MacroChem Announces Preferred Stock Conversions and US$3.5 Million Private Placement

Wellesley Hills, Massachusetts (ots/PRNewswire) -

MacroChem Corporation (OTC Bulletin Board: MACM) announced today
that all the holders of its Series C Preferred Stock have converted
their shares of preferred stock into 12,571,850 shares of common
stock, and the warrants to purchase 8,648,102 shares of common stock
previously issued with the Series C Preferred Stock have been reset
to purchase 17,885,848 shares with an exercise price of US$.60 per
share pursuant to anti-dilution provisions in the warrants. In
connection with the transaction, the Company closed a private
placement of US$3.5 million in gross proceeds, issuing 5,891,667
shares of common stock and five-year warrants to purchase 1,767,500
shares of common stock exercisable at US$.60 per share. Griffin
Securities, Inc. acted as placement agent in connection with the
private placement.

"We're pleased with the support and confidence of our shareholders
and new investors participating in this transaction," stated Robert
J. DeLuccia, President and Chief Executive Officer of MacroChem. "We
believe this transaction will simplify our capital structure by
leaving only common stock, warrants and options outstanding, enable
us to continue advancing EcoNail(R) through its Phase 2 clinical
program and initiate development work on our newly acquired product,
pexiganan, which has already completed two Phase 3 trials."

The securities offered and sold to the investors in the private
placement have not been registered under the Securities Act of 1933,
as amended (the "Securities Act") and were sold in reliance upon the
exemption from securities registration afforded by Regulation D under
the Securities Act. This press release does not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be
any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such state.

About MacroChem

MacroChem Corporation is a specialty pharmaceutical company that
develops and seeks to commercialize pharmaceutical products. Our lead
product candidate is EcoNail, a topically applied SEPA-based
econazole lacquer for the treatment of onychomycosis, a condition
commonly known as nail fungus. We recently acquired exclusive
worldwide license rights to pexiganan, a novel topical anti-infective
for the treatment of diabetic foot infection, which has already
completed two Phase 3 trials. Our other clinical stage product
candidate, Opterone(R), is a topically applied SEPA-based
testosterone cream designed to treat male hypogonadism. Our pipeline
of clinical-stage and early-stage product candidates is based on our
SEPA(R), MacroDerm(TM) and DermaPass(TM) drug delivery technologies.
For more information visit our website, http://www.macrochem.com .

Forward-Looking Statements

With the exception of historical information contained in this
press release, the matters described herein are forward-looking
statements that involve risks and uncertainties. MacroChem's actual
results may differ significantly from the results discussed in the
forward-looking statements. Factors that might cause such a
difference include, but are not limited to, those discussed or
referred to in the section entitled "Risk Factors" in MacroChem's
Annual Report on Form 10-K, as well as those discussed elsewhere
therein, and include, without limitation, risks regarding product
development, the timing and results of clinical trials, the
regulatory approval process, capital requirements, financial
condition, patent protection and dependence on third parties for
development and licensing arrangements. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of the date hereof. MacroChem undertakes no obligation to
update publicly any forward-looking statements, whether as a result
of new information, future events or otherwise. For more information
visit our website, http://www.macrochem.com .

Contact:
MacroChem: Bernard Patriacca -- VP/CFO
bpatriacca@macrochem.com
+1-781-489-7310
Investor Relations: The Investor Relations Group, Inc.
Christine Berni / Joseph Triunfo, +1-212-825-3210
cberni@investorrelationsgroup.com
jtriunfo@investorrelationsgroup.com
Media:
Bill Douglass / Michaela Heller, +1-212-825-3210
bdouglass@investorrelationsgroup.com
mheller@investorrelationsgroup.com

Web site: http://www.macrochem.com

ots Originaltext: MacroChem Corporation
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Bernard Patriacca, VP/CFO of MacroChem Corporation, +1-781-489-7310,
bpatriacca@macrochem.com; Investor Relations: Christine Berni,
cberni@investorrelationsgroup.com, or Joseph Triunfo,
jtriunfo@investorrelationsgroup.com, +1-212-825-3210, or Media: Bill
Douglass, bdouglass@investorrelationsgroup.com, or Michaela Heller,
mheller@investorrelationsgroup.com, +1-212-825-3210, all of The
Investor Relations Group, Inc.