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Omeros Raises More Than $63 Million in Financing

Seattle, WA - February 12, 2007 - Omeros today announced that it has raised in excess of $63 million in an oversubscribed Series E equity financing. New investors, including Aravis Ventures, ARCH Venture Partners, subsidiaries of American Financial Group, Grosvenor Funds, Novartis Venture Fund, Southern Cross Capital, Stanley Medical Research Institute, Trevi Health Ventures and WRF Capital, participated alongside existing shareholders. The round was completed on terms that were consistent with those of Omeros' previous financings and at a price that recognized the company's increasing value.

"This is a significant achievement for Omeros," said Gregory A. Demopulos, M.D., Chairman and CEO of Omeros. "The quality and depth of the firms involved, as well as the straightforward terms and conditions under which they invested, provide further validation of our technologies, commercial potential and strategic course."

"Omeros is an exceptional biotech company that offers near-term clinical products in large markets and a robust pipeline - executed in an extremely capital efficient manner," said Robert Nelsen, Co-founder and Managing Director of ARCH Venture Partners.

"The company has a strong likelihood of achieving success within a reasonable investment horizon," added C. Bowdoin Train, Managing Partner of The Grosvenor Funds. "We are pleased to have the opportunity to work with Dr. Demopulos, as he and his experienced team are implementing a strategy to combine strong science with a sound business proposition."

Omeros expects to use the proceeds to complete the Phase 3 program for its arthroscopic drug product, OMS103HP, advance additional product candidates into the clinic in 2007 and 2008, and further develop its research pipeline.

"Omeros' leadership is strong and we are enthused about the prospects for the company's Phase 3 clinical program," stated Andrew Fink, Managing Director of Trevi Health Ventures. "We are also confident in the carefully planned intellectual property strategies that the company has undertaken for each of its verticals." As part of the financing, Jean-Philippe Tripet, Managing Partner and Founder of Aravis Ventures of Switzerland, has joined Omeros' Board of Directors. Mr. Tripet co-founded and led the Lombard Odier Immunology Fund, which became one of the most successful healthcare funds in Europe, achieving CHF 3.0 billion in assets. "Omeros combines the key success factors for biotech: a strong management team, a pipeline of innovative products and a solid financial basis," said Mr. Tripet. "With the closing of Series E, Omeros now reaches a very exciting new phase of growth."

Omeros was assisted in raising some of the funds by Broadmark Capital and Chicago Investment Group.

Omeros Corporation is a biopharmaceutical company advancing a pipeline of product candidates for use in orthopedics, rheumatology, urology, cardiovascular medicine, ophthalmology, pain management and neurological disorders. Based on a systems biology approach, Omeros' patented lead product candidates are designed to act on multiple molecular targets at the site of delivery to improve therapeutic benefit while minimizing the risk of side effects. Omeros' pipeline includes drug candidates that cross the blood-brain barrier, and are being developed from Omeros' platform technologies for the discovery of therapeutics for neurodegenerative diseases and behavioral disorders. Omeros is located at 1420 Fifth Avenue, Suite 2600, Seattle, WA 98101, Phone: 206.676.5000, Fax: 206.264.7856,

Aravis Ventures is an investment organization providing venture capital to highly promising seed and early-stage projects in biotechnology. Aravis provides its companies a unique international network that combines decades of experience in science, operations and venture financing.

ARCH Venture Partners is a premier provider of seed and early-stage venture capital for technology firms, with a special expertise in co-founding and building technology firms from start-up. It invests primarily in companies co-founded with leading scientists and entrepreneurs, concentrating on bringing to market innovations in information technology, life sciences, and physical sciences. ARCH enjoys special recognition as a leader in the successful commercialization of technologies developed at academic research institutions and national laboratories. ARCH currently manages six funds totaling over $1 billion and has invested in the earliest venture capital rounds for more than 110 companies.

American Financial Group, through the operations of Great American Insurance Group, is engaged primarily in property and casualty insurance, focusing on specialized commercial products for businesses, and in the sale of traditional fixed indexed and variable annuities and a variety of supplemental insurance products.

The Grosvenor Funds is an early and expansion-stage venture capital firm. Founded in 1994, Grosvenor is currently investing its fourth fund. Grosvenor has invested in over 70 private companies since 1994, including Biomarin Pharmaceutical, Inc. (NASDAQ- BMRN), Corvis Corporation and Mobile 365, recently acquired by Sybase (NYSE- SY) for $420 million, and favors companies with a sustainable competitive advantage to address large, expanding markets. Headquartered in Washington, DC, the firm also has an office in Greenwich, CT.

The Novartis Venture Fund is based on the conviction that economic growth and the creation of new jobs can be achieved in the long run only if new entrepreneurial initiatives develop and promising ideas become business reality. With venture capital of CHF 150 million and USD 100 million, the Fund supports new business projects that show exemplary entrepreneurial and innovative spirit in future-oriented areas, especially in the field of Health Sciences. For information on its portfolio of 75 life science companies, see where most of the companies have a brief profile.

Southern Cross Capital - advisor to the Brenthurst Funds, which represent the private investment interests of the Oppenheimer Family of South Africa, the founding shareholders of Anglo American Plc. The Oppenheimer Family manages and, at 40% ownership, remains the largest single individual shareholder of global diamond giant De Beers.

The Stanley Medical Research Institute (SMRI) is a nonprofit organization that supports research on the causes and treatment of schizophrenia and bipolar disorder (manic-depressive illness), both through work carried out in its own laboratories and through support of researchers worldwide who are working on these diseases. SMRI has provided over $200 million in funding since 1989. Schizophrenia and bipolar disorder are the major psychiatric disorders in the United States, affecting more than 4 million people.

Trevi Health Ventures is a healthcare private equity firm managed by a team of experienced investment and operating professionals. Based in New York and London, the firm invests in development- and growth-stage companies in medical devices, biopharmaceuticals and healthcare services.

WRF Capital is the venture investment arm of the Washington Research Foundation, an independent organization founded in 1981 to support research and scholarship at Washington state research institutions. A leading early-stage investor, WRF Capital partners with entrepreneurs, local universities, and research institutions to develop promising technology companies. Examples of WRF Capital's life science companies include Alder Biopharmaceuticals, Amnis, Corus Pharma, Ekos, HaloSource, Hyperion Therapeutics, Ikaria, Lumera, Targeted Growth, Therus, Teranode, Uptake Medical, and VLST Corp. For more information, visit