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FOR IMMEDIATE RELEASE
 Nastech Announces Fourth Quarter and Full Year 2005 Financial Results
 Bothell, Wash., March 15, 2006 
 (3-36) ® ®
     RECENT CORPORATE HIGHLIGHTS
 
    
    Announced collaboration with Procter & Gamble to develop and commercialize Parathyroid Hormone (PTH1-34) nasal
spray for the treatment of osteoporosis with the potential for $577 million in development and commercialization
milestones, product sales royalties, research and development reimbursement and manufacturing revenue
    
    Announced multi-compound, feasibility study agreement with Novo Nordisk A/S




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
    
    Will reacquire its rights to PYY3-36 nasal spray for the
treatment of obesity from Merck & Co. Inc., and announced plans to
advance its clinical development
    
    Acquired RNAi therapeutics program targeting influenza from Galenea
    
    Successfully completed FDA Pre-Approval Inspection for Nastechs Bothell, WA manufacturing facility for commercial
manufacturing of calcitonin-salmon nasal spray for the treatment of osteoporosis
 Conference Call and Webcast Information
  http://www.nastech.com
 ABOUT NASTECH
 www.nastech.com
 Nastech Forward-Looking Statements
  Contacts:
 Nastech      Noonan Russo




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NASTECH PHARMACEUTICAL COMPANY INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  (In Thousands, Except Per Share Data)
 Three months ended
    
    
    Year endedDecember 31,
    
    
    December 31,2004
    
    
    2005
    
    
    2004
    
    
    2005(Unaudited)Revenue:License, research and product
revenue
    
    $
    1,451
    
    
    $
    1,294
    
    
    $
    1,847
    
    
    $
    7,449Total revenue
    
    
    1,451
    
    
    
    1,294
    
    
    
    1,847
    
    
    
    7,449Costs and expenses:Cost of product revenue
    
    
    68
    
    
    
    21
    
    
    
    258
    
    
    
    21R & D
    
    
    5,053
    
    
    
    7,775
    
    
    
    21,083
    
    
    
    30,334S, G & A
    
    
    2,251
    
    
    
    2,983
    
    
    
    8,997
    
    
    
    10,895Total
operating expenses
    
    
    7,372
    
    
    
    10,779
    
    
    
    30,338
    
    
    
    41,250Loss from operations
    
    
    (5,921
    )
    
    
    (9,485
    )
    
    
    (28,491
    )
    
    
    (33,801
    )Interest income
    
    
    162
    
    
    
    669
    
    
    
    344
    
    
    
    1,990Interest and other expense
    
    
    (160
    )
    
    
    (102
    )
    
    
    (462
    )
    
    
    (352
    )Net loss
    
    $
    (5,919
    )
    
    $
    (8,918
    )
    
    $
    (28,609
    )
    
    $
    (32,163
    )Net loss per common share:Basic and Diluted
    
    $
    (0.41
    )
    
    $
    (0.44
    )
    
    $
    (2.21
    )
    
    $
    (1.72
    )Shares used in computing net
loss per share:Basic and Diluted
    
    
    14,583
    
    
    
    20,234
    
    
    
    12,955
    
    
    
    18,719
 December 31,
    
    
    December 31,Selected Balance Sheet Data
    
    2004
    
    
    2005Cash, cash equivalents and investments
(includes restricted cash of $9,000 and
$998, respectively)
    
    $
    74,474
    
    
    $
    59,909Accounts receivable, net
    
    
    
    
    
    
    189Property, intangibles and other assets
    
    
    6,301
    
    
    
    12,855Total assets
    
    
    80,775
    
    
    
    72,953Working capital
    
    
    58,362
    
    
    
    55,198Accumulated deficit
    
    
    (83,453
    )
    
    
    (115,616
    )Stockholders equity
    
    
    58,148
    
    
    
    55,567