ENTL Entelos Regs

    


Entelos Inc.



Entelos, Inc. (LSE: ENTL) announces today that it has finalized the working
capital adjustment to the initial purchase consideration for the acquisition of
Iconix Biosciences, Inc. ("Iconix"), which closed on 31 August 2007. Entelos had
previously announced that the initial consideration would be satisfied by the
issue of up to 12,776,658 Entelos shares but the working capital adjustment has
reduced this payment to 9,278,771 shares.

Based on the closing price of 32.5 pence for Entelos shares on 31 August 2007
(being the effective date of acquisition), the initial consideration of
9,278,771 shares is valued at approximately $6.1 million and approximately $4.5
million at the closing price of 23.5 pence for Entelos shares on 6 November, the
last practicable date prior to this announcement.

The merger agreement also provided for a potential maximum earn out payment of
$25 million if certain financial milestones are achieved. A portion of the earn
out payment, if any, will become payable on 31 August 2008, the one year
anniversary of the effective date of the acquisition, and the remainder of any
earn out payment will become payable thereafter based on the achievement of
certain other milestones. Such deferred consideration is to be also satisfied in
Entelos shares, which will be based on a 10-day average closing price for the
period prior to any such earn out payment. In connection with this potential
earn out payment the Company issued 7,935,328 Entelos shares into an escrow
account on 6 September 2007. Any earn out shares not issued to former Iconix
shareholders will be returned to the Company.

All of the shares to be issued in connection with the initial consideration will
be subject to a lock up agreement that provides that subject to certain limited
exemptions (including with the prior written consent of Entelos) the issued
shares will not be disposed of for 12 months following the effective date of the
merger of 31 August 2007. Earn out shares, if any, issued on 31 August 2008 will
be subject to a six-month lock up from the date of issue.

Accordingly as at the date of this announcement, Entelos current issued share
capital comprises 75,442,515 ordinary shares, of which 7,935,328 have been
issued into the escrow account referred to above.

                          For further information please contact:

Entelos, Inc.
Alan Blazei, CFO                                                        Tel: +1 650 572 5400
Jill Fujisaki, VP Investor Relations

Evolution Securities
Bobbie Hilliam, Associate Director                                  Tel +44 (0) 20 7071 4300

Buchanan Communications
Lisa Baderoon / Mary-Jane Johnson                                   Tel +44 (0) 20 7466 5000

Notes for Editors

About Entelos

Entelos, Inc. (www.entelos.com) is a US-based life sciences company applying
next-generation predictive technologies to revolutionize the way medicines are
discovered, developed, and utilized. The Company leverages its proprietary in
silico disease models, "virtual patients", and toxicology reference systems to
develop safer and more effective drugs and support pharmaceutical R&D and
commercialization. In addition to internal drug programs in rheumatoid arthritis
and women's health, Entelos provides customized technology and research services
to global pharmaceutical and health-care companies in cardiovascular diseases,
asthma, obesity, diabetes, hematopoeisis (anemia), cholesterol metabolism, and
skin sensitization. The company is also developing a model in oncology and is
collaborating with the FDA to build a model of drug-induced liver injury.
Entelos offers cost-effective drug development capabilities through its
strategic alliance with India-based Jubilant Biosys.

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