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Rigel Reports Second Quarter 2001 Financial Results

South San Francisco, CA, - August 08, 2001

Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today reported its financial results for the second quarter and six months ended June 30, 2001. Revenues from research collaborations were $3.1 million in both the 2001 and 2000 second quarters. Total operating expenses were $10.7 million in the 2001 second quarter, compared to $7.6 million in the comparable 2000 period, primarily reflecting increased investment in research and development.

For the 2001 second quarter, Rigel reported a net loss of $7.3 million, or $0.20 per common share, compared to a net loss of $4.4 million, or $1.00 per common share, in the 2000 second quarter. At June 30, 2001, Rigel had cash, cash equivalents and short-term investments of $41.3 million, compared with $53.0 million at December 31, 2000.

For the six months ended June 30, 2001, Rigel recorded revenues from research collaborations of $6.3 million, compared with $6.8 million in the first six months of 2000. The company’s net loss in the first six months of 2001 was $11.5 million, or $0.31 per share, compared with a net loss of $12.3 million, or $0.43 per share on a pro forma basis, in the first six months of 2000. The pro forma net loss per share in the first six months of 2000 excludes a $10.0 million non-cash, non-recurring accounting charge recorded as a deemed dividend to Series E preferred stockholders, and assumes the conversion of outstanding shares of convertible preferred stock to common stock. The non-cash accounting entry reflects the difference between the price of our Series E preferred stock issued in February 2000 and the assumed market price of Rigel common stock in February 2000.

Rigel uses post-genomics combinatorial biology technology to discover novel drug targets. Post-genomics combinatorial biology technology is designed to identify molecules that play an important role in regulating a human cell’s response to disease by testing a very large number of proteins in a very large number of cells to determine which proteins will change the cell’s response to the disease. Rigel currently has programs in asthma/allergy, autoimmunity, transplant rejection, rheumatoid arthritis, inflammatory bowel disease, chronic bronchitis, cancerous tumor growth and hepatitis C. In addition to its proprietary programs, Rigel has research and product development collaborations with Pfizer Inc., Cell Genesys, Inc., Janssen Pharmaceutica N.V. and Novartis Pharma A.G. Rigel is based in South San Francisco, California.

Statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Rigel cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements due to the risks and factors identified in Rigel's Annual Report on Form 10-K for the year ended December 31, 2000 and other filings made with the Securities and Exchange Commission from time to time. The information in this press release is current as of its release date. Rigel does not intend to update the forward-looking information contained in this press release.