RESEARCH TRIANGLE PARK, N.C., U.S.A. (February 17, 2004)

  Qualyst, Inc., a privately held biotechnology company, announced today the closing of its Series A Preferred Stock Offering. Burton Advisers Ltd. (of London) acted as the exclusive financial advisor and placement agent in the Offering. Financial details were not disclosed.

  Scott Neuville, President and CEO, stated,

 “This placement of Preferred Stock places Qualyst in a strong financial position. We are delighted that our investors recognize the value of Qualyst’s proprietary technologies for drug research and development – and the investors’ enthusiasm has led us to close an oversubscribed Series A round."

“The proceeds of this Offering will be used to support operations and our growing customer base,” said Mr. Neuville. He added, “Qualyst’s compelling technologies have helped us secure relationships with several of the world’s top-tier pharmaceutical companies. We look forward to the continued expansion of our client base across the industry.”

About Qualyst, Inc.
Qualyst commercializes novel and proprietary ADMET products for drug discovery and development. Qualystís products allow pharmaceutical and biotechnology researchers to make faster, better decisions regarding drug candidate compounds, saving valuable time and research dollars in the process. Qualyst, Inc. was founded on discoveries from breakthrough research at the University of North Carolina at Chapel Hill in 2001. For additional information, please refer to the company's web site at www.Qualyst.com or call 919-313-6500.

CONTACT:

Ian J. Mehr
Vice President, Business Development
Qualyst, Inc.
919-313-6507
info[AT]qualyst[DOT]com
www.Qualyst.com