Tercica Appoints David L. Mahoney to Board of Directors

SOUTH SAN FRANCISCO, CA
October 14, 2004

Tercica, Inc., (Nasdaq: TRCA) announced today that it has appointed healthcare industry veteran David L. Mahoney to the company's Board of Directors, effective immediately. Tercica also announced today that Dr. Ashley Dombkowski, a Principal at MPM Capital, has left Tercica's Board.

"David joins Tercica's Board of Directors with extensive financial, managerial and operations experience from the pharmaceutical and healthcare services industries," said John A. Scarlett, M.D., President and Chief Executive Officer of Tercica. "His breadth of experience overseeing the strategic intersection of manufacturer, provider and payer relationships will provide a critical perspective to Tercica as we develop an endocrine products franchise and transition to a commercial organization."

Dr. Scarlett added, "We thank Dr. Dombkowski for the many contributions she made to Tercica from its inception through its initial public offering."

Mahoney brings more than 20 years of business management, strategic planning and corporate development experience to Tercica. Mahoney served as co-CEO of McKesson HBOC, Inc. and as CEO of iMcKesson LLC from July 1999 to February 2001. He joined McKesson in 1990 as Vice President for Strategic Planning. He is credited with developing innovative business strategies to grow the PCS Health subsidiary and played a key role in the sale of PCS to Eli Lilly & Co. in 1994. He had overall responsibility for McKesson's strategic relations with pharmaceutical and biotechnology companies and was responsible for the establishment of the Pharmaceutical Partners Group at McKesson, which provides product development, sales and marketing support to the pharmaceutical and biotechnology industries. In addition, Mahoney led the development of several McKesson eHealth initiatives focused on payer IT solutions, physician office connectivity and consumer healthcare decision support.

From 1981 to 1990, prior to joining McKesson, Mahoney was a principal with McKinsey and Company. He also serves on the Board of Directors of Corcept Therapeutics, Symantec Corporation, Live Oak School and KQED. Mahoney has a bachelor's degree from Princeton University and a Master's of Business Administration from Harvard University.

About Tercica
Tercica, Inc. is a biopharmaceutical company focused on the development and commercialization of rhIGF-1 for the treatment of short stature, diabetes and other endocrine system disorders. Tercica's initial target indication is Severe Primary Insulin-like Growth Factor-1 Deficiency (Severe Primary IGFD) in children. For further information on Tercica and Primary IGFD, please visit http://www.tercica.com.

SOURCE: Tercica, Inc.
Web Site: http://www.tercica.com