Dr. Paul Averback reports

NYMOX UPDATE

Nymox Pharmaceutical Corp. has provided additional information concerning recent changes in the company's board of directors and management, as well as additional information regarding the company's conclusion that a potential transaction was not in the best interests of the Nymox and its shareholders.

Nymox recently terminated the employment of Randall Lanham, the company's former in-house legal counsel, and Christopher Riley, the company's former chief financial officer. Mr. Lanham and Mr. Cutler were removed from the board.

Mr. Lanham and Mr. Riley previously presented Nymox with a transaction with a potential business partner. The company undertook a thorough discussion and deliberation regarding the merits of the proposed transaction and its value to the company and its shareholders. After thorough consideration, the company rejected the proposed transaction for several reasons, including, but not limited to, the following:

• Under the terms of the proposed transaction, Mr. Riley and Mr. Lanham would have immediately been awarded up to 18 million shares of common stock (six million) and future shares (12 million) of the company.
• Mr. Riley, after serving as CFO of Nymox for approximately three months, would have been appointed to the company's board, along with an executive of the potential business partner, with whom Mr. Riley has an existing business relationship, and Mr. Lanham (legal counsel), Mr. Riley, Mr. Cutler (board member and attorney) and the executive of the potential business partner would comprise a majority of Nymox's board.
• Under the terms of the proposed transaction, the potential business partner would not pay any cash for certain rights of the company that it received; rather, it would lend cash to the company, creating a debt on the company's balance sheet.
• In their attempt to induce Nymox to accept the terms of the proposed transaction, Mr. Riley and Mr. Lanham represented the terms involving their proposed 18 million shares of the proposed transaction and board control as being boilerplate while simultaneously being aware that the terms of the proposed transaction would have resulted in extraordinary awards to Mr. Riley and Mr. Lanham of up to 18 million shares of common stock and future shares of the company, membership and control of the board, as well as other personal benefits.
• Nymox discovered shortly after presentation of the proposed transaction that Mr. Riley, Mr. Lanham and Mr. Cutler (board member) served as president and chief executive officer, founder, and general counsel, respectively, of an unrelated company for several years without disclosing their roles to Nymox.
• Nymox was informed by one or more shareholders that Mr. Riley and Mr. Lanham have in the past few years or longer sought financing for their unrelated company from those Nymox shareholders, but Mr. Lanham did not disclose this to the Nymox board or to Nymox's chief executive officer.

Dr. Paul Averback, chief executive officer of Nymox, said: "Our fiduciary responsibilities are first and foremost to the shareholders of Nymox, and the above terms were not in the best interests of Nymox shareholders. We took appropriate corrective actions and will continue to do so."

Nymox is in the process of submitting applications for the approval to market the company's first-in-class drug, Nymozarfex, to treat the symptoms of benign prostatic hyperplasia (BPH). BPH is one of the most common conditions affecting middle-aged and elderly men throughout the world. BPH can be devastating to men who suffer from the condition. Current treatments are associated with numerous intolerable side effects, including sexual problems, such as impotence and retrograde ejaculation. Medications for BPH have been associated with prostate cancer, depression, gynecomastia and other adverse effects. The majority of men stop taking the available medications due to these and other problems. Surgery is often needed for advanced BPH. Surgery is usually effective, but it is not without risks and the discomforts of surgery, and BPH surgery has side effects such as permanent retrograde ejaculation for many patients.

About Nymozarfex (fexapotide)

Nymozarfex is given in an in-office procedure that is administered in a few minutes without need of anesthesia or analgesia. The drug has been tested in clinical trials involving overall more than 1,750 patients with over 1,600 injections administered, including over 1,200 fexapotide administrations. Fexapotide has led to significant long-term improvements and has shown an excellent safety profile without the side effects normally associated with existing BPH treatments.

We seek Safe Harbor.