May 7, 2003

Neurochem licenses its Diabetes Technology to Innodia Inc
Neurochem to Focus on Diseases of the Central Nervous System

- Neurochem, Inc. (TSX: NRM) and Innodia Inc. announced today the conclusion of an agreement whereby Neurochem has licensed to Innodia Inc. its intellectual property rights relating to Neurochem's pre-clinical diabetes project in exchange for an important stake in Innodia. In addition to licensing its diabetes technology to Innodia, Neurochem is also participating in the $7.0-million private placement announced today by Innodia. Neurochem becomes Innodia's largest shareholder as a result of these two transactions with 31.1% of Innodia's total issued capital. Dr. Francesco Bellini, Chairman and CEO of Neurochem, and Dr. Francine Gervais, Neurochem's Vice President of Research and Development, will join Innodia's Board of Directors.

"This transaction clearly demonstrates Neurochem's determination to strategically focus on its core expertise and to become a focal point for excellence on diseases of the central nervous system" said Dr. Francesco Bellini, Chairman and CEO of Neurochem. "We are aligning all of our human and financial resources toward the development and commercialization of our current product pipeline, including Fibrillex™ for the treatment of secondary AA amyloidosis."

"At the same time, the structure of this agreement underscores Neurochem's confidence in the strong potential of this technology for the treatment of diabetes. Within Innodia, Neurochem's diabetes project will receive the benefits of focused resources and proven scientific expertise in the field of diabetes. We strongly believe that by contributing our diabetes project to a company with expertise and focus in the growing field of diabetes, we are considerably enhancing the value of this project." he added.

"Innodia is committed to discovering and developing innovative new medicines to improve the lives of the millions of people with diabetes," said Dr. Claude Vezeau, President and Chief Executive Officer of Innodia. "The acquisition of this technology from Neurochem will help us achieve our mission and is an excellent opportunity to leverage our extensive experience in diabetes drug development."

About Diabetes Type 2

Diabetes is a disease whereby the body does not produce or properly use insulin. Insulin is a hormone that is needed to convert sugar, starches and other food into energy needed for daily life. In diabetes type 2, also known as non-insulin dependent diabetes or adult-onset diabetes, the body fails to properly use insulin, which is needed to transport sugar from the blood into the cells. In these patients, the pancreas does not produce enough insulin or ignores insulin.

Approximately 90% of the world's more than 150 million diagnosed diabetics have diabetes type 2. Of these, the scientific literature reports that more than 90% are associated with amyloid deposits in the beta cells of the pancreas, comprised primarily of islet amyloid polypeptide (IAPP). In the United States there are an estimated 595,000 new cases of diabetes type 2 diagnosed each year, and health care and other costs directly related to diabetes types 1 and 2 treatment amount to US$98 billion annually. It is estimated that the incidence of the disease will affect a global population of several hundred million people by 2025.

About Innodia

Innodia is a biopharmaceutical company engaged in the discovery and development of novel therapeutics for the treatment of type 2 diabetes with potential clinical applications from early diabetes to the prevention of complications. The Company's portfolio includes four compounds in development, two of which are expected to enter Phase I clinical trials in the first half of 2004. These compounds offer four novel and complementary approaches to the treatment of diabetes, a disease affecting millions of people worldwide. Innodia's head office is located in Montreal.

About Neurochem

Neurochem is a product-driven, specialty pharmaceutical company offering a new class of drug candidates to prevent and stop the progression of diseases for which no cure exists. The Company's strong and growing pipeline aims at fulfilling unmet medical needs and is focused on disorders of the central nervous system and amyloid-related diseases. Neurochem's most advanced drug candidate is Fibrillex™, currently in pivotal Phase II/III clinical development for the treatment of secondary AA amyloidosis, a fatal disease. Two other programs include Alzhemed™, which has completed a Phase II clinical trial for the treatment of Alzheimer's disease; and Cerebril™, which is undergoing a Phase II clinical trial for the treatment of hemorrhagic stroke due to cerebral amyloid angiopathy. At the pre-clinical development stage, the Company has an innovative neurological program aimed at treating epileptic seizures induced by traumatic brain injury. (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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