Discovery Labs Prices $23.5 Million Public Offering

Discovery Laboratories, Inc. DSCO today announced that it has priced an underwritten public offering of 10,000,000 units at a price to the public of $2.35 per unit for gross proceeds of $23.5 million. Each unit consists of one share of common stock, a five-year warrant to purchase 0.50 of a share of common stock and a fifteen-month warrant to purchase 0.50 of a share of common stock. The shares of common stock and warrants are immediately separable and will be issued separately such that no units will be issued. The five-year warrants are exercisable immediately upon issuance, have a five-year term and an exercise price of $3.20 per share. The fifteen-month warrants are exercisable immediately upon issuance, have a fifteen-month term and an exercise price of $2.94 per share. Net proceeds, after estimated underwriting discount and other estimated fees and expenses payable by Discovery Labs, and assuming the warrants are not exercised, will be approximately $21.6 million. The offering is expected to close on or about February 22, 2011, subject to satisfaction of customary closing conditions.