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ArQule Updates Plans for Chemical Technologies Business WOBURN, Mass.--(BUSINESS WIRE)--Dec. 6, 2005--ArQule, Inc. (Nasdaq: ARQL) today updated its previously announced plans to exit its Chemical Technologies business, as originally communicated in a press release on September 27, 2005. Pursuant to the Company's agreement with Pfizer dating from December, 2001 and amended in January, 2004, ArQule will continue to provide chemistry services to Pfizer until May 22, 2006. "I would like to thank our Chemical Technologies team for maintaining such a high level of achievement and commitment during our seven-year partnership with Pfizer," said Dr. Stephen A. Hill, president and chief executive officer of ArQule. "The orderly conclusion of the Chemical Technology service business, and the Pfizer agreement in particular, has allowed us to anticipate the associated reduction in revenues and expenses accordingly and to enable us to focus on our core mission as an oncology company." ArQule is committed to exit the Chemical Technologies business and has engaged Young and Partners, a New York-based investment bank, to explore a potential sale of its Chemical Technologies operations. The decision to exit this business is consistent with the Company's previously communicated intent to focus exclusively on the development of its oncology portfolio. As a consequence of this transition and due to increased clarity on the timing of certain research and development payments, ArQule is providing revised financial guidance for 2005 as follows. Year-end cash is expected to range between $135 million and $140 million, up from prior guidance of between $116 million and $121 million. All other financial guidance is unchanged from that provided on the Company's July 28, 2005 earnings conference call. ArQule also reiterates its previously communicated guidance of having sufficient cash to support its portfolio at least into Q1, 2008. More detailed financial guidance for 2006 will be provided, as usual, on the Company's fiscal year-end conference call.