*Note* MS Drug Article

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Chromos Updates On Progress with Development of CHR-1103 For

Treatment of MS

For Immediate Release: August 15, 2006

Burnaby, British Columbia, Canada - Chromos Molecular Systems Inc. (TSX:

CHR) has taken several significant steps in the development of its lead

product candidate, CHR-1103. A humanized monoclonal antibody, CHR-1103

is being developed for the acute treatment of relapsing forms of

multiple sclerosis (MS). Its unique mechanism of action has the

potential to reduce the severity of a relapse in patients with MS and

also stem the residual neurological damage that often accompanies

relapse and leads to progression of the disease.

Chromos recently completed its first meeting with officials from the

U.S. Food and Drug Administration (FDA). The two parties discussed

Chromos' clinical approach, proposed preclinical safety evaluation

program and manufacture of CHR-1103. Chromos is now moving forward with

preclinical safety evaluation studies in preparation for an

Investigational New Drug (IND) application in Q3 2007.

Using its proprietary ACE System, Chromos engineered a stable clonal

cell line expressing its product, CHR-1103 and transferred it to AppTec

for process development, scale up and manufacture. The ACE System

demonstrated the ability to perform well in large-scale manufacturing,

validating the use of the platform for clinical and commercial scale

manufacturing of biopharmaceuticals. The Company is now preparing to

begin its preclinical safety evaluation studies with River

Laboratories.

Chromos has engaged two leading MS clinicians to act as clinical

consultants for its CHR-1103 program. Lily Jung, M.D. is the Medical

Director of the Seattle Neuroscience Institute at Swedish Medical Centre

in Seattle, WA, and a clinical associate professor in Neurology at the

University of Washington Medical School. Mariko Kita, M.D. is a

clinical investigator and Director of the Virginia Mason Multiple

Sclerosis Center in Seattle, WA. Drs. Jung and Kita will advise and

assist with the clinical development of CHR-1103 as it enters clinical

trials.

About Chromos

Chromos is a biopharmaceutical company with two drug development

programs focused on inflammatory diseases and thrombotic disorders. The

Company's lead program, CHR-1103, is a humanized monoclonal antibody

being developed as a treatment with an initial focus on the treatment of

acute relapses associated with multiple sclerosis (MS). Chromos

generates revenue from its proprietary ACE System technology to engineer

production quality cell lines to manufacture biopharmaceutical products

including monoclonal antibodies. For more information visit our website

at www.chromos.com <http://www.chromos.com/>.

Risks and Uncertainties

Certain of the statements contained in this press release are

forward-looking statements which involve known and unknown risks,

uncertainties and other factors which may cause the actual results,

performance or achievements of Chromos (the " Company " ), or industry

results, to be materially different from any future results, performance

or achievements expressed or implied by such forward-looking statements.

To the extent possible, management implements strategies to reduce or

mitigate the risks and uncertainties associated with the Company's

operations. Operating risks include (i) the continued availability of

capital to finance the Company's activities; (ii) the Company's limited

cash position, (iii) the ability to successfully obtain proof of the

effectiveness of the Company's technology (iv) the ability to complete

and maintain corporate alliances relating to the development and

commercialization of the Company's technology; (v) the ability to obtain

and enforce patent and other intellectual property protection for the

Company's technology; (vi) market acceptance of the Company's

technology; (vii) the competitive environment and impact of

technological change; (viii) the Company's ability to attract and retain

employees to carry out its business plans and (ix) the timely

development and commercialization of any technology or products that are

contingent on the completion and maintenance of corporate alliances with

third parties. Further details on Chromos' operating risks can be found

in the Company's Quarterly and Annual Reports to Shareholders.

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FOR FURTHER INFORMATION:

ph Zendegui, Ph.D.

Vice President, Corporate Development

Tel:

Email:jzendegui@...

Website: www.chromos.com <http://www.chromos.com/>

http://www.chromos.com/home_frames.htm