Ewing's Sarcoma Patient Treated with New Drug / ARIAD REPORTS TUMOR REGRESSION WITH AP23573 AS A SINGLE AGENT IN PATIENTS WITH RELAPSED AND/OR REFRACTORY CANCER

ARIAD REPORTS TUMOR REGRESSION WITH AP23573 AS A SINGLE AGENT

IN PATIENTS WITH RELAPSED AND/OR REFRACTORY CANCER

Updated Phase 1 Clinical Results on Novel mTOR Inhibitor Presented at

International Cancer Symposium

Cambridge, MA, September 30, 2004 – ARIAD Pharmaceuticals, Inc. (Nasdaq:

ARIA) today

announced, for the first time, updated results of two Phase 1 clinical

trials of its novel mTOR

inhibitor, AP23573 as a single agent, showing documented tumor

regression in patients with

advanced cancers – most of whom had progressive disease upon entering

the trial and

virtually all of whom had failed alternative treatments. These clinical

results are being

presented today at the 2004 EORTC-NCI-AACR Symposium on Molecular

Targets and

Cancer Therapeutics in Geneva, Switzerland.

Combined Trial Results: Anti-tumor Responses

Of 49 evaluable patients in the two trials, tumor regression was

demonstrated in 9 patients (4

“partial responses” by RECIST with at least 30% reduction in tumor size

and 5 “minor

responses” with 15% to 29% reduction). In an additional 15 patients,

disease stabilization

was achieved. Overall, 49% (24 of 49) of the patients in the two trials

had documented antitumor

responses (including partial and minor responses and stable disease),

with a median

response of 5 months in those demonstrating anti-tumor responses,

extending to greater than

18 months – the longest treatment to date.

Anti-tumor responses were demonstrated in 9 different refractory and/or

relapsed cancers,

including all evaluable patients with sarcoma (5 of 5), kidney cancer (7

of 7) and lymphoma (1

of 1), as well as 2 of 3 patients with non-small cell lung (NSCL) cancer.

“We are extremely encouraged by the number of patients with relapsed

and/or refractory

cancer who demonstrated tumor regression with AP23573 in Phase 1

clinical trials, as well as

the breadth of tumors that are responding to our novel mTOR inhibitor,”

said Harvey J. Berger,

M.D., chairman and chief executive officer of ARIAD. “As a clinician, I

was particularly

struck by the results in one patient with a Ewing’s sarcoma who had

received nine prior

anticancer regimens. After four cycles of AP23573, CT scans showed a 62%

reduction in the

size of the mass; this patient continues on study. Phase 2 studies of

AP23573 are ongoing in

patients with hematologic cancers and solid tumors.”

Daily Dosing Trial Results

In the 27 evaluable patients in the daily dosing trial – the dosing

regimen being used in

current Phase 2 clinical trials – AP23573 produced tumor regression in 7

patients:

• Partial response – Sarcoma, lymphoma, and NSCL cancer (1 each)

• Minor response – Sarcoma, NSCL, kidney, and thyroid cancers (1 each).

An additional 9 patients in this trial had stabilization of their

disease (overall 59% with

anti-tumor response).

Weekly Dosing Trial Results

In the 22 evaluable patients in the weekly dosing trial, AP23573 also

produced tumor

regression in 2 patients, both with particularly difficult-to-treat

cancers, even when the drug

was administered only once each week:

• Partial response – Bladder cancer (1) (unconfirmed, repeat scans pending)

• Minor response – Mesothelioma, a form of chest-cavity cancer (1).

An additional 6 patients in this trial had stabilization of their

disease (overall 36% with antitumor

response).

Additional Combined Trial Results

The daily dosing trial is ongoing at the Institute for Drug Development,

Cancer Therapy and

Research Center, San Antonio (M. Mita, M.D. and A. Tolcher, M.D.), and

the weekly dosing

trial is ongoing at the University of Chicago Cancer Center (A. Desai,

M.D. and M. Ratain,

M.D.).

AP23573 has been well tolerated by patients in both trials, with

generally mild or moderate,

readily reversible adverse events. The dose-limiting toxicity was severe

oral mucositis, an

inflammatory irritation of the mucous membranes of the mouth and a

common finding in

cancer patients on various types of treatments.

Pharmacodynamic assays on patient samples demonstrated a good

correlation of blood levels

of AP23573 with inhibition of AP23573’s molecular target, the protein

mTOR. Greater than

90% inhibition was observed within 1 hour after dosing in all patients

in both trials. With

daily dosing of AP23573, there was sustained inhibition of mTOR activity

for up to 10 days in

the majority of patients studied.

The pharmacokinetic (blood-clearance) profile of AP23573 was found to be

highly predictable

and reproducible, with a median half-life of 49 hours for all patients

with complete data in the

two trials. In contrast to other mTOR inhibitors in clinical trials,

AP23573 was stable in vivo

and is not a pro-drug.

About AP23573

The small-molecule drug, AP23573, starves cancer cells and shrinks

tumors by inhibiting the

critical cell-signaling protein, mTOR, which regulates the response of

tumor cells to nutrients

and growth factors, and controls tumor blood supply and angiogenesis

through effects on

Vascular Endothelial Growth Factor (VEGF).

About the Company

ARIAD is engaged in the discovery and development of breakthrough

medicines to treat cancer

by regulating cell signaling with small molecules. The Company is

developing a comprehensive

approach to patients with cancer that addresses the greatest medical

need – aggressive and

advanced-stage cancers for which current treatments are inadequate.

ARIAD also has an

exclusive license to pioneering technology and patents related to

certain NF-κB treatment

methods, and the discovery and development of drugs to regulate NF-κB

cell-signaling activity,

which may be useful in treating certain diseases. Additional information

about ARIAD can be

found on the web at http://www.ariad.com.

Some of the matters discussed herein are “forward-looking statements”

within the meaning of the

Private Securities Litigation Reform Act of 1995. Such statements are

identified by the use of words

such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”

“believe,” and other words and

terms of similar meaning in connection with any discussion of future

operating or financial

performance. Such statements are based on management’s current

expectations and are subject to certain

factors, risks and uncertainties that may cause actual results, outcome

of events, timing and

performance to differ materially from those expressed or implied by such

forward-looking statements.

These risks include, but are not limited to, risks and uncertainties

regarding the Company’s ability to

accurately estimate the actual research and development expenses and

other costs associated with the

preclinical and clinical development of our product candidates, the

adequacy of our capital resources

and the availability of additional funding, risks and uncertainties

regarding the Company’s ability

to successfully conduct preclinical and clinical studies of its product

candidates, risks and uncertainties

that clinical trial results, such as those noted in this press release,

at any phase of development may

be adverse or may not be predictive of future result or lead to

regulatory approval of any of the

Company’s product candidates, and risks and uncertainties relating to

regulatory oversight,

intellectual property claims, the timing, scope, cost and outcome of

legal proceedings, future capital

needs, key employees, dependence on the Company’s collaborators and

manufacturers, markets,

economic conditions, products, services, prices, reimbursement rates,

competition and other risks

detailed in the Company’s public filings with the Securities and

Exchange Commission, including

ARIAD’s Annual Report on Form 10-K for the fiscal year ended December

31, 2003. The information

contained in this document is believed to be current as of the date of

original issue. The Company does

not intend to update any of the forward-looking statements after the

date of this document to conform

these statements to actual results or to changes in the Company’s

expectations, except as required by

law.

###

CONTACT: Tom Pearson

(610) 407-9260

Kelly Lindenboom

(617) 621-2345

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