DURECT Corporation Announces Pricing of $50 Million Convertible Note Offering

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CUPERTINO, Calif., June 13 /PRNewswire-FirstCall/ —
DURECT Corporation (Nasdaq: DRRX) announced today that it agreed to privately
place $50 million aggregate principal amount of Convertible Notes due 2008.
These Notes will be convertible into DURECT Corporation common stock at a
conversion price of $3.15 per share (reflecting a premium of 25%, relative to
the NASDAQ closing price for DURECT common stock of $2.52 on June 12, 2003),
and will bear interest at a rate of 6.25% per annum. The placement of the
notes is expected to close on June 18, 2003. The Company has also granted the
initial purchaser of the Notes an option to purchase up to an additional $10.0
million principal amount of the Notes.

(Photo: http://www.newscom.com/cgi-bin/prnh/20020717/DRRXLOGO )

DURECT expects to use the net proceeds of the offering to fund the
research, development, manufacture and commercialization of existing and
future products and for general corporate purposes. The offering is being made
by means of an offering memorandum to qualified institutional buyers pursuant
to Rule 144A of the Securities Act of 1933, as amended.

The Notes and common stock issuable upon conversion of the Notes have not
been registered under the Securities Act of 1933, as amended, or applicable
state securities laws, and unless so registered, may not be offered or sold in
the United States, except pursuant to an applicable exemption from the
registration requirements of the Securities Act of 1933, as amended, and
applicable state securities laws.

This press release shall not constitute an offer to sell or the
solicitation of an offer to sell or the solicitation of an offer to buy the
Notes. This press release is being issued pursuant to and in accordance with
Rule 135c under the Securities Act of 1933, as amended.

The statements in this press release regarding DURECT’s financing
activities are forward-looking statements involving risks and uncertainties
that can cause actual results to differ materially from those in such
forward- looking statements. Potential risks and uncertainties include, but
are not limited to, DURECT’s ability to raise additional capital. Further
information regarding these and other risks is included in DURECT’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2002 filed with the
SEC on March 14, 2003, DURECT’s Quarterly Report on Form 10Q and other
periodic reports filed with the SEC under the heading “Factors that may affect
future results.”

DURECT Corporation

Schond L. Greenway, Senior Director, Investor Relations and
Strategic Planning of DURECT Corporation, +1-408-777-1417 or
Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020717/DRRXLOGO
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Web site: http://www.www.durect.com

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