PRAECIS PHARMACEUTICALS INCORPORATED Announces Agreement for Sale of Facility

PRAECIS PHARMACEUTICALS INCORPORATED (NASDAQ: PRCS)
today announced that it has entered into an agreement to sell, for
$51,250,000, its corporate headquarters and research facility located
in Waltham, Massachusetts. PRAECIS will sell its approximately 180,000
square foot, first-class office and laboratory building to
Intercontinental Real Estate Corporation, a real estate investment and
management firm, located in Boston, Massachusetts, acting on behalf of
Intercontinental Real Estate Investment Fund III, LLC. As part of the
agreement, PRAECIS will leaseback from Intercontinental approximately
65,000 square feet of state-of-the-art laboratory and office space
within the facility.

   Upon closing of the transaction, which is anticipated to occur by
the end of October, the Company will realize, net of fees and
expenses, proceeds of approximately $50.6 million. Concurrent with the
closing, the Company will retire the outstanding mortgage on the
facility of approximately $31.6 million. The remaining net proceeds of
approximately $19.0 million will be used to further the Company's
research and development goals and objectives.

   Kevin F. McLaughlin, President and Chief Executive Officer of
PRAECIS, stated, "We are extremely pleased with this transaction that,
when concluded, will increase significantly the Company's cash and
investment balance, which as of September 30, 2005, was approximately
$48.0 million. This transaction will also assist us in reducing our
ongoing facility operating expenses. The facility sale will enhance
our flexibility as we continue to focus our resources on our most
promising assets and technologies. In addition, through the lease of a
portion of the facility, we will be able to meet our current needs and
achieve our goal of minimizing disruption to our ongoing operations.
Intercontinental is a high caliber organization and we are delighted
to be working with them, and look forward to a long and mutually
beneficial relationship."

   Intercontinental is an SEC Registered Investment Advisor that
manages private equity real estate investments and provides real
estate services for domestic and international clients. Established in
Boston over 40 years ago, Intercontinental has acquired, developed,
built and managed over $3.0 billion of real estate.

   About PRAECIS

   PRAECIS PHARMACEUTICALS INCORPORATED is a biopharmaceutical
company focused on the discovery, development and commercialization of
innovative therapies that either address unmet medical needs or offer
improvements over existing therapies. PRAECIS has a novel MetAP-2
inhibitor in clinical development for non-Hodgkin's lymphoma and solid
tumors, as well as an innovative drug discovery technology, Direct
Select(TM), which enables the generation and practical use of
ultra-large libraries for the discovery of orally active compounds for
drug development. PRAECIS has received approval to market Plenaxis(R)
in Germany.

   This news release contains forward-looking statements, including
statements regarding the expected timing for the closing of the sale
of the Company's corporate headquarters and research facility, and the
Company's expected net proceeds, and the expected future use of those
net proceeds, from such a transaction. These statements are based on
the Company's current beliefs and expectations as to future outcomes
and are not guarantees of future events or performance. These
statements are subject to numerous risks, uncertainties and
assumptions that could cause actual events and results to differ from
those anticipated or projected, including, but not limited to, the
Company's ability to complete the sale of its facility to
Intercontinental Real Estate Corporation by a specified date, the
Company's ability to manage operating expenses and unexpected
expenditures, as well as the risks set forth from time to time in the
Company's filings with the Securities and Exchange Commission,
including but not limited to various risks discussed in the Company's
Quarterly Report on Form 10-Q for the quarter ended June 30, 2005. The
Company undertakes no obligation to update any forward-looking
statement made in this press release to reflect new information,
events or circumstances after the date of this release.

   Plenaxis(R) is a registered trademark of PRAECIS PHARMACEUTICALS
INCORPORATED.