Maxim Pharmaceuticals, Inc. (NASDAQ:MAXM)(SSE:MAXM) today reported financial results for the fourth quarter and the year ended September 30, 2005. The net loss applicable to common stock for the fourth quarter ended September 30, 2005 totaled $5.9 million, or $0.21 per share, compared to a net loss applicable to common stock of $14.5 million, or $0.51 per share, for the same period of the prior year. The net loss applicable to common stock for the year ended September 30, 2005, totaled $27.7 million, or $0.97 per share, compared to a net loss applicable to common stock of $45.0 million, or $1.59 per share, for the prior fiscal year. The decrease in net loss for the quarter and fiscal year resulted primarily from a reduction in research and development expenses due to the substantial completion of the Company's Ceplene clinical trials and a reduction in expenses resulting from the October 2004 and February 2005 work force reductions. These decreases were offset by an increase in general and administrative expenses due to expenses related to the proposed merger with EpiCept Corporation, litigation expenses and compliance with Sarbanes-Oxley.

The Company had cash, cash equivalents and investments totaling $23.0 million at September 30, 2005, and used net cash of $27.6 million in its operations during the year ended September 30, 2005.

"We continue to be enthusiastic about our apoptosis modulator program. In March 2005, our licensee, Myriad Genetics, entered a Phase 1 human clinical trial with the most advanced candidate from this program. We also expect to independently file an IND in the first half of 2006 with one of our other lead candidates from this program and establish additional partnerships with our other compounds during 2006. Separately we plan to file an application for approval of Ceplene in Europe during the first half of 2006 based on our Phase 3 acute myeloid leukemia, AML, trial and are seeking a strategic partner to advance the development and potential commercialization of Ceplene in AML and other indications," stated Larry G. Stambaugh, Maxim's Chairman and Chief Executive Officer.

"In September 2005 we announced that we had entered into a definitive merger agreement with EpiCept Corporation. This transaction will combine two companies to create a specialty pharmaceutical company with a balanced portfolio of pain management and oncology product candidates. We believe the merger with EpiCept is a good strategic advancement for Maxim shareholders that creates a broader, more balanced portfolio of product candidates with significant market potential," continued Mr. Stambaugh.

The Company is currently soliciting stockholders as of the record date, November 11, 2005, to approve and adopt the merger agreement with EpiCept Corporation and to approve the merger. The Company had previously announced that the special meeting of stockholders would be held on December 21, 2005 at 8:00 a.m., local time, at Maxim's headquarters in San Diego, California for the purpose of considering and voting on a proposal to approve and adopt the Agreement and Plan of Merger, dated as of September 6, 2005, among EpiCept, Magazine Acquisition Corp., a wholly-owned subsidiary of EpiCept and Maxim. Stockholders of record who have any questions or need assistance in voting their proxy card, may contact the Company's proxy solicitor, MacKenzie Partners, Inc., in North America toll free at 800-322-2885 or direct at 212-929-5500 and in Sweden may contact WM Data directly at +46-8-775-02-18.

EpiCept has filed a registration statement that contains a definitive proxy statement/prospectus with the Securities and Exchange Commission. STOCKHOLDERS OF MAXIM AND OTHER INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS TO THE PROXY STATEMENT/PROSPECTUS) REGARDING THE PROPOSED MERGER BECAUSE IT CONTAINS IMPORTANT INFORMATION ABOUT EPICEPT, MAXIM AND THE PROPOSED MERGER. Maxim's stockholders may also obtain a free copy of the definitive proxy statement/prospectus, as well as other filings containing information about Maxim and EpiCept, without charge, at the SEC's Internet site (http://www.sec.gov). Copies of the proxy statement/prospectus and Maxim's other filings with the SEC can also be obtained, without charge, by directing a request to Maxim Pharmaceuticals, 8899 University Center Lane, Suite 400, San Diego, CA 92122, Attention: Investor Relations, Telephone: (858) 453-4040 or MacKenzie Partners, Inc. toll free at (800) 322-2885, or direct at (212) 929-5500. If you are located in Sweden, you can call direct at +46-8-775-02-18.

Maxim Overview

Maxim is a biopharmaceutical company dedicated to developing innovative cancer therapeutics. Maxim has completed one Phase 3 clinical trial of Ceplene(TM) plus Interleukin-2 combination therapy as a remission maintenance therapy for patients with acute myeloid leukemia. Maxim is also engaged in the discovery and development of small-molecule apoptosis inducers and inhibitors to treat a wide range of disorders, including cancers and degenerative diseases. Using its proprietary high-throughput screening technology and its chemical genetics approach several lead compounds have been identified. Current efforts continue toward the development of these compounds either internally or through strategic collaborative arrangements.