PRESS RELEASE
Published on May 19, 2003
EXHIBIT 99.1
Press Release
Contact: WaLisa M. Davenport
eXegenics Inc.
(214) 358-2000
E. Blair Clark (Investors)
Burns McClellan
(212) 213-0006
EXEGENICS ANNOUNCES RESIGNATIONS OF DIRECTORS, FILING OF LAWSUIT AND ADJOURNMENT
OF ANNUAL MEETING OF STOCKHOLDERS
Dallas, May 19, 2003 -- eXegenics Inc. (Nasdaq: EXEG) today announced that Dr.
Ira J. Gelb and Mr. Irwin C. Gerson have resigned from the Board of Directors.
In addition, Gary Frashier's service as a director of eXegenics has ended.
eXegenics today additionally announced that Joseph M. Davie, Ph.D had been
elected to the audit committee of the board of directors and that Walter
Lovenberg, Ph.D. had been elected lead director.
eXegenics also reported that on May 15, 2003, a lawsuit was filed by The M&B
Weiss Family Limited Partnership of 1996 in the Delaware Court of Chancery
against eXegenics, as a purported class action on behalf of the plaintiff and on
behalf of all other similarly situated stockholders of eXegenics, and as a
derivative action on behalf of eXegenics against certain directors and senior
officers of eXegenics. The complaint (which has not been served) alleges, among
other things, that the defendants have mismanaged eXegenics, have made
unwarranted and wasteful loans and payments to certain directors and third
parties, have disseminated a materially false and misleading proxy statement in
connection with the upcoming annual meeting of eXegenics' stockholders, and have
breached their fiduciary duties to act in the best interests of eXegenics and
its stockholders. The complaint seeks, among other things, court orders
mandating that the defendants cooperate with parties proposing bona fide
transactions to maximize shareholder value, make corrective disclosures with
respect to the latest proxy statement, and account to eXegenics and the
plaintiffs for damages suffered as a result of the actions alleged in the
complaint. The plaintiffs are in addition seeking an award of costs and
attorneys' fees and expenses. eXegenics strongly disagrees with the allegations
in the complaint and believes they are without merit.
eXegenics also today announced that its Annual Meeting of Stockholders has been
adjourned to June 17, 2003 at 9:00 AM at eXegenics' headquarters, in order to
allow more time for negotiations with a stockholder which might, among other
things, result in the identification of other candidates to be elected as
directors of eXegenics.
Safe Harbor
This release contains forward-looking statements. The words "believe," "expect,"
"intend", "anticipate," variations of such words, and similar expressions
identify forward-looking statements, but their absence does not mean that the
statement is not forward-looking. These statements are subject to certain risks,
uncertainties and assumptions that are difficult to predict. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of this release. eXegenics undertakes no obligation to
update any forward-looking statement to reflect new information, events or
circumstances after the date of this release or to reflect the occurrence of
unanticipated events.