Pharmacopeia Announces Further Reductions to Workforce

PRINCETON, N.J., Aug. 5, 2008 (PRIME NEWSWIRE) -- Pharmacopeia (Nasdaq:PCOP), an
innovator in the discovery and development of novel small molecule therapeutics,
has implemented the restructuring noted in its recent quarterly earnings release
and conference call. This effort includes an immediate workforce reduction of
approximately 40 percent through termination of positions. In May 2008,
Pharmacopeia reduced its workforce by approximately 15 percent through attrition
and termination of positions. With these two reductions, the company will have
reduced its workforce in excess of 50 percent from previous levels. The company
will continue to fulfill its contractual commitments to its corporate partners.

"This decision is extremely difficult but necessary as it will allow us to
better focus on our strategic initiatives," said Joseph A. Mollica, Ph.D.,
Chairman of the Board of Directors and Interim President and Chief Executive
Officer of Pharmacopeia. "We are grateful to our talented staff who have helped
the company meet recent milestones."

As a result of its reductions in operating expenditures, Pharmacopeia expects
the cash burn for the quarter ending December 31, 2008 to be approximately $10
million, exclusive of severance related costs. The company expects its quarterly
burn to be less than $10 million in 2009.

Pharmacopeia plans to begin a Phase 2 clinical trial for PS433540, focusing on
the indication of diabetic nephropathy. The company is also considering
opportunities to partner the development of PS433540 for various indications and
is evaluating various strategic initiatives intended to further the development
of the company's business and enhance shareholder value.

In the third quarter of 2008, Pharmacopeia expects to record a charge of
approximately $3 million in connection with the severance provided to employees
directly affected by the latest reduction in staffing.

ABOUT PHARMACOPEIA

Pharmacopeia is a clinical development stage biopharmaceutical company dedicated
to discovering and developing novel small molecule therapeutics to address
significant medical needs. The company has a broad portfolio of clinical and
preclinical candidates under development internally or by partners including
nine clinical compounds in Phase 2 or Phase 1 development addressing multiple
indications including diabetic nephropathy, hypertension, muscle wasting,
inflammation and respiratory disease. The company is leveraging its fully
integrated drug discovery platform to sustain the growth of its development
pipeline. Pharmacopeia has established strategic alliances with major
pharmaceutical and biotechnology companies, including Bristol-Myers Squibb,
Celgene, Cephalon, GlaxoSmithKline, Schering-Plough, and Wyeth Pharmaceuticals.
For more information please visit the company's website at
http://www.pharmacopeia.com.

This press release, and oral statements made with respect to information
contained in this press release, constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include those which express plan, anticipation,
intent, goal, contingency or future development and/or otherwise are not
statements of historical fact. These statements are based upon management's
current expectations and are subject to risks and uncertainties, known and
unknown, which could cause actual results and developments to differ materially
from those expressed or implied in such statements. These forward-looking
statements include, but are not limited to, statements about the successful
implementation of Pharmacopeia's strategic plans, Pharmacopeia's anticipated
operating results, financial condition, liquidity and capital resources,
Pharmacopeia's ability to raise additional capital, Pharmacopeia's plans to
develop PS433540, a product candidate from its DARA program, Pharmacopeia's
Phase 2 clinical studies with respect to PS433540, including timing and expected
outcomes of such studies, Pharmacopeia's plans to develop PS178990, a product
candidate from its SARM program, Pharmacopeia's Phase 1 clinical studies with
respect to PS178990, including timing and expected outcomes of such studies,
Pharmacopeia's plans to develop PS031291, a product candidate from its chemokine
receptor CCR1 program, Pharmacopeia's estimates of the market opportunities for
its product candidates, including PS433540, PS178990 and PS031291,
Pharmacopeia's ability to successfully perform under its collaborations with
Bristol-Myers Squibb, Cephalon, GlaxoSmithKline, Schering-Plough and Wyeth,
Pharmacopeia's ability to build its pipeline of novel drug candidates through
its own internally-funded drug discovery programs, third party collaborations
and in-licensing, Pharmacopeia's expectations concerning the development
priorities of its collaborators, their ability to successfully develop compounds
and its receipt of milestones and royalties from the collaborations,
Pharmacopeia's expectations concerning the legal protections afforded by U.S.
and international patent law, Pharmacopeia's ability to pursue the development
of new compounds and other business matters without infringing the patent rights
of others, additional competition, and changes in economic conditions.

Further information about these and other relevant risks and uncertainties may
be found in Pharmacopeia's Reports on Form 8-K, 10-Q and 10-K filed with the
U.S. Securities and Exchange Commission. Pharmacopeia urges you to carefully
review and consider the disclosures found in its filings which are available in
the SEC EDGAR database at http://www.sec.gov and from Pharmacopeia at
http://www.pharmacopeia.com. All forward-looking statements in this press
release and oral statements made with respect to information contained in this
press release are qualified entirely by the cautionary statements included in
this press release and such filings. These risks and uncertainties could cause
actual results to differ materially from results expressed or implied by such
forward-looking statements. These forward-looking statements speak only as of
the date of this press release. Pharmacopeia undertakes no obligation to (and
expressly disclaims any such obligation to) publicly update or revise the
statements made herein or the risk factors that may relate thereto whether as a
result of new information, future events, or otherwise.

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CONTACT: Pharmacopeia, Inc.
Brian M. Posner
(609) 452-3643
ir_pr@pcop.com

Burns McClellan
Catherine Watts Collier
(212) 213-0006
ccollier@burnsmc.com