PRAECIS PHARMACEUTICALS INCORPORATED Reports Third Quarter 2005 Financial Results

PRAECIS PHARMACEUTICALS INCORPORATED (NASDAQ: PRCS)
today announced consolidated financial results for the three and nine
months ended September 30, 2005. All per share amounts have been
retroactively restated for all periods presented to reflect a 1-for-5
reverse stock split of the Company's common stock effected on November
1, 2005.

   Third Quarter 2005 Results

   The Company's net loss for the three months ended September 30,
2005 was approximately $5,168,000, or $0.49 per diluted share,
compared to a net loss of approximately $13,954,000, or $1.33 per
diluted share, for the three months ended September 30, 2004. The
decreased net loss for the three months ended September 30, 2005,
compared to the three months ended September 30, 2004, was due
primarily to reduced expenses resulting from the Company's strategic
restructuring announced in May 2005, as well as the recognition of
approximately $1,806,000 of deferred revenues relating to the
Company's former collaboration with Schering AG. The expense
reductions related principally to the voluntary discontinuation of
promotional activities for Plenaxis(R) in the United States and a
reduction in headcount in May 2005. Expenses incurred during the third
quarter of 2005 related primarily to clinical development of the
Company's investigational compound, PPI-2458, the advancement of its
Direct Select(TM) drug discovery technology and general and
administrative expenses.

   For the nine months ended September 30, 2005, the Company's net
loss was approximately $59,883,000, or $5.71 per diluted share,
compared to a net loss of approximately $44,176,000, or $4.22 per
diluted share, for the nine months ended September 30, 2004. The net
loss for the nine months ended September 30, 2005 includes
approximately $32,173,000 million of restructuring and asset
impairment expenses recorded during the second quarter, of which
approximately $2,555,000 were severance costs associated with the
headcount reduction referenced above. At September 30, 2005, the
Company had cash, cash equivalents and marketable securities of
approximately $48,088,000, compared to approximately $83,349,000 at
December 31, 2004. The Company had 77 full-time employees at October
31, 2005, compared to 168 full-time employees at December 31, 2004.
The Company continues to expect that as a result of focusing its
efforts and resources, its annual cash utilization will decrease to
approximately $30.0 million per year beginning in 2006. Accordingly,
including the net proceeds from the sale of its facility and the
settlement payment received from Schering AG during October 2005, the
Company now expects that it should have available resources to allow
it to pursue its current operating plan through approximately the end
of 2007, and possibly longer assuming the successful partnering of
either its Direct Select(TM) drug discovery technology or its PPI-2458
program, or the license or sale of the rights to Plenaxis(R) for
commercialization on a regional or worldwide basis.

   Commenting on the Company's third quarter results, Kevin F.
McLaughlin, PRAECIS' President and Chief Executive Officer, stated,
"During the third quarter, we continued to execute our strategic plan
put in place in connection with the strategic restructuring and
refocusing of our operations announced earlier this year. Our PPI-2458
clinical program continues to advance, and we continue to expand and
enhance our Direct Select(TM) drug discovery technology and are in
discussions regarding potential partnership opportunities for this
technology. Our plan to reduce our facility size and related costs was
concluded with the sale and partial leaseback of our corporate
headquarters in October, which provided approximately $18.8 million of
net proceeds to the Company."

   "During the quarter, we gained approval to market Plenaxis(R) in
Germany for a broad patient population," Mr. McLaughlin continued. "As
previously announced, our former European partner elected to exit from
the program, and in October we received a $4.0 million settlement
payment in connection with the termination of their license agreement
with us. We are currently seeking a potential license or sale
transaction that would enable the commercialization of Plenaxis(R) in
Europe and other territories."

   Concluding his comments, Mr. McLaughlin stated, "In the period
since the announcement of our strategic restructuring and refocusing,
we have advanced our core programs and strengthened our financial
position. We expect to end the year with approximately $60.0 million
in cash, cash equivalents and marketable securities."

   Conference Call

   There will be a conference call to discuss this press release
today beginning at 9:00 a.m. (EST). This call will be broadcast live
over the Internet at http://www.praecis.com, under "Investor
Relations." A telephonic replay of this call will be available
beginning at 12:00 Noon (EST), until midnight Friday, November 11,
2005, by calling 888-203-1112 (domestic toll-free) or 719-457-0820,
and entering the passcode 175611. This press release, including the
financial results relating to PRAECIS' third quarter, are also
available on PRAECIS' web site under "News Center."

   Fourth Quarter and Year-End Results

   The Company is planning to report fourth quarter and year-end 2005
results on February 3, 2006. For information regarding live webcasts
and investment community conference calls related to fourth quarter
and year-end results, please refer to http://www.praecis.com
approximately one week prior to the financial reporting release date.

   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, PPI-2458, 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 both the United States and Germany.

   This news release contains forward-looking statements, including
statements regarding the Company's expected cash position as of the
end of 2005 and its expected cash utilization through approximately
the end of 2007, the Company's plans for seeking a partnership
relating to the Company's Direct Select(TM) technology and for the
continued clinical development and partnering of PPI-2458, and the
Company's plans to seek a license or sale transaction relating to
Plenaxis(R) that would enable the commercialization of the product in
Europe and other territories. 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, unexpected expenditures, the interest of,
and financial and other terms required by, other parties with respect
to a possible license or sale transaction relating to Plenaxis(R), the
Company's ability to continue development of and successfully partner
its Direct Select(TM) technology and PPI-2458, unexpected results in
ongoing and future clinical or preclinical trials, and the need for
additional research and testing, including as a result of
unanticipated determinations by regulatory authorities, 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 the
various risks discussed in the Company's Quarterly Report on Form 10-Q
for the quarter ended September 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.
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                 PRAECIS PHARMACEUTICALS INCORPORATED
           Condensed Consolidated Statements of Operations(a)
                 (in thousands, except per share data)
                              (unaudited)

                                Three Months Ended  Nine Months Ended
                                  September 30,       September 30,
                                ------------------ -------------------
                                  2004      2005     2004      2005
                                 --------  -------  --------  --------

Revenues:
    Product sales               $  1,032  $   282  $  2,088  $  1,437
    Licensing and other
     revenues                         42    1,806       120     1,924
                                 --------  -------  --------  --------
        Total revenues             1,074    2,088     2,208     3,361

Costs and expenses:
    Cost of goods sold               181       97     1,461     3,889
    Research and development       7,369    5,333    23,044    18,892
    Sales and marketing            5,559      203    14,983     5,988
    General and administrative     1,885    1,489     7,063     5,456
    Restructuring and asset
     impairment                        -        -         -    28,680
                                 --------  -------  --------  --------
        Total costs and
         expenses                 14,994    7,122    46,551    62,905
                                 --------  -------  --------  --------

Operating loss                   (13,920)  (5,034)  (44,343)  (59,544)

Interest (expense) income, net       (34)    (134)      167      (339)
                                 --------  -------  --------  --------

Net loss                        $(13,954) $(5,168) $(44,176) $(59,883)
                                 ========  =======  ========  ========

Basic and diluted net loss per
 common share                   $  (1.33) $ (0.49) $  (4.22) $  (5.71)
                                 ========  =======  ========  ========

Weighted average number of
 basic and diluted common
 shares outstanding               10,476   10,494    10,457    10,488

(a) All per share amounts and shares outstanding have been
    retroactively restated for all periods presented to reflect a
    1-for-5 reverse stock split of the Company's common stock effected
    on November 1, 2005.



                 PRAECIS PHARMACEUTICALS INCORPORATED
                 Condensed Consolidated Balance Sheets
                            (in thousands)
                              (unaudited)


                                            December 31, September 30,
                                                2004          2005
                                            ------------ -------------

Cash and cash equivalents                   $    11,178  $     41,621
Marketable securities                            72,171         6,467
Accounts receivable and other current
 assets                                           2,097         1,585
Building - held-for-sale                              -        39,811
Net fixed assets                                 64,538         4,055
Inventory and other long-term assets              4,323         1,344
                                             -----------  ------------

     Total assets                           $   154,307  $     94,883
                                             ===========  ============

Current liabilities                         $     9,039  $     39,269
Long-term liabilities                            33,095         3,174
Total stockholders' equity                      112,173        52,440
                                             -----------  ------------

     Total liabilities and stockholders'
      equity                                $   154,307  $     94,883
                                             ===========  ============
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