Web Press Release No. 182
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October 24, 2005

Albany Molecular Research, Inc. Announces Licensing Deal
with Bristol-Myers Squibb Company
Agreement Includes Licensing Fee, Funded R&D, Milestone & Royalty Opportunities for Multiple Potential Products

Albany, NY (October 24, 2005) -- Albany Molecular Research, Inc. (Nasdaq: AMRI) today announced a licensing agreement with Bristol-Myers Squibb (NYSE: BMY) for its broad program of compounds that encompass biogenic amine reuptake inhibitors in development for the treatment of depression and other central nervous system disorders.

Under the terms of the agreement, Bristol-Myers Squibb will receive an exclusive license to develop and commercialize multiple potential products from AMRI’s proprietary amine neurotransmitter reuptake inhibitors identified in one of AMRI’s proprietary research programs. AMRI is receiving an upfront payment of $8 million. Bristol-Myers Squibb will also provide approximately $10 million in research funding to AMRI over a three year period to further characterize existing compounds as well as identify additional compounds. In addition to the upfront payment and research funding, AMRI will be eligible to receive up to $66 million per compound in development and regulatory milestone payments for the first two compounds and additional milestone payments of up to $22 million per compound on subsequent compounds. Bristol-Myers Squibb will pay AMRI royalties on worldwide sales of commercialized compounds.

The agreement includes provisions for AMRI to potentially provide additional chemistry services, including manufacturing, should Bristol-Myers Squibb elect to outsource such activities.

The compounds identified to date encompass various combinations of amine-transporter inhibition profiles that act selectively or in combination to increase brain levels of serotonin, norepinephrine or dopamine. Triple reuptake inhibitors represent a new class of therapeutic agents which can potentially lead to an improved treatment for depression and/or other diseases of the central nervous system.

"We are thrilled to be working with Bristol-Myers Squibb on the further development of these compounds,” said AMRI Chairman, CEO and President Thomas E. D’Ambra, Ph.D. “We are excited by the commercial potential for these compounds and believe that ultimately there is a possibility that our combined efforts could yield multiple drugs with a range of different profiles as amine neurotransmitter reuptake inhibitors, useful for the treatment of several different CNS disease indications. This licensing agreement reflects the significant efforts put into the program by AMRI scientists. However, we recognize it is time to put this technology into the hands of a company that is better suited with the experience required to realize the significant commercial potential. Bristol-Myers Squibb is an ideal company for this technology, and we look forward to a productive and mutually rewarding collaboration.”

Albany Molecular Research, Inc. is a global drug discovery company that provides chemistry services to pharmaceutical and biotechnology companies and conducts its own proprietary R&D programs.


Albany Molecular Research, Inc., Forward-Looking Statement

Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. These statements may be identified by forward-looking words such as "may," "could," "should," "would," "will," "intend," "expect," "anticipate," "believe" and "continue" or similar words and include, but are not limited to, statements by AMRI’s Chairman, CEO and President and statements concerning the financial terms of the agreement, the potential development of multiple commercialized compounds, and a new class of therapeutic agents for diseases of the central nervous system. Readers should not place undue reliance on our forward-looking statements. The company's actual results may differ materially from such forward-looking statements as a result of numerous factors, some of which the company may not be able to predict and may not be within the company's control. Factors that could cause such differences include, but are not limited to (a) the company's performance under the collaboration with BMS; (b) BMS's continuous utilization of the company's services at levels set forth in the contract; (c) BMS's continued pursuit of programs under which the company provides services; (d) delay or denial of marketing approvals from the FDA resulting from, among other things, adverse FDA decisions or interpretations of data that differ from BMS’s interpretations and that may require additional clinical trials or potential changes in the cost, scope and duration of clinical trials; (e) if approved, the inability to successfully launch, increase sales of or sustain the product or products in the market; (f) the inability to successfully and efficiently scale-up manufacturing for commercialized compounds; and (g) the outcome of clinical work that will be required to commercialize compounds, as well as those factors discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2004 as filed with the Securities and Exchange Commission on March 16, 2005 and the company's other SEC filings. The company does not undertake any duty to and does not intend to update any forward-looking statements contained in this press release after the date of this press release.

Media Contact: David Albert, Director of Communications, Albany Molecular Research, Inc., 518-464-0279, ext. 2229

Investor Contact: P. Curtis Schenck, Investor Relations Manager, Albany Molecular Research, Inc., 518-464-0279, ext. 2933

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