NPS Pharmaceuticals Completes $100 Million Series B Note Offering Backed by Sensipar(R) Royalties



    
    Proceeds to Be Used to Retire 3% Convertible Debt Notes Due June 2008
    

    PARSIPPANY, N.J., Aug. 7 /CNW/ -- NPS Pharmaceuticals, Inc. (Nasdaq:
NPSP) announced today that it has closed a private placement of $100 million
of Series B notes secured by revenues paid to a subsidiary of NPS from sales
of Sensipar(R), a drug licensed to and sold by Amgen Inc. for the treatment of
secondary hyperparathyroidism.  Net proceeds of approximately $96 million
after transaction costs are expected to be used to retire approximately half
of NPS's 3% convertible notes due June 2008.
    Similar to the current Series A Sensipar royalty-backed notes, the Series
B notes are non-recourse to NPS.  The new notes bear an interest rate of 15.5%
and will be repaid only after the Series A Sensipar royalty-backed notes are
paid in full.  The Series B notes mature March 2017 but are expected to be
repaid by December 2012 after which the Sensipar royalties will return to NPS.
    NPS chief financial officer Gerard Michel stated:  "This transaction, in
combination with the previously announced Drug Royalty and convertible debt
transactions, allows us to pursue the retirement of all of our outstanding 3%
convertible notes without significant dilution to our existing shareholders.
Additionally, as these notes are non-recourse debt, they represent low-risk
obligations of NPS."
    The notes have not been and will not be registered under the Securities
Act of 1933 and may not be offered or sold in the United States absent an
applicable exemption from the registration requirements of the Act.


    
                            About NPS Pharmaceuticals
    
    NPS discovers and develops small molecules and recombinant proteins as
drugs, primarily for the treatment of metabolic, bone and mineral, and central
nervous system disorders.  The company has drug candidates in various stages
of clinical development.  Additional information is available on the company's
website, http://www.npsp.com
    
     Cautionary Statement For The Purpose Of The "Safe Harbor" Provisions
           Of The Private Securities Litigation Reform Act of 1995
    
    Note: Statements made in this press release, which are not historical in
nature, constitute forward-looking statements for purposes of the safe harbor
provided by the Private Securities Litigation Reform Act of 1995. Such
statements include those regarding our subsidiary's Series B Secured Notes.
These statements are based on management's current expectations and beliefs
and are subject to a number of factors and uncertainties that could cause
actual results to differ materially from those described in the forward-
looking statements.  Such risks and uncertainties include: Our royalty revenue
from Amgen may not be sufficient to repay our Sensipar(R) secured debt
obligations in accordance with our expectations or at all.  All information in
this press release is as of August 7, 2007, and we undertake no duty to update
this information. A more complete description of these risks can be found in
our filings with the Securities and Exchange Commission, including our Current
Report on Form 10-Q for the quarter-ended June 30, 2007 and our Annual Report
on Form 10-K for the year ended December 31, 2006.




For further information:

For further information: Gail Brophy of NPS Pharmaceuticals, Inc., 
+1-973-658-8504 Web Site: http://www.npsp.com

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NPS PHARMACEUTICALS, INC.

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