August 29, 2002

Neurochem files Investigational New Drug application for Alzhemed™ to treat Alzheimer's Disease.

Neurochem Inc. (TSX : NRM) announced today that it has filed an Investigational New Drug (IND) application with the U.S. Food and Drug Administration for Alzhemed™, the company's lead candidate for the treatment of Alzheimer's Disease (AD). The IND submission precedes the initiation of a Phase II clinical trial in the United States for patients suffering from mild to moderate stage AD.

"The IND filing for the initiation of Phase II trials for Alzhemed is an important milestone within our Alzheimer's disease program," said Dr. Louis R. Lamontagne, President and CEO of Neurochem. "In planning the Phase II trial, we have adopted a graduated, strategic approach, focusing this trial on Alzhemed's safety, tolerability and pharmacokinetic profiles in patients. Our objective is to optimize the subsequent North American efficacy trials based on the results obtained in this Phase II clinical study."

A Phase II clinical trial, scheduled to begin in the U.S. this fall, is expected to investigate the safety, tolerability and pharmacokinetic profile of Alzhemed in patients with mild to moderate AD. Specifically, the study is planned to determine optimal dosing regimens for subsequent pivotal efficacy trials. The effect of Alzhemed on the amyloid ß (Aß) protein (the pharmacological target for drug activity) levels in cerebrospinal fluid and plasma would also be evaluated. The study is designed as a multicenter, randomized, double-blind, placebo-controlled and parallel design study. A total of 48 AD patients would receive placebo or Alzhemed (3 dose levels) for a period of three months.

Neurochem has previously investigated the safety, tolerability and pharmacokinetic profiles of Alzhemed in healthy volunteers in three single dose and one multiple dose Phase I clinical trials involving a total of 117 subjects. In all three studies, Alzhemed was shown to be safe and well tolerated at the anticipated therapeutic dose in both young and elderly volunteers.

About Alzhemed™

Alzhemed™ is an oral small organic molecule that has been specifically designed to modify the course of the disease by interfering with the association between glycosaminoglycans (GAGs) and Aß amyloid protein. Alzhemed™ as part of a "disease modifying" class of drug candidates, is expected to act at two levels: to prevent and stop the formation and deposition of amyloid fibrils in the brain and in binding to soluble Aß, to inhibit the inflammatory response associated with amyloid build-up in Alzheimer's Disease. Its anti-amyloid effectiveness has been demonstrated in an aggressive transgenic mouse model of brain amyloid with a significant 61% reduction in Aß plasma levels and a 30% reduction in Aß brain soluble and insoluble fractions after only 8 weeks of treatment.

About Neurochem

Neurochem is an industry leader in the development of therapeutic drugs and diagnostic tools for central nervous system (CNS) and amyloid-related diseases associated with aging. The Company has to date advanced three drug candidates to clinical trials: Fibrillex™, for the life-threatening orphan disease, secondary amyloidosis in a pivotal Phase II/III clinical trial, Alzhemed™, for the treatment of Alzheimer's Disease advancing to Phase II clinical trials, and Cerebril™, for hemorrhagic stroke also advancing to Phase II clinical trials. The Company has built a strong product pipeline by developing a novel, proprietary series of compounds that inhibit the formation, deposition and toxic effects of amyloid fibrils within the body. Neurochem's overall therapeutic programs target CNS disorders including Alzheimer's disease, epileptic seizures caused by head trauma or acute brain injury, and hemorrhagic stroke (due to cerebral amyloid angiopathy), and other life-threatening diseases including systemic amyloidosis and amyloid-associated diabetes type II. (www.neurochem.com).

All of the statements contained in this news release, other than statements of fact which are independently verifiable at the date hereof, are forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown. Some examples of known risks are: the impact of general economic conditions, general conditions in the pharmaceutical industry, changes in the regulatory environment in the jurisdictions in which Neurochem does business, stock market volatility, fluctuations in costs, and changes to the competitive environment due to consolidation or otherwise. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements.

For further Information, please contact:
Dr. Lise Hébert
Vice President, Corporate Communications
lhebert@neurochem.com

275 Armand-Frappier
Laval (Quebec)
H7V 4A7
Tel: (450) 680-4500
Fax: (450) 680-4501

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