Tercica Added to the Nasdaq Biotechnology Index

Tercica Added to the Nasdaq Biotechnology Index 


SOUTH SAN FRANCISCO, Calif., May 17  /PRNewswire-FirstCall/ -- Tercica, Inc.
(NASDAQ:TRCA) announced today that it will be added to the NASDAQ Biotechnology
Index (R) (NASDAQ:NBI) effective with the market open on May 23, 2005.

Membership in the Index is determined primarily by specific eligibility
criteria, including market value, average daily share volume and seasoning as a
public company, among other criteria. All securities in the Index are listed on
the NASDAQ National Market.

"Tercica is pleased to be included in the NASDAQ Biotechnology Index," stated
Tim Lynch, Chief Financial Officer of Tercica. "We believe this addition will
enhance Tercica's visibility with the investment community at this particularly
exciting time in the Company's history." The U.S. Food and Drug Administration
recently accepted Tercica's NDA for Increlex with a Priority Review.  The
Company is preparing for a potential product launch for Increlex in January
2006.

Launched in 1993, the NASDAQ Biotechnology Index includes companies that are
classified as pharmaceutical or biotechnology by the FTSE(TM) Global
Classification System. The Index is ranked on a semi-annual basis in May and
November and is the basis for the iShares NASDAQ Biotechnology Index Fund(SM)
(AMEX:IBB).

About Increlex(TM)

Tercica, Inc., acquired exclusive rights to develop, commercialize and
manufacture Increlex from Genentech, Inc. Tercica currently is conducting a
broad-scale Phase IIIb clinical study to evaluate the safety and efficacy of
Increlex in children with Primary IGFD. These patients will have less severe
disease than the patients in Tercica's Phase III studies included in the
company's NDA.

About Tercica

Tercica, Inc. is a biopharmaceutical company focused on the development and
commercialization of products to improve endocrine health. The company's first
product candidate, Increlex(TM) (mecasermin (rDNA origin) injection), or
recombinant human insulin-like growth factor-1 (rhIGF-1), is being developed
for the treatment of short stature and associated metabolic disorders. For
further information on Tercica, please visit http://www.tercica.com/.

Safe Harbor Statement

Except for the historical statements contained herein, this press release
contains forward-looking statements, including without limitation, that the
Company is preparing for a potential product launch for Increlex(TM) in January
2006.  Because Tercica's forward-looking statements are subject to risks and
uncertainties, there are important factors that could cause actual results to
differ materially from those in the forward-looking statements. These factors
include without limitation: (1) those risks and uncertainties disclosed from
time to time in reports filed by Tercica with the SEC, most recently Tercica's
Form 10-Q filed on May 16, 2005; and (2) that there would be no product launch
if the FDA does not grant Tercica marketing approval, grants Tercica marketing
approval covering so few patients that it is not commercially reasonable for
the Company to launch, or grants Insmed Incorporated's product marketing
exclusivity under the Orphan Drug Act that would block Tercica from being able
to market or sell its product.  These statements are based on information as of
May 17, 2005, and the Company assumes no obligation to update any
forward-looking statement. 

DATASOURCE: Tercica, Inc.



CONTACT:  Kim Kraemer, Vice President, Corporate Communications &

Investor Relations of Tercica, Inc., [phone], or





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

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