PRAECIS PHARMACEUTICALS INCORPORATED Completes Sale of Facility for $51.25 Million

PRAECIS PHARMACEUTICALS INCORPORATED (NASDAQ: PRCS)
today announced that it has completed the sale of its approximately
180,000 square foot corporate headquarters and research facility
located in Waltham, Massachusetts to Intercontinental Real Estate
Investment Fund III, LLC, an affiliate of Intercontinental Real Estate
Corporation. Concurrent with the closing of the transaction, PRAECIS
signed a lease for 65,464 square feet of state-of-the-art laboratory
and office space within the facility.

   Under the terms of the transaction, Intercontinental paid $51.25
million for the facility. The Company realized, net of fees and
expenses, proceeds of approximately $50.4 million. Concurrent with the
closing, the Company retired the outstanding mortgage on the facility
of approximately $31.4 million. The remaining net proceeds of
approximately $19.0 million will be used to further the Company's
research and development goals and objectives.

   Richards, Barry, Joyce and Partners LLC acted as the broker for
PRAECIS in the transaction.

   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 use of the net proceeds from the
sale of the Company's corporate headquarters and research facility.
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 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.