COLEY PHARMACEUTICAL GROUP RAISES $25 MILLION IN PRIVATE FINANCING

WELLESLEY, MA, 29 SEPTEMBER 2004 - Coley Pharmaceutical Group, Inc. today announced that it has raised $25 million in private round of funding. Existing investors Thomas, McNerney & Partners, Venrock Associates, Techno Venture Management (TVM), and Global Life Science Ventures all participated in the financing.

“We are pleased by the ongoing support from our existing investors for our clinical-stage products, pipeline and strategy. Our lead TLR Therapeutic™ products, ProMune™ for the treatment of cancer, Actilon™ for Hepatitis C, and our Sanofi-Aventis-partnered CpG product for allergic asthma, continue to achieve significant clinical milestones, said Robert L. Bratzler, Ph.D., Coley‘s President and Chief Executive Officer. “We have positive interim results from our randomized, multi-center Phase II clinical studies for ProMune and are ready to move to pivotal Phase III trials in front line non-small cell lung cancer (NSCLC); we also anticipate having Phase Ib clinical data on Actilon in chronic Hepatitis C patients at the end of this year; and we are pleased that Sanofi-Aventis is in Phase I trials with our asthma-allergy product.”

Coley will apply these funds to the continued the development of ProMune, which is in a randomized, controlled, multi-center Phase II clinical trials in NSCLC and advanced melanoma. Earlier this year, Coley presented interim results demonstrating improved responses in the first-line treatment of patients with advanced NSCLC using ProMune combined with chemotherapy compared to standard chemotherapy alone. Proceeds from this financing will also be applied to the ongoing clinical development of Actilon, the company’s lead anti-viral drug candidate to treat Hepatitis C which is scheduled to enter Phase II next year.

About Coley Pharmaceutical Group
Coley Pharmaceutical is an international biopharmaceutical company that discovers and develops investigational TLR Therapeutics™, a new class of drugs that direct the human immune system to treat cancers, infectious diseases, asthma and allergy. Coley has partnered programs with Aventis, Chiron, GlaxoSmithKline and the United States Government. Coley is headquartered in Wellesley , Massachusetts , USA , and has research and development laboratories in Langenfeld , Germany , and Ottawa , Canada . For further information please visit www.coleypharma.com .