SIGA and TransTech Pharma in Collaboration to Develop Smallpox Drug

New York and High Point, NC, October 3, 2002 -- SIGA Technologies, Inc. (NASDAQ: SIGA) and (FRANKFURT: SGW 919 473) and privately held TransTech Pharma, Inc., today announced the formation of a drug discovery collaboration using TransTech Pharma's proprietary TTP Translational Technology^® and SIGA's proprietary biological targets to seek small molecule therapeutics for the treatment of infectious diseases and neutralization of potential biowarfare agents. 

As a result of the collaboration, the companies seek to discover novel classes of anti-infectives to treat infectious diseases, focusing on biowarfare agents including smallpox and anthrax.  Dr. Dennis Hruby, Chief Scientific Officer of SIGA, said, "If the results of the collaboration are successful, we could have molecules targeting agents of biowarfare in animal models in 2003."  Dr. Hruby added, "The recent change in the FDA's regulatory requirements allowing approval of certain new drugs and biological agents for use against sources of biological warfare based on performance in animal models and other supporting data could materially reduce the timeline for product approval."

To combat the problems associated with emerging antibiotic resistance, SIGA scientists are developing drugs designed to hit a new target - bacterial adhesion organelles.  Specifically, by utilizing novel enzymes required for the transport and/or assembly of the proteins and structures that bacteria require for adhesion or colonization, SIGA is developing new classes of broad-spectrum antibiotics.  This may prove essential in providing prompt treatment to individuals encountering an unknown bacterial pathogen in the air or food supply. Furthermore, while deliberate introduction of any pathogenic agent would be devastating, SIGA believes smallpox is the one that holds the greatest potential for harming the general U.S. population.  At present there is no effective approved drug with which to treat or prevent smallpox infection.To address this serious risk, SIGA scientists have identified two critical smallpox proteinases and are using their expertise in the design of proteinase inhibitors to attempt to develop an effective antiviral drug that could be used to treat smallpox.

Under the agreement, SIGA and TransTech Pharma will collaborate on the discovery, optimization and development of lead compounds to therapeutic agents.The costs of development will be shared. The companies could also share revenues generated from licensing and profits from any commercialized product sales.  Dr. Adnan Mjalli, President and CEO of TransTech Pharma, said, "Anti-infectives represent an important segment of the pharmaceutical market.  With emerging bacterial resistance to current therapies and the threat of biological weapons, the discovery of novel molecules that can meet these challenges is imperative.  We are excited to be working with SIGA and look forward to applying our technology for the rapid translation of biological target information to the discovery of novel small molecule therapeutics.  SIGA brings a rich portfolio of proprietary biological targets to the collaboration as well as their demonstrated expertise in this area.  We are confident in our ability to deliver novel therapeutics and look forward to a very productive relationship with SIGA."

"We are very pleased to be entering into this alliance with TransTech," said Dr. Hruby.  "We believe TransTech's proprietary drug discovery engine, coupled with their focused and intelligent chemistry approach encompassing small molecule reporter capabilities which elucidate the interaction between ligands and their targets, will accelerate the identification and development of anti-infective clinical candidates directed at our targets."

SIGA is identifying and developing novel anti-infective agents based on its pioneering research in the field of bacterial surface proteins, structures used by bacteria to initiate and maintain an infection.  Drug candidates that interfere with surface protein expression are expected to be effective against a wide range of disease-causing bacteria, including antibiotic resistant bacteria, by stripping the organism of its surface defenses.  By comparison, antibiotics available today act by interfering with either the structure or the metabolism of a bacterial cell, affecting its ability to survive and to reproduce. No currently available antibiotic targets the attachment of a bacterium to its target tissue.  Once the surface molecules have been removed, bacteria are readily cleared by the body's innate immune system.

TransTech Pharma, Inc. is a privately held drug discovery company employing approximately 65 people. TransTech's high throughput drug discovery platform seeks to translate the wealth of information from genomics and proteomics into novel small molecules as safe and effective therapeutics.  The technology has already delivered small-molecule-based clinical drug candidates for the treatment of diabetes, cancer, inflammation, Alzheimer's disease and thrombosis. TransTech Pharma has entered into two multi-year multi-target research collaborations with Novo Nordisk and Cephalon both of whom have an equity position in TransTech Pharma. For further company information, visit www.ttpharma.com.

This news release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements, including statements regarding the efficacy and intended utilization of SIGA's technologies under development, are not guarantees of future performance. Actual results may differ materially from the expectations contained in the forward-looking statements.  Factors that may cause such differences include the risk that potential products that appeared promising in early research or clinical trials to SIGA or its collaborators do not demonstrate efficacy or safety in subsequent pre-clinical or clinical trials, and the risk that SIGA or its collaborators will not obtain appropriate or necessary governmental approvals to market products tested in such trials.

More detailed information about SIGA and the factors discussed above is set forth in SIGA's filings with the Securities and Exchange Commission, including SIGA's Annual Report on Form 10-K for the fiscal year ended December 31, 2001, and in other documents that SIGA has filed with the U.S. Securities and Exchange Commission.  Investors and security holders are urged to read those documents free of charge at the Commission's web site at www.sec.com. Those documents may also be obtained free of charge from SIGA.  SIGA does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.  For more information about SIGA, please visit the company's website at www.siga.com.