February 23, 2004

Neurochem reports results for its quarter and transitional financial year ended December 31, 2003.
Neurochem will host a conference call today at 4:30 P.M. EST.

- Neurochem, Inc. (NASDAQ: NRMX, TSX: NRM) - today announced results for its quarter and six-month transitional financial year ended December 31, 2003. As previously announced, Neurochem changed the date of its fiscal year-end from June 30 to December 31. This step was taken in consideration of the Company approaching commercialization and to align its fiscal period with the fiscal year of most companies in its industry. All amounts are in Canadian dollars unless specified otherwise. Neurochem will host a conference call today at 4:30 P.M. EST. The telephone number to access the conference call is (888) 766-8353. A replay of the call will be available until March 1, 2004. The telephone number to access the replay of the call is (800) 558-5253 code: 21186123.

Highlights of the transitional financial period included the successful completion of an initial public offering in the United States and a share offering in Canada totaling 5.75 million common shares for gross proceeds of $85.0 million (U.S. $62.5 million). Neurochem was subsequently added to the NASDAQ Biotechnology Index (NBI) and to the S&P/TSX Composite Index. The Company released continued positive results for Alzhemed(TM) in an open-label extension Phase II study after both nine and twelve months of treatment in patients with Alzheimer's Disease. Neurochem further strengthened its Board of Directors and was pleased to welcome Dr. Frederick H. Lowy, Rector and Vice- Chancellor of Concordia University and Mr. Graeme K. Rutledge, consultant. For the six-month period ended December 31, 2003, the Company reported a net loss of $16,773,000 ($0.63 per share), compared to $10,539,000 ($0.52 per share) for the same period the previous year. For the quarter ended December 31, 2003, Neurochem reported a net loss of $9,986,000 ($0.34 per share), compared to $6,577,000 ($0.31 per share) for the same period the previous year.

"Neurochem is making important strides to becoming a leader in the field of neurology," said Dr. Francesco Bellini, Neurochem's Chairman and CEO. "The very encouraging results of our clinical trials are supported by a growing management and scientific team, promising and complementary development programs targeting the treatment of Alzheimer's Disease, and by strong financial resources as our product candidates advance toward the marketplace."

To date, in fiscal 2004, Neurochem announced:

• the formation of a strategic alliance with the National Research Council of Canada's Institute for Biological Sciences and an in- licensing agreement with Praecis Pharmaceuticals Incorporated for the development of a vaccine to prevent and treat Alzheimer's Disease.
  
  

• a third unanimous recommendation by Neurochem's independent Data Safety Monitoring Board (DSMB) to continue its Phase II/III clinical trial for the orphan drug candidate, Fibrillex(TM). This product candidate is indicated for the treatment of Amyloid (AA) Amyloidosis, a fatal disorder associated with chronic inflammatory and infectious diseases.
  
  

• a Fast Track Product designation for Fibrillex(TM) by the U.S. FDA. The Phase II/III clinical trial is scheduled for completion in January 2005.
  
  

• continued expansion of its management team with the addition of Ms. Christine Lennon as Vice President, Business Development and Ms. Judith Paquin as Vice President, Human Resources.
  
  

Financial Results Highlights

The following information should be read in conjunction with the selected financial information contained herein.

For the quarter ended December 31, 2003, net loss amounted to $9,986,000 ($0.34 per share) compared to $6,577,000 ($0.31 per share) for the same period last year. For the six month-period ended December 31, 2003, net loss amounted to $16,773,000 ($0.63 per share), compared to $10,539,000 ($0.52 per share) for the same period last year.

Research and development (R&D) expenses, before research tax credits and grants, amounted to $4,682,000 for the current quarter, compared to $5,487,000 for the same period last year. For the six month-period ended December 31, 2003, R&D expenses amounted to $8,522,000, compared to $9,450,000 for the corresponding period last year. These decreases are due to a reduction in clinical trial expenses related to Alzhemed(TM), following the completion of the Phase II clinical trial in June 2003. For the six month-period ended December 31, 2003, research and development expenses were incurred to support the on-going Fibrillex(TM) Phase II/III clinical trials and open-label extension study, the Alzhemed(TM) open-label Phase II extension study and advancement towards its Phase III clinical trials, the Cerebril(TM) Phase II clinical trial as well as on-going research programs. As at December 31, 2003, the Company had 171 patients in its various clinical trials.

Research tax credits amounted to $599,000 this quarter compared to $210,000 for last year's quarter. For the six-month period ended December 31, 2003, research tax credits amounted to $914,000, compared to $423,000 for the corresponding period last year. Research tax credits represent refundable tax credits earned under the Quebec Scientific Research and Experimental Development program. These increases are due to higher eligible expenses during the current period as well as prior years' credit claims resolved during the current period.

Research and other grants amounted to $107,000 this quarter, compared to $577,000 for last year's quarter. For the six-month period ended December 31, 2003, research and other grants amounted to $208,000, compared to $1,150,000 for the corresponding period last year. In the prior year, research grants refer principally to investment contributions under the Technology Partnerships Canada ("TPC") Program received by the Company for the development of Alzhemed(TM) ($919,000) as well as payments received from the FDA for the development of Fibrillex(TM) ($231,000) whereas the current six- month period consists of only grants received from the FDA for Fibrillex(TM).

General and administrative (G&A) expenses for the quarter totaled $4,436,000 compared to $1,752,000 for the same quarter last year. For the six- month period ended December 31, 2003, these expenses amounted to $7,454,000, compared to $2,469,000 for the prior year. These increases are due to expansion of the corporate infrastructure necessary to support the growth and the increase in the overall activity level of the Company in the areas of accounting, legal, administration and senior management; legal expenses incurred in relation with an on-going litigation and other corporate-related matters; and increased awareness and educational activities related to AA Amyloidosis, Fibrillex(TM)'s target indication and set up of a marketing team.

Depreciation and amortization for the current quarter increased to $323,000 ($646,000 for the six months) from $306,000 for the comparable quarter last year ($556,000 for the six-months). These increases reflect the depreciation and amortization associated with the acquisition of additional property and equipment, as well as additions to patent costs, during the past year.

Interest income amounted to $393,000 this quarter ($520,000 for the six- month period) compared to $229,000 for the comparable quarter last year ($482,000 for the six-month period last year). These increases result from higher average cash balances in the current period, compared to the same period last year offset by a larger portion of the investment portfolio denominated in US dollars, earning lower yields.

Interest expense and foreign exchange losses amounted to $1,644,000 for the current quarter, compared to $48,000 for the same quarter last year. For the six-month period ended December 31, 2003, interest expense and foreign exchange losses amounted to $1,793,000 compared to $119,000 for the corresponding period last year. These increases are attributable to foreign exchange losses recognized on the US dollar denominated investments held by the Company, due to the strengthening of the Canadian dollar versus the US dollar during the period.

Liquidity and Capital Resources

As at December 31, 2003, the Company had cash, cash equivalents and marketable securities of $77,594,000, compared to $16,334,000 at June 30, 2003. The increase is due to proceeds received from the issue of additional share capital during the period, net of funds used in operations and in investing activities.

In September 2003, the Company completed the initial public offering of its common shares in the United States and a new issue of shares in Canada. The Company issued 5.75 million common shares at a price of US$10.87 per share. Total proceeds from the offering were $84,956,000 (US$62,502,500) and the issue costs totaled $6,813,000. Net proceeds from the offering are being used to fund clinical trials of the Company's lead product candidates, other research and development programs, capital expenditures, working capital and general corporate purposes.

As at January 31, 2004, the Company had 29,860,565 common shares outstanding, 2,213,088 options granted under the stock option plan and 4,000,000 warrants.

Neurochem Inc.
Selected Financial ($'000CDN)(1)

Three-month period ended December 31

Six-month period ended December 31

Year ended June 30

Consolidated statements of operations

2003 unaudited

2002 unaudited

2003 audited

2002 unaudited

2003 audited

Expenses:

Research & development

4 682

5 487

8 522

9 450

18 782

Research tax credits & grants

(706)

(787)

(1 122)

(1 573)

(3 305)

General & administrative

4 436

1 752

7 454

2 469

7 184

Depreciation and amortization

323

306

646

556

1 197

(8 735)

(6 758)

(15 500)

(10 902)

(23 858)

Interest income

393

229

520

482

800

Interest expense and foreign exchange losses

(1 644)

(48)

(1 793)

(119)

(44)

Gain on disposal of intellectual property

-

-

-

-

3 484

Net loss

(9 986)

(6 577)

(16 773)

(10 539)

(19 618)

Net loss per share:

Basic

(0.34)

(0.31)

(0.63)

(0.52)

(0.90)

Diluted

(0.34)

(0.31)

(0.63)

(0.52)

(0.90)

Weighted average number of common shares outstanding:
Basic

29593621

21361469

26813836

20353835

21770541

Diluted

34281376

24120291

31290776

22591719

24628551

Consolidated balance sheets

At Dec. 31 2003 audited

At Dec. 31 2002 unaudited

At June 30 2003 audited

Cash, cash equivalents and marketable securities

77 594

21 470

16 334

Other current assets

4 503

2 004

3 513

Total current assets

82 097

23 474

19 847

Long-term investment

4 421

-

4 421

Capital assets

7 481

6 594

6 656

Other long term assets

226

226

236

Total assets

94 225

30 294

31 160

Current liabilities

6 244

5 350

5 824

Obligations under capital leases

416

842

633

Sahreholders' equity

87 565

24 102

24 703

Total liabilities and shareholders' equity

94 225

30 294

31 160

(1) Condensed from the Company's consolidated financial statements.

About Neurochem

Neurochem is focused on the development and commercialization of innovative therapeutics for neurological disorders. The Company's staged pipeline of proprietary, disease-modifying, oral products addresses critical unmet medical needs. Fibrillex™, designated an orphan drug, is in a Phase II/III clinical trial for AA amyloidosis. Alzhemed™ has completed a Phase II clinical trial for the treatment of Alzheimer's Disease. Cerebril™ is in a Phase II trial for the prevention of hemorrhagic stroke caused by cerebral amyloid angiopathy. For additional information on Neurochem, please visit our website at: (www.neurochem.com).

Certain statements contained in this news release, other than statements of fact that are independently verifiable at the date hereof, may constitute forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond Neurochem's control. Such risks include but are not limited to: the impact of general economic conditions, general conditions in the pharmaceutical industry, changes in the regulatory environment in the jurisdictions in which Neurochem does business, stock market volatility, fluctuations in costs, and changes to the competitive environment due to consolidation as well as other risks included in public filings of Neurochem. Consequently, actual future results may differ materially from the anticipated results expressed in the forward-looking statements. The reader should not place undue reliance on the forward-looking statements included in this news release. These statements speak only as of the date made and Neurochem is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise.

For further Information, please contact:
Dr. Lise Hébert
Vice President, Corporate Communications
lhebert@neurochem.com

275 Armand-Frappier
Laval (Quebec)
H7V 4A7
Tel: (450) 680-4500
Fax: (450) 680-4501

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