Pharmacyclics Files Registration Statement for Rights Offering

SUNNYVALE, Calif., June 1 /PRNewswire-FirstCall/ -- Pharmacyclics, Inc.
(Nasdaq: PCYC) today announced that it filed a registration statement on Form
S-3 with the Securities and Exchange Commission (the "SEC") for a rights
offering to its existing stockholders. The rights offering will be made
through the distribution of non-transferable subscription rights to purchase
shares of the Company's common stock, par value $0.0001 per share, at a
subscription price to be determined. Assuming the rights offering is fully
subscribed, the Company will receive gross proceeds of approximately $24
million, less expenses of the rights offering. The Company filed this rights
offering to raise equity capital in a cost-effective manner that gives all of
Pharmacyclics' stockholders the opportunity to participate. The net proceeds
will be used for general working capital purposes, including the repayment of
certain indebtedness of Pharmacyclics under an existing promissory note in
favor of Robert W. Duggan, our Chairman of the Board and Chief Executive
Officer, and the beneficial owner of approximately 27% of Pharmacyclics'
outstanding common stock.

The reason the company decided to raise up to $24 million in this offering was
to ensure that in the event other shareholders chose not to exercise their
rights, Mr. Duggan would still be able to participate up to his proportionate
27% interest and provide Pharmacyclics with sufficient capital to satisfy the
$6.4 million note payable to Mr. Duggan. Accordingly, the proceeds from the
rights offering will fully repay all existing indebtedness of the company.

The rights offering includes an oversubscription privilege which permits each
rights holder that exercises its rights in full to purchase additional shares
of common stock that remain unsubscribed at the expiration of the offering.
This oversubscription privilege is subject to (i) the availability and
allocation of shares among holders exercising this oversubscription privilege
and (ii) a maximum number of shares for which stockholders can oversubscribe
without endangering the availability of the Company's net operating loss carry
forwards under Section 382 of the Internal Revenue Code (the "NOLs"), in each
case as further described in the rights offering documents.

A registration statement relating to these securities has been filed with the
SEC but has not yet become effective. The securities may not be sold nor may
offers to buy be accepted prior to the time the registration statement becomes
effective. The rights will be issued to all shareholders as of a record date
which has yet to be determined. The exercise price of the shares also has yet
to be determined. We will provide notice of the record date and exercise price
in the future at such time as it is determined. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such state.

About Pharmacyclics
Pharmacyclics(R) is a clinical-stage biopharmaceutical company focused on
developing and commercializing innovative small-molecule drugs for the
treatment of immune mediated disease and cancer. The purpose of the company is
to create a profitable business by generating income from products it
develops, licenses and commercializes, either with one or several potential
partners or alone as may best forward the economic interest of its
stakeholders. The company endeavors to create novel, patentable,
differentiated products that have the potential to significantly improve the
standard of care in the markets it serves. Presently, Pharmacyclics has four
product candidates in clinical development and two product candidates in
pre-clinical development. It is Pharmacyclics' business strategy to establish
collaborations with large pharmaceutical and biotechnology companies for the
purpose of generating present and future income in exchange for adding to
their product pipelines. Pharmacyclics strives to generate collaborations that
allow it to retain valuable territorial rights and simultaneously fast forward
the clinical development and commercialization of its products. The Company is
headquartered in Sunnyvale, California and is listed on NASDAQ under the
symbol PCYC. To learn more about how Pharmacyclics advances science to improve
human healthcare visit us at http://www.pharmacyclics.com.

NOTE: This announcement may contain forward-looking statements made in
reliance upon the safe harbor provisions of Section 27A of the Securities Act
of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,
as amended, including statements regarding our expectations and beliefs
regarding our future results or performance. Because these statements apply to
future events, they are subject to risks and uncertainties. When used in this
announcement, the words "anticipate", "believe", "estimate", "expect",
"expectation", "should", "would", "project", "plan", "predict", "intend" and
similar expressions are intended to identify such forward-looking statements.
Our actual results could differ materially from those projected in the
forward-looking statements. Additionally, you should not consider past results
to be an indication of our future performance. For a discussion of the risk
factors and other factors that may affect our results, please see the Risk
Factors section of our filings with the Securities and Exchange Commission,
including our annual report on Form 10-K and quarterly reports on Form 10-Q.
We do not intend to update any of the forward-looking statements after the
date of this announcement to conform these statements to actual results, to
changes in management's expectations or otherwise, except as may be required
by law.

SOURCE Pharmacyclics

Ramses Erdtmann, Vice President of Finance of Pharmacyclics, +1-408-215-3325