Paul Royalty Interest Repurchased, Resulting in Net Proceeds of

Approximately $15 million

CAMBRIDGE, Mass.–(EMWNews)–Dyax Corp. (NASDAQ: DYAX) announced today that it has entered into a $50

million loan agreement with Cowen Healthcare Royalty Partners, L.P. (“CHRP”)

secured by the Company’s phage display

Licensing and Funded Research Program (“LFRP”).

The Company used the proceeds from the loan, in part, to repurchase the

LFRP revenue interest granted to Paul Capital Partners’

Paul Royalty Fund II, L.P in August 2006, resulting in net proceeds of

approximately $15 million, before transaction fees.

The loan, which matures in August 2016, bears interest at an annual rate

of 16%, payable quarterly. Dyax may prepay the loan without penalty, in

whole or in part, beginning on the third anniversary of the closing

date. Dyax retains a substantial interest in the LFRP revenues,

including participation in revenues derived from products commercialized

by Dyax licensees. The loan agreement does not apply to Dyax’s

internal drug development or to any of its co-development programs. Upon

repayment of the loan, all rights to the LFRP revenues will revert to

Dyax. In connection with the loan, Dyax issued to CHRP a warrant to

purchase 250,000 shares of the Company’s

common stock at a 50% premium over the 30-day average closing price. The

warrant has an eight-year term and is exercisable beginning on the

one-year anniversary of the closing date.

“This strategic financing agreement reflects

the growing value of our proprietary phage display technology and

maturing LFRP pipeline,” commented Henry E.

Blair, Chairman, President and Chief Executive Officer. “The

net proceeds realized through this financing, together with the larger

retained interest in our future LFRP revenues resulting from the

repurchase of Paul Royalties’ interest,

improve the Company’s cash position in a

challenging financial market and support our ongoing efforts to reduce

cash burn.”

“This is an exciting and unique investment

opportunity for Cowen Healthcare Royalty Partners,”

commented Gregory B. Brown, M.D., Co-Founder and Managing Director of

CHRP. “Phage display, a proven and powerful

drug discovery tool, has been leveraged broadly through Dyax’s

successful Licensing and Funded Research Program. We believe Dyax is

well positioned to capture a substantial share of the growing

therapeutic antibody market, which is translating into more valuable

LFRP licensing deals, and that the innovative structure of this

financing enhances operating flexibility for Dyax while affording

attractive investment returns.”

Additional details on the loan agreement can be found in the Current

Report on Form 8-K that will be filed by Dyax with the Securities and

Exchange Commission on or about the date hereof.

The securities offered in this private placement have not been

registered under the Securities Act of 1933, as amended or state

securities laws, and cannot be offered or sold in the United States

absent registration with the Securities and Exchange Commission or an

applicable exemption from the registration requirements. This press

release is neither an offer to sell nor a solicitation of an offer to

buy any of the securities discussed herein and shall not constitute an

offer, solicitation or sale in any jurisdiction in which such offer,

solicitation or sale is unlawful.

About Dyax’s Licensing and Funded Research

Program (LFRP)

Dyax provides access to its phage display libraries through various

types of collaborations through its LFRP. In this way, Dyax offers its

partners therapeutic discovery capabilities and also extends its reach

into non-core areas such as imaging, diagnostics, research reagents and

affinity purification. The LFRP is comprised of a number of top

biopharmaceutical companies, including Amgen, Biogen-Idec, ImClone,

sanofi-aventis and Wyeth, among others. To date, Dyax has LFRP

agreements with more than 70 licensees and collaborators, resulting in

thirteen clinical-stage product candidates and one approved product.

About Dyax

Dyax is focused on advancing novel biotherapeutics for unmet medical

needs, with an emphasis in oncology and inflammation. Dyax utilizes its

proprietary drug discovery technology, phage display, to identify

antibody, small protein and peptide compounds. Dyax, on its own or with

its partners, has advanced several product candidates from discovery and

lead validation into preclinical and clinical development. The Company’s

lead product candidate, DX-88, is a recombinant small protein that is

being developed by Dyax for its therapeutic potential for treating

hereditary angioedema (HAE). DX-88 has orphan drug designation in the

U.S. and E.U., as well as Fast Track designation in the U.S., for the

treatment of acute HAE attacks. In April 2008, Dyax licensed to Cubist

Pharmaceuticals the intravenous formulation of DX-88 for surgical

indications in North America and Europe. In addition to using phage

display for its internal pipeline, Dyax leverages this technology

broadly into revenue generating licenses and collaborations through its

Licensing and Funded Research Program (LFRP). Dyax is headquartered in

Cambridge, Massachusetts. For more information about Dyax Corp., please

visit www.dyax.com.

About Cowen Healthcare Royalty Partners

Cowen Healthcare Royalty Partners (CHRP), an affiliate of Cowen Group,

Inc., is a healthcare private equity firm with over $500 million under

management. The firm invests principally in commercial-stage

biopharmaceutical and medical device companies through the purchase of

royalty and Synthetic Royalty^SM interests, debt

and equity. CHRP’s investment team has over

90 years of healthcare-related experience, including principal

investing, structured finance, healthcare industry senior management,

Wall Street research and consulting, scientific and clinical experience.

For more information visit www.cowenroyalty.com.

Dyax Disclaimer

This press release contains forward-looking statements, including

statements regarding Dyax’s phage display

licensing and funded research program (LFRP), the LFRP’s

potential to generate future revenues and the potential for Dyax’s

licensees to bring products to market. Statements that are not

historical facts are based on Dyax’s current

expectations, beliefs, assumptions, estimates, forecasts and projections

about the industry and markets in which Dyax competes. The statements

contained in this release are not guarantees of future performance and

involve certain risks, uncertainties and assumptions, which are

difficult to predict. Therefore, actual outcomes and results may differ

materially from what is expressed in such forward-looking statements.

Important factors that may affect the extent of Dyax’s

patent portfolio and its potential for the identification of novel

compounds include the risks that: Dyax may not be able to obtain and

maintain intellectual property protection for its phage display

technology; others may develop technologies superior to Dyax’s

phage display technology; and other risks that are described or referred

to in Dyax’s most recent Annual Report on

Form 10-K and other periodic reports filed with the Securities and

Exchange Commission. Dyax cautions investors not to place undue reliance

on the forward-looking statements contained in this release. These

statements speak only as of the date of this release, and Dyax

undertakes no obligations to update or revise these statements, except

as may be required by law.

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