“In addition to this effort, together with ourfinancial consultants, we are exploring a variety of strategic alternatives toallow EPIX to continue its operations beyond August 2009.” Company Announces Plan to Pursue Strategic AlternativesThe company also announced that it has engaged J.P. The remaining $3,161,000 of Notes that werenot tendered in the exchange offer will remain outstanding pursuant to the termsof the Indenture governing the Notes as amended. “We remain highly focused on improving the financial health of EPIX and believethat the successful completion of our exchange offer where nearly 97% of our$100 million aggregate principal amount of Convertible Senior Notes was tenderedhas meaningfully strengthened our long-term financial position,” said KimDrapkin, chief financial officer. Pursuant to the exchange offer, EPIX retired an aggregate of$96,839,000, or approximately 97%, of its Convertible Senior Notes in exchangefor approximately $17.4 million, approximately 32.8 million shares of commonstock, and approximately 97,000 contingent value rights representing potentialfuture payments upon certain events. The net proceeds from the sale were used tofund the company`s exchange offer for its $100 million aggregate principalamount of 3.00% Convertible Senior Notes due 2024, which was consummated on May7, 2009. In April 2009, the company successfully monetized the U.S., Canadian andAustralian rights for MS-325 (formerly marketed as Vasovist®, gadofosvesettrisodium by Bayer Schering Pharma). (NASDAQ:EPIX) a biopharmaceutical company focused ondiscovering and developing novel therapeutics through the use of its proprietaryand highly efficient in silico drug discovery platform today reported financialresults for the first quarter ended March 31, 2009.

Company Successfully Consummates Exchange Offer of $96.8 Million of Debt forCash and EquityCompany Engages Investment Banks to Assist in Exploring Strategic AlternativesCompany Provides Update on NASDAQ Listing StatusLEXINGTON, Mass.–(Business Wire)–EPIX Pharmaceuticals, Inc. Investors are cautioned that any suchforward-looking statements are not guarantees of future performance and involverisks and uncertainties, many of which are beyond the company’s ability tocontrol, and that actual results may differ materially from those projected inthe forward-looking statements as a result of various factors including the riskfactors disclosed in the company’s Forms 10-K previously filed with the SEC. The company’stechnology services division designs, deploys and manages advanced technologicalsolutions at key government agencies and for mid- to large-sized enterprises.Lattice’s technology products division consists of several core proprietaryplatforms used to develop customized software applications with military gradesecurity in a number of different markets. To access the replay, dial+1(888)286-8010 or +1(617)801-6888; the conference ID is 41548873.

About Lattice IncorporatedLattice Incorporated is a provider of advanced information and communicationstechnology solutions to the government and commercial markets. If you are unable to participate in the call at this time, a replay will beavailable on May 11 at 7:00 p.m ET for seven days. To participate inthe conference call, please dial the following number five to ten minutes priorto the scheduled conference call time: +1(866) 800-8648 The conference ID forthe call is 83148794. Conference CallThe Company will host a conference call at 5:00 p.m ET on May 11, 2009, todiscuss first-quarter 2009 results. Joining Paul Burgess, Lattice`s ChiefExecutive Officer, will be Joe Noto, Chief Financial Officer. Net loss applicable to common shareholders for the 2009 first quarter was$409,358, or $0.02 per fully diluted share, compared to a $140,836 and $0.01,respectively in the first quarter of 2008.

Included in otherexpense for the first quarter of 2009 was $172,000 non-cash derivative expensewhich compared to derivative income of $179,000 in the comparable quarter of2008. Reconciliation of Operating Loss reported to “Adjusted” Operating Income31-Mar-09 31-Mar-08Operating Loss – reported$ (317,331)$ (458,390) Add-back non-cash items:Depreciation & Amortization300,085375,733 Share-based compensation 125,6319,833 “Adjusted” Operating Income108,385(72,824 )Other expense in the first quarter of 2009 totaled $254,500, compared to otherincome of $128,394 recorded in the first quarter of 2008. Below is a reconciliation of “Adjusted” operating income toreported operating loss. The Company uses “Adjusted” operatingincome, a non-GAAP measure, as an internal gauge on the Company`s operatingperformance. The Company posted an “Adjusted” operating income of $108,000 compared to a lossfor the 2008 first quarter of $73,000.

Selling, general andadministrative expenses in the 2009 first quarter were $1.1 million,approximately even with SG&A recorded for the first quarter of 2008 Amortizationexpense was down 19.8% to $299,248 compared to $372,057 recorded in thecorresponding period of 2008, as some of the Company`s intangibles have beenfully amortized. Operating expenses for the first quarter of 2009 totaled $1.6 million,approximately even with the comparable period of 2008. The year-over-year increase ingross profit was primarily due to a higher percentage of overall revenuesattributable to higher-margin technology products,an increase in governmentservices margins due to the rate increase on the Company`s cost plus contracts,partially offset by increased use of subcontractors in supporting the Governmentservice revenues. Gross profit in the 2009 first quarter wasapproximately $1.3 million compared to $1.1 million in the comparable period of2008. As a percent of revenues, gross profit was 32.9% in the first quarter of2009, up from 31.6% in the first quarter of 2008. Cost of revenues increased to approximately $2.6 million from approximately $2.5million in the same period of 2008. The year-over-yearincrease in quarterly total revenues was attributable to an increase in rates onthe Company`s cost-plus contracts in its Government services unit and highersales in the Company`s technology product segment.