Press Release August 25, 2005

Nastech Announces Pricing of Common Stock Offering

BOSTON, Aug. 25, 2005 – Nastech Pharmaceutical Company Inc. announced the pricing of an underwritten public offering of 1,725,000 shares of its common stock at a price of $13.50 per share. The gross proceeds of the offering are expected to be approximately $23.3 million before deducting underwriting discounts and commission and offering expenses. The proceeds will be used for general corporate purposes.Needham & Company LLC acted as sole book-running manager in this offering.

The attorneys from Goodwin Procter who represented Needham & Company in this transaction are Mitchell Bloom, partner, and James Kasinger, senior associate.