includes a novel anesthetic, AQUAVAN(R) Injection, and drugs for treating
Parkinson's disease and peripheral nerve injury.  For additional prescribing
information about GLIADEL(R) and AGGRASTAT(R) please see
http://www.guilfordpharm.com/, under Products / Marketed Products.

   Contact:  Stacey Jurchison
             410-631-5022
             



This press release contains forward-looking statements that involve risks and
uncertainties, including those described in the section entitled "Risk Factors"
contained in the Company's Quarterly Report on Form 10-Q filed with the SEC on
May 9, 2005 that could cause the Company's actual results and experience to
differ materially from anticipated results and expectations expressed in these
forward-looking statements.  Among other things there can be no assurance that
the Company will be successful in its efforts to license, partner or divest
AGGRASTAT(R) Injection. 

DATASOURCE: Guilford Pharmaceuticals Inc.



CONTACT:  Stacey Jurchison, Guilford Pharmaceuticals Inc.,

[phone], 



Web site:  http://www.guilfordpharm.com/ 



Company News On-Call:  http://www.prnewswire.com/comp/112882.html

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