Tercica and Genentech File Patent Infringement Suit Against Insmed Incorporated

Tercica, Inc. (Nasdaq: TRCA) announced today the filing of a complaint for patent
infringement and a declaratory judgment of patent infringement in the U.S.
District Court for Northern California against Insmed Incorporated of Glen
Allen, Virginia. In the suit, the plaintiffs are seeking an injunction,
damages and declaratory relief.

The suit alleges that Insmed's activities relating to the
commercialization of the Somatokine(R) product for the treatment of Growth
Hormone Insensitivity Syndrome (GHIS) in the United States infringe two issued
U.S. patents exclusively licensed to Tercica. Somatokine(R) is a combination
drug containing insulin-like growth factor-1 (IGF-1) and insulin-like growth
factor binding protein-3 (IGFBP-3).

"As we stated earlier this week in announcing our UK patent infringement
lawsuit against Insmed and Avecia, Tercica's endocrinology patent portfolio is
broader than our lead product candidate, IGF-1. We filed this lawsuit in the
United States to enforce two issued U.S. patents that relate to the
combination of IGF-1 and IGFBP-3," said Stephen N. Rosenfield, Tercica's
Senior Vice President of Legal Affairs and General Counsel.

Tercica licensed rights to develop, manufacture and commercialize rhIGF-1
from Genentech, Inc.

Tercica, Inc. is a biopharmaceutical company focused on the development
and commercialization of rhIGF-1 for the treatment of short stature, diabetes
and other endocrine system disorders. For further information on Tercica and
Primary IGFD, please visit http://www.tercica.com.