On December 18, 2007, Tapestry Pharmaceuticals, Inc. (“Tapestry”) received notice from The Nasdaq Stock Market, Inc. (“Nasdaq”) that its minimum bid price had fallen below $1.00 for 30 consecutive business days and that its securities are, therefore, subject to delisting from the Nasdaq Capital Market. Nasdaq Marketplace Rule 4310(c)(4) requires a $1.00 minimum bid price for continued listing of an issuer’s common stock.

In accordance with section 4310(c)(8) of the Nasdaq Marketplace Rules, Tapestry has until June 15, 2008 (180 calendar days from December 18, 2007) to regain compliance. No assurance can be given that Tapestry will regain compliance during that period.

Tapestry can regain compliance with the minimum bid price rule if the bid price of its common stock closes at $1.00 or higher for a minimum of 10 consecutive business days during the initial 180-day period, although Nasdaq may, in its discretion, require an issuer to maintain a bid price of at least $1.00 per share for a period in excess of ten consecutive business days (but generally no more than 20 consecutive business days) before determining that the issuer has demonstrated the ability to maintain long-term compliance. If compliance is not achieved by June 15,  2008, Tapestry will be eligible for another 180 day compliance period (until December 12, 2008) if it meets the Nasdaq Capital Market initial listing criteria as set forth in Nasdaq Marketplace Rule 4310(c) other than the minimum bid price requirement. No assurance can be given that Tapestry will be eligible for the additional 180-day compliance period or, if applicable, that it will regain compliance during any additional compliance period.