Click here to access the live audio webcast presentation at 14.00CET/8:00 AM EST, call number +32.2.401.53.06, or toll free from the US1.866.931.1567

Mechelen, Belgium and Munich, Germany; 26 November 2008 - GalapagosNV (Euronext: GLPG) and MorphoSys AG (FSE: MOR) announced today thelaunch of a long term co-development alliance aimed at discoveringand developing antibody therapies based on novel modes of action inbone & joint disease, including rheumatoid arthritis, osteoporosisand osteoarthritis.

The alliance spans all activities from target discovery through tocompletion of proof of concept clinical trials of novel therapeuticantibodies. Both companies will contribute their core technologiesand expertise to the alliance. Galapagos will provide antibodytargets implicated in bone & joint disease in addition to itsadenoviral target discovery platform to discover further targets forantibody development. MorphoSys will contribute its HuCAL antibodytechnologies to generate fully human antibodies directed againstthese targets. The initial goal is to further validate the targetsthrough disease-specific in vitro and in vivo testing of theantibodies. After successful validation, the alliance will selectantibody programs for pre-clinical and clinical development. Following proof of concept in human clinical trials, programs willbe partnered for subsequent development, approval and marketing.

Under the terms of the agreement, Galapagos and MorphoSys will sharethe research and development costs, as well as all future revenuesequally. Decisions will be made by a Joint Steering Committeecomprising members of both companies. An initial set of threetargets implicated in bone & joint disease has been selected for thecollaboration, and Galapagos is already commencing with production ofthese proteins for the alliance. Generation of antibodies directedagainst these targets will start in 2009. More targets will beselected using Galapagos' target discovery platform to fuel thealliance in the coming years. If successful, the first antibodyprograms based on these novel targets could enter the clinic withinfour to five years.

"With this alliance, we are adding a biologics strategy to our smallmolecule drug discovery. Galapagos is the world leader in discoveryof novel targets, and this alliance with MorphoSys enables us toexplore the potential of proprietary antibody targets. Antibodyapproaches have proven to be successful in developing new therapiesfor major diseases, including rheumatoid arthritis. Having bothapproaches, small molecules and antibodies, to fill our productpipeline in bone & joint disease will further establish Galapagos asthe leader in this field," said Onno van de Stolpe, Chief ExecutiveOfficer of Galapagos. "With our cash position and revenue streamsfrom both BioFocus DPI and our pharma alliances, we are in a goodfinancial position to enter into this alliance to create value forour shareholders."

"This alliance represents a major step in our efforts to gain accessto novel antibody targets for proprietary drug development in diseaseareas with a high unmet medical need. The partnership with Galapagoscombines both the scientific and financial strength of two leadingcompanies in their space," said Simon Moroney, Chief ExecutiveOfficer of MorphoSys. "We are excited to combine our broad antibodyexpertise with Galapagos' target discovery capabilities and diseaseknow-how to form a successful partnership. The access to noveldisease-related target molecules from a renowned partner acceleratesthe expansion of our proprietary antibody pipeline. This alliancealso complements our development efforts in the field of inflammationand arthritis including our lead program MOR103."

With this strategic alliance, MorphoSys gains access to a proventarget discovery engine as well as to Galapagos' expertise in bone &joint disease, to support its therapeutic antibody pipelineexpansion. The three main indications of bone & joint disease -rheumatoid arthritis, osteoporosis and osteoarthritis - all representvery significant market opportunities with several million peopleaffected worldwide and combined sales of drug treatments of more thanUS$ 15 billion in 2006.

Through the alliance with MorphoSys, Galapagos enters the rapidlygrowing market for therapeutic antibodies. In 2007, total sales forthe 20 antibody drugs on the market amounted to more than US$ 25billion and antibody sales are forecast to increase to approximatelyUS$ 50 billion in 2013. Fully human antibodies are recognized as thenext generation and the majority of therapeutic antibodies currentlyin development are humanized or fully human. The average industrytimescale from discovery to pre-clinical development of antibodytherapies is only two to three years, considerably shorter than theaverage six years for small molecules. Antibodies also incur lowerattrition rates than small molecules.

Conference call and webcast presentation

Galapagos will conduct a conference call open to the public today at14.00 Central European Time (CET)/8:00 AM US Eastern Standard Time(EST), which will also be webcast. To participate in the conferencecall, please call +32.2.401.53.06, or toll free in the US1.866.931.1567, ten minutes prior to commencement. A question andanswer session will follow the presentation of the results. Clickhere to access the live audio webcast. The archived webcast alsowill be available for replay shortly after the close of the call.

About antibodies

Antibodies are proteins that recognize and bind to foreignsubstances, such as bacteria or viruses, so that immune cells candestroy them. Each person has approximately one to two billiondifferent antibodies continuously flowing throughout the bloodstreamto fight infections and diseases in their human host. The idea ofspecifically using antibodies as therapeutics against variousdiseases was conceived more than 25 years ago. It is the ability ofantibodies to specifically recognize and thereby block or activatetarget molecules which researchers seek to exploit when developingantibody drugs.

About Galapagos' target discovery technology

Galapagos' target discovery engine is based on adenoviruses thatefficiently introduce human gene sequences into a wide variety ofhuman cells to knock-down specific proteins. High-throughput assaysthat represent a selected human disease state are then used tofunctionally select for those proteins that have a causative effectin those models of human disease. After rigorous validation of theseprotein targets, they form the basis for the development of noveldrugs.

About MorphoSys' HuCAL technology

The HuCAL (Human Combinatorial Antibody Library) technology is aunique and innovative concept for the in vitro generation of highlyspecific and fully human antibodies. The library comprises more than10 billion different functional and fully human antibodies. HuCALprovides a seamless transition from a rapidly generated antibodyfragment with outstanding binding characteristics to a fully humanantibody drug candidate. It is the system of choice for a broadrange of purposes reaching from target validation to drugdevelopment. Of course, HuCAL is also a direct source of antibodiesfor all kinds of diagnostic and therapeutic applications.

About MorphoSys

MorphoSys (FSE: MOR) is a publicly traded biotechnology companyfocused on the generation of fully human antibodies as a means todiscover and develop innovative antibody-based drugs againstlife-threatening diseases. MorphoSys's goal is to establish HuCAL asthe technology of choice for antibody generation in research,diagnostics and therapeutic applications. The Company currently hastherapeutic and research alliances with the majority of the world'slargest pharmaceutical companies including Boehringer Ingelheim,Centocor/Johnson & Johnson, Novartis, Pfizer and Roche. Within thesepartnerships, more than 50 therapeutic antibody programs are ongoingin which MorphoSys participates through exclusive license andmilestones payments as well as royalties on any end products.Additionally, MorphoSys is active in the antibody research marketthrough its AbD Serotec business unit. The business unit hasoperations in Germany (Munich), the US (Raleigh, NC) and UK(Oxford). More information about MorphoSys can be found atwww.morphosys.com.

About Galapagos

Galapagos (Euronext Brussels: GLPG; Euronext Amsterdam: GLPGA; OTC:GLPYY) is a drug discovery company with pre-clinical programs in boneand joint diseases and bone metastasis. Its BioFocus DPI divisionoffers a full suite of target-to-drug discovery products and servicesto pharmaceutical and biotech companies, encompassing targetdiscovery and validation, screening and drug discovery through todelivery of pre-clinical candidates. BioFocus DPI also providesadenoviral reagents for rapid identification and validation of noveldrug targets, compound libraries for drug screening as well aschemogenomics and ADMET database products to select targets andcompounds. Galapagos currently employs about 460 people and operatesfacilities in six countries, with global headquarters in Mechelen,Belgium. More information about Galapagos and BioFocus DPI can befound at www.glpg.com and www.biofocusdpi.com.

CONTACTSGalapagos NVOnno van de Stolpe, CEOTel: +31 6 2909 8028ir@glpg.comMorphoSys AGMario Brkulj, Manager Corporate Communications & Investor RelationsTel: +49 89 899 27 454mario.brkulj@morphosys.com

This release may contain forward-looking statements, including,without limitation, statements containing the words "believes,""anticipates," "expects," "intends," "plans," "seeks," "estimates,""may," "will," "could," "stands to," and "continues," as well assimilar expressions. Such forward-looking statements may involveknown and unknown risks, uncertainties and other factors which mightcause the actual results, financial condition, performance orachievements of Galapagos, or industry results, to be materiallydifferent from any historic or future results, financial conditions,performance or achievements expressed or implied by suchforward-looking statements. Given these uncertainties, the reader isadvised not to place any undue reliance on such forward-lookingstatements. These forward-looking statements speak only as of thedate of publication of this document. Galapagos expressly disclaimsany obligation to update any such forward-looking statements in thisdocument to reflect any change in its expectations with regardthereto or any change in events, conditions or circumstances on whichany such statement is based, unless required by law or regulation.

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