Pappas Capital Announces the Passing of…

Panacos Pharmaceuticals, Inc. (Nasdaq: PANC), a biotechnology company dedicated to developing the next generation of antiviral therapeutic products, today announced the publication of an article authored by Panacos scientists and Dr. Michael Sakalian and colleagues at the University of Oklahoma Health Sciences Center in the June 2006 issue of the Journal of Virology. The article describes the results of a study elucidating the mechanism of action of PA-457, Panacos' lead drug candidate. PA-457 is the first in a new class of HIV drug candidates called Maturation Inhibitors that are designed to prevent the release of a key viral protein called Capsid from its precursor protein, Gag.