Morphotek announces contract manufacturing and development collaboration agreement with Baxter Healthcare Corporation

Exton, PA - October 20, 2003 - Morphotek Inc announced today that it has signed a Contract Manufacturing and Development Collaboration Agreement for use of its proprietary MORPHODOMA® technology for the development of high-titer cell lines for the manufacture of monoclonal antibody products and other biologics.

MORPHODOMA® technology is a platform process that can rapidly evolve low-titer production cell lines used in the manufacture of antibody or other biologics to high-titer lines that are suitable for scaleable commercial manufacturing. Under the terms of the reciprocal Agreement, client-specific manufacturing programs will be offered Morphotek's MORPHODOMA® services for cell line titer optimization and Baxter's expertise in process development and scaleable manufacturing of biological product for commercialization.

"This partnership provides a significant opportunity for our clients to leverage the combined power of Morphotek's MORPHODOMA® platform with Baxter's process development expertise," said Thomas Glanzmann, senior vice president and president, Baxter BioScience. "This synergistic relationship will expedite the development of novel therapies into the clinic and ultimately into the marketplace."

"We are delighted to announce a collaboration with one of the preeminent worldwide manufacturers of biologics and their endorsement of our MORPHODOMA® technology to develop high-titer antibody producer cell lines for the manufacturing of antibody and other protein therapeutics," stated Nicholas C. Nicolaides, president, and chief executive officer of Morphotek.

"Combining our MORPHODOMA® technology with Baxter Healthcare Corporation remarkable manufacturing capabilities will offer clients an unprecedented ability to rapidly move from low-titer bench top production to high production manufacturing grade cell lines," added Philip M. Sass, executive vice president and chief operating officer of Morphotek. "This combination of technology will offer clients a seamless integration of cell line development and manufacturing capacity at scale under cGMP conditions."

About Morphotek

Morphotek (www.morphotek.com)is a biotechnology company focused on the generation of proprietary organisms for product development using a patented platform technology that can enhance the natural process of genetic evolution within a targeted host. The technology has been successfully applied to microbes, plants, and mammals to yield genetically diverse offspring that are suitable for pharmaceutical and agricultural product development in the areas of antibody therapeutics, protein therapeutics, product manufacturing, drug target discovery, and improved output traits for commercial applications. The company is currently focusing its platform on the development and manufacturing of therapeutic antibodies for the treatment of cancer, inflammation and infectious disease.