GPC BIOTECH : Announces Corporate Restructuring and Provides Pipeline Update

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announcement. 
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  * Internal oncology development efforts focused on satraplatin and
    cell cycle inhibitors
  * Restructuring to reduce costs and extend cash reserves
  * Management Board reduced to reflect smaller company size
  * Year-end 2007 cash position of approximately ? 65 million (~$ 95
    million), higher than previous guidance


Martinsried/Munich (Germany) and Princeton, N.J., February 25, 2008 -
GPC Biotech AG  (Frankfurt Stock Exchange:  GPC; NASDAQ: GPCB)  today
announced a corporate restructuring to sharpen the Company's focus on
oncology clinical development efforts and to further reduce costs  to
extend its  cash  reserves  to cover  approximately  three  years  of
operating expenses.    The restructuring  is  mainly focused  on  the
Company's early-stage research activities  in Munich and will  result
in a reduction  in the total  workforce of approximately  38% (or  38
employees).  The remaining work force will be 14 in Munich and 49  in
Princeton.

In addition, the  Company announced  that, by  mutual consent,  Elmar
Maier, Ph.D.,  Chief Operating  Officer/Martinsried and  Senior  Vice
President, Business  Development, and  Sebastian Meier-Ewert,  Ph.D.,
Senior Vice President and  Chief Scientific Officer, two  co-founders
of GPC Biotech, are retiring  from their positions on the  Management
Board  of  the  Company,  effective  immediately,  to  allow  for  an
appropriate resizing  of the  Board, given  the reduced  size of  the
Company.  However,  both Dr.  Maier and Dr.  Meier-Ewert will  remain
dedicated to the Company as  advisors. This includes their  continued
support  of  the  Company's  internal  pre-clinical  and  development
programs,  as  well  as   licensing  and  mergers  and   acquisitions
activities.

Bernd R. Seizinger, M.D., Ph.D., Chief Executive Officer, said:   "We
have implemented  a comprehensive  strategic  plan which  includes  a
sharper focus  on what  we believe  are our  most promising  oncology
development programs and  a further reduction  of the Company's  cost
structure, so that  we have  approximately three  years of  operating
cash on hand. This  will give us  additional flexibility, even  under
challenging  market  conditions.    These  goals  for  the  long-term
viability of GPC Biotech have sadly necessitated a staff reduction.
I would  like to  express  my sincere  appreciation to  our  affected
employees for their many contributions to the Company."

Dr. Seizinger continued:  "I would also like to express my  heartfelt
gratitude to Dr. Maier  and                     Dr. Meier-Ewert,  who
co-founded our  Company over  ten  years ago,  for their  vision  and
tireless efforts in  building GPC Biotech.   I am  very pleased  they
will continue to serve the Company in an advisory capacity that  will
include assisting us with our internal programs as well as  potential
licensing and M&A opportunities."

Oncology development pipeline - focus sharpened
The Company  also  provided an  update  on its  oncology  development
pipeline, with  its  efforts being  focused  on satraplatin  and  the
cell-cycle inhibitors  program. Internal  development of  the  1D09C3
monoclonal antibody is being discontinued.

Moving satraplatin forward
As previously communicated, GPC  Biotech has revised its  development
plan for satraplatin and decided to continue certain clinical trials,
stop other studies and selectively initiate new trials.  The  Company
continues to analyze  overall survival  data from the  Phase 3  SPARC
trial   in   second-line   hormone-refractory   prostate   cancer.
Pre-specified analyses  show  that subgroups  of  satraplatin-treated
patients   who   received   Taxotere®   (docetaxel)   as   first-line
chemotherapy or who had pain at baseline (Present Pain Intensity 2-5)
had a trend toward better survival.   The Company is also  evaluating
potential registrational  paths  for  satraplatin,  including  beyond
second-line  hormone-refractory   prostate  cancer.     A   Marketing
Authorization Application for satraplatin in Europe was submitted  by
partner Pharmion  in 2007,  and  a decision  on this  application  is
expected in the second half of 2008.

1D09C3 monoclonal antibody internal development discontinued
The Company  has  decided  to  discontinue  internal  development  of
1D09C3, a  monoclonal  antibody  in  Phase  1  clinical  testing  for
relapsed/refractory B-cell lymphomas.  Initial clinical testing  with
1D09C3 has not raised any unexpected or unacceptable safety  concerns
and the maximum tolerated  dose has not yet  been reached.   However,
newly published data have raised general concerns about the family of
IgG4 antibodies, to which 1D09C3  belongs.  These data indicate  that
an IgG4 antibody may swap one half of its Y-shaped structure with the
half of  a different  antibody,  resulting in  a new  molecule  whose
properties are unknown.  GPC Biotech has  recently conducted  testing
and determined that 1D09C3 has this "swapping" characteristic.  While
these results are not definitive, GPC Biotech has decided to not  put
further internal  resources into  developing  1D09C3.   However,  the
Company will seek a partner for the intellectual property relating to
this program.

RGB-286638 broad-spectrum  cell cycle  kinase inhibitor  expected  to
enter clinic within the next six months
The Company  reported that  RGB-286638, a  broad-spectrum cell  cycle
kinase inhibitor,  is  expected to  enter  Phase 1  clinical  testing
within the next  six months.   In a range  of pre-clinical models  in
both solid and liquid tumors, RGB-286638 resulted in tumor regression
and increased survival.  A starting dose and intravenous schedule for
the compound for Phase  1 clinical testing  has been determined,  and
clinical trials are  being designed in  both solid and  hematological
tumors.

A second drug  candidate, RGB-344064, has  been shown to  selectively
inhibit all key  cyclin-dependent kinase inhibitors  - proteins  that
control  major  parts  of  the  cell   cycle  -    but  it   exhibits
comparatively  little   interference  with   other  kinases.      The
pre-clinical testing required to move  this compound into the  clinic
is currently underway.

Financial guidance updated
The Company today also provided an  update on its year-end 2007  cash
position.  At  the end of  2007, the Company  had approximately ?  65
million   (~$95   million)    in   cash,    cash   equivalents    and
available-for-sale  securities.  This  figure  is  higher  than   the
previous  guidance  of  approximately  ?   60  million.    With   the
anticipated savings  from  the  restructuring  announced  today,  GPC
Biotech now expects the  cash position at December  31, 2007 will  be
sufficient to fund operations for approximately three years.

About GPC Biotech
GPC Biotech AG is a publicly traded biopharmaceutical company with  a
mission to discover, develop and commercialize new anticancer  drugs.
GPC Biotech's lead product candidate is satraplatin, an oral platinum
compound.  The Company has  various anti-cancer programs in  research
and development that leverage its expertise in kinase inhibitors. GPC
Biotech AG is headquartered in Martinsried/Munich (Germany) and has a
wholly owned U.S. subsidiary headquartered in Princeton, New  Jersey.
For additional information,  please visit GPC  Biotech's Web site  at
www.gpc-biotech.com.

This press release contains forward-looking statements, which express
the current  beliefs  and  expectations  of  the  management  of  GPC
Biotech.  Such statements are  based on current expectations and  are
subject to  risks and  uncertainties, many  of which  are beyond  our
control, that could cause future results, performance or achievements
to differ significantly from the results, performance or achievements
expressed or  implied  by  such  forward-looking  statements.  Actual
results could differ materially depending on a number of factors, and
we  caution   investors  not   to  place   undue  reliance   on   the
forward-looking statements contained in this press release  We direct
you to GPC Biotech's Annual Report  on Form 20-F for the fiscal  year
ended December  31,  2006  and  other reports  filed  with  the  U.S.
Securities and  Exchange Commission  for  additional details  on  the
important factors that may affect the future results, performance and
achievements of GPC Biotech. Forward-looking statements speak only as
of the date  on which  they are made  and GPC  Biotech undertakes  no
obligation to update  these forward-looking statements,  even if  new
information becomes available in the future.


For further information, please contact:

GPC Biotech AG
Martin Braendle
Director, Investor Relations & Corporate Communications
Phone: [phone]
[e-mail]

In the U.S.: Laurie Doyle
Director, Investor Relations & Corporate Communications
Phone: [phone]
[e-mail]


 
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GPC Biotech AG
Fraunhoferstr. 20 Martinsried 

WKN: 585150; ISIN: 
DE0005851505; Index: CDAX, MIDCAP, Prime All Share, TecDAX, HDAX, 
TECH All Share;
Listed: Prime Standard in Frankfurter Wertpapierbörse, Freiverkehr in 
Börse Berlin, 
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Düsseldorf, 
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Wertpapierbörse zu Hamburg, 
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