Coley Pharmaceutical Group sets price for initial public offering

Date: 10/08/2005

Wellesley, MA, USA – Coley Pharmaceutical Group, Inc. today announced the initial public offering of 6,000,000 shares of its common stock at a price of $16.00 per share, before underwriting discounts and commissions. Shares of Coley’s common stock will be traded on the Nasdaq National Market beginning August 10, 2005 under the trading symbol “COLY”. Coley has granted the underwriters of the initial public offering a 30-day over-allotment option to purchase an additional 900,000 shares.

In a separate private placement, an additional 625,000 shares will be purchased by Coley’s collaboration partner, Pfizer, Inc., at $16.00 per share, under the terms of a worldwide license agreement announced with Coley in March 2005.

Merrill Lynch & Co. was the book runner for the offering with J.P. Morgan acting as co-lead. Lazard and Leerink Swann are acting as co-managers for the offering.

Proceeds from the offering are expected to be approximately $97,594,000 or $110,986,000 if the underwriters exercise their over-allotment option in full, after deducting the underwriting discounts and commissions and the estimated offering expenses.