EpiCept is pursuing numerous commercial opportunities targeting large, growing and underserved patient populations. A primary therapeutic focus area of the Company is in the development of product candidates with significant competitive advantages to treat cancer. Cancer is the second leading cause of death in the U.S. Half of all men and one third of all women in the U.S. will develop cancer during their lifetimes.

Concurrently, EpiCept is focused on the development of prescription topical pain therapies. According to Wolters Kluwer Health data, the total U.S. market for prescription pain management pharmaceuticals equaled $18.7 billion in 2005, representing approximately a six percent compound annual growth rate since 2001. In 2005, analgesics were the fourth most prescribed class of medications in the U.S., with over 246 million prescriptions written.

Therapeutic targets of EpiCept’s late-stage product candidates include:

Acute Myelod Leukemia (Target of Ceplene™)

• Acute Myeloid Leukemia (AML) is the most common form of acute leukemia in adults.
• There are an estimated 47,000 AML patients in the EU and over 30,000 AML patients in the U.S.
• The majority of AML patients who enter into complete remission, experience a relapse of leukemia, usually within one to two years.
• There are currently no approved relapse-preventative medical therapies available to AML patients.
• Currently, the standard of care for AML patients in remission is no treatment.

Peripheral Neuropathy (Target of EpiCept™ NP-1)

• Peripheral neuropathy, a medical condition caused by damage to the nerves in the peripheral nervous system, affects over 15 million people in the U.S.
• Post-herpetic neuralgia (PHN), a specific peripheral neuropathic pain associated with herpes zoster, or shingles, affects over 100,000 people in the U.S. each year.
• Diabetic peripheral neuropathy is the most common type of neuropathic pain, affecting over 320,000 people in the U.S.

Low Back Pain (Target of LidoPAIN® BP)

• An estimated 80 percent of adults experience one or more episodes of low back pain in their lifetime.
• The one-year prevalence rate is approximately 15 percent to 20 percent, with some estimates as high as 40 percent.
• Low back pain ranks second only to headaches as the most frequent pain people experience.
• Low back pain is the leading reason for visits to neurologists, orthopedists, pain specialists and the second most frequent reason for physician visits overall.
• The economic costs associated with back pain are staggering. Patients in the U.S. suffering from back pain consume in excess of $90 billion annually in health-care expenses with prescription drugs accounting for more than 15 percent ($14.1 billion).

Surgical Pain (Target of LidoPAIN® SP)

• There are over 53 million surgical procedures conducted annually in the U.S.
• Many, if not most, surgical procedures are candidates for LidoPAIN SP.