Neurogen Corporation Receives Notification from Nasdaq

BRANFORD, Conn.--(Business Wire)--
Neurogen Corporation (Nasdaq: NRGN), a drug development company
focused on improved drugs for psychiatric and neurological disorders,
announced today that on August 26, 2008, it received notice from The
Nasdaq Stock Market indicating that for the past 30 business days
Neurogen's common stock has not met the $1.00 minimum closing bid
price requirement for continued listing on the Nasdaq Global Market,
as specified by the Marketplace Rule 4450(a)(5). The notification
letter has no immediate effect on the listing of Neurogen's common
stock on the Nasdaq Global Market. Neurogen's common stock will
continue to trade on the Nasdaq Global Market under the symbol NRGN.

In accordance with Marketplace Rule 4450(e)(2), Neurogen has 180
calendar days, or until February 23, 2009, to regain compliance with
the minimum closing bid price requirement. To regain compliance, the
closing bid price of Neurogen common stock must meet or exceed $1.00
per share for a minimum of ten consecutive business days.

If Neurogen does not regain compliance by February 23, 2009,
Nasdaq will provide written notification to Neurogen that its common
stock will be delisted. At that time, the Company may appeal Nasdaq's
determination to delist its securities to a Listing Qualifications
Panel. Alternatively, Neurogen could apply to transfer its common
stock from the Nasdaq Global Market to the Nasdaq Capital Market if it
satisfies all requirements, other than the minimum closing bid price
requirement, for initial inclusion in that market set forth in
Marketplace Rule 4310(c). If Neurogen makes such an election and its
transfer application is approved, it will be eligible to regain
compliance with the minimum closing bid price requirement during a
second 180 calendar day compliance period.

About Neurogen

Neurogen Corporation is a drug development company focusing on
small-molecule drugs to improve the lives of patients suffering from
disorders with significant unmet medical need, including Parkinson's
disease, restless legs syndrome (RLS) insomnia, anxiety and pain.
Neurogen conducts its drug development independently and, when
advantageous, collaborates with world-class pharmaceutical companies
to access additional resources and expertise.

Safe Harbor Statement

This press release contains forward-looking statements that are
subject to the safe harbors created under the Securities Act of 1933
and the Securities Exchange Act of 1934. Forward-looking statements
include statements that refer to the Company's intentions to take
actions required to regain compliance with the listing standards
of The Nasdaq Global Market, the form, timing and effect of any such
actions, and the Company's ability to regain compliance. Readers are
cautioned that actual events that occur could differ materially from
those expressed in or contemplated by the forward-looking statements.
Factors that could cause actual events to differ include, but are not
limited to, events and developments affecting the Company's per share
stock price that may affect its ability to achieve the minimum bid
price requirement, the Company's ability to regain compliance with the
minimum bid price listing requirement, the Company's ability to
continue to meet the other Nasdaq listing requirements, which could
result in the delisting of the Company's common stock even if it
achieved compliance with the minimum bid price requirement, the
Company's ability to successfully appeal a delisting determination by
Nasdaq, and the Company's ability to transfer its listing to The
Nasdaq Capital Market. In addition, please refer to the risk factors
contained in the Company's SEC filings available at www.sec.gov,
including without limitation, the Company's annual report on Form 10-K
for the year ended December 31, 2007 and Neurogen's quarterly report
on Form 10-Q for the quarter ended June 30, 2008. Readers are
cautioned not to place undue reliance on any forward-looking
statements, which speak only as of the date on which they are made.
Neurogen undertakes no obligation to update or revise any
forward-looking statements for any reason.

Neurogen Corporation
Thomas A. Pitler, 203-315-3046
tpitler@nrgn.com

Copyright Business Wire 2008