updated 9/7/2010 8:16:04 AM ET 2010-09-07T12:16:04

NEW YORK, Sept. 7, 2010 (GLOBE NEWSWIRE) -- Arcadia Capital Advisors, LLC ("Arcadia"), a shareholder of Cypress Bioscience Inc. ("Cypress" or the "Company"), and its managing director, Richard S. Rofé ("Rofé") have released an open letter to Cypress shareholders citing concerns with current business strategy and actions of the Company's senior management team (the "Management") and Board of Directors (the "Board").

"The recent bid from Ramius Value and Opportunity Advisors for $4 per share in cash should have spurred the Company to evaluate the possibility of higher offers," stated Rofé. "By not doing so, the Board is not fulfilling its fiduciary duty to protect and enhance shareholder value."

Arcadia questioned Management's ability to execute its stated strategy of building a portfolio of drug candidates. The letter pointed out that the Company's investments have generally generated negative return on investment, and that those poor decisions have been reflected in the declines in stock price.

"We do not believe that Management and the Board have acted responsibly and prudently to preserve and build shareholder value. Their recent actions and acquisitions waste shareholders' cash and expose the Company to litigation risk," Rofé continued. "The Company has to stop making these acquisitions when they do not have the track record to support doing so," Rofé concluded.

"We think all Cypress shareholders can agree that the Company and Board should focus on protecting and enhancing shareholder value, not on spending shareholders' cash in risky transactions," Rofé added.

Click the attached link for the letter: https://irm.ipreo.com/OpenFileLink.aspx?ID1=eac6180765324627a9d9595576ee3903&ID2=67963690

About Arcadia Capital Advisors

Arcadia Capital Advisors is a private investment firm based in New York that employs a value-oriented investment philosophy in the management of long/short hedge funds focused on small and micro-cap companies. The firm is led by Richard Rofé and is sponsored by M.D. Sass-Macquarie Financial Strategies.

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