[GRAPHIC OMITTED]
FOR IMMEDIATE RELEASE
Company Contact: Investor Contacts:
Delcath Systems, Inc. Todd Fromer / Garth Russell
M. S. Koly, Chief Executive Officer KCSA Worldwide
203-323-8668 (212) 896-1215 / (212) 896-1250
www.delcath.com tfromer@kcsa.com / grussell@kcsa.com
--------------- ---------------- -----------------
Delcath Systems Retains C.E. Unterberg, Towbin as Strategic Advisor
STAMFORD, Conn., August 16, 2006 -- Delcath Systems, Inc. (NASDAQ: DCTH), today
announced that it has retained C.E. Unterberg, Towbin for investment banking and
strategic advisory services. Delcath's retention of Unterberg as strategic
advisor follows shareholders' approval at the Company's June annual meeting of a
non-binding proposal to recommend that the Board of Directors retain a
nationally recognized investment banking and/or merger advisory firm.
Unterberg is a widely known and well-respected investment bank that specializes
in providing services to emerging growth companies in the life sciences, medical
products, biotechnology, specialty pharmaceuticals and medical devices
industries. Through its trading operation, Unterberg serves the aftermarket
needs of a variety of healthcare companies, while its research department serves
growth-oriented institutional investors seeking insight into emerging growth
companies in some of the most exciting, innovative and promising segments of the
healthcare industry.
"Our retention of C.E. Unterberg, Towbin is the latest demonstration of the
commitment of Delcath's Board of Directors to execute the plan it announced to
shareholders following the annual meeting," said M.S. Koly, President and CEO of
Delcath Systems. "After the annual meeting, we immediately initiated a rigorous
process to identify, interview and negotiate with a number of investment banks.
With a wealth of expertise in the healthcare and medical devices arena, we
believe Unterberg can provide valuable insight and strategic guidance to Delcath
on a number of important growth and governance initiatives including, among
other things, strategic transactions and raising Delcath's visibility on Wall
Street. We also hope to benefit from their advice as we work towards our stated
goals of recruiting additional board members, attracting potential partners for
treating other organs and most important, identifying new sites to join our
pivotal Phase III clinical trials.
Samuel Herschkowitz, MD, Chairman of the Board of Directors of Delcath, stated,
"We are pleased to have engaged Unterberg, Towbin and will be working very
closely with them over the coming weeks. We look forward to updating
shareholders with any further developments."
About C.E. Unterberg, Towbin
Founded more than 70 years ago, C.E. Unterberg, Towbin supplies capital and
financial advice to growth companies in the technology, healthcare and global
security industries. Its services include public offerings, mergers and
acquisitions and private placements. Unterberg also provides equity research,
sales and trading, asset management and private client services. Principal
offices are in New York, Menlo Park, San Francisco, Israel and Hong Kong.
About Delcath Systems, Inc.
Delcath Systems is a developer of isolated perfusion technology for organ or
region-specific delivery of therapeutic agents. The Company's intellectual
property portfolio currently consists of 12 patents on a worldwide basis,
including the United States, Europe, Asia and Canada. For more information,
please visit the Company's website, www.delcath.com.
This release contains forward-looking statements, which are subject to certain
risks and uncertainties that can cause actual results to differ materially from
those described. Factors that may cause such differences include, but are not
limited to, uncertainties relating to our ability to successfully complete Phase
III clinical trials and secure regulatory approval of our current or future
drug-delivery system and uncertainties regarding our ability to obtain financial
and other resources for any research, development and commercialization
activities. These factors, and others, are discussed from time to time in our
filings with the Securities and Exchange Commission. You should not place undue
reliance on these forward-looking statements, which speak only as of the date
they are made. Delcath undertakes no obligation to publicly update or revise
these forward-looking statements to reflect events or circumstances after the
date they are made.
On August 1, 2006, Laddcap filed a preliminary consent solicitation statement
with the SEC relating to Laddcap's proposal to, among other things, remove the
current Board of Directors and replace them with Laddcap's nominees. In
response, on August 7, 2006, Delcath filed a preliminary consent revocation
statement on Form PREC14A with the SEC (the "Preliminary Consent Revocation
Statement") in opposition to Laddcap's consent solicitation. Delcath
shareholders should read the Preliminary Consent Revocation Statement (including
any amendments or supplements thereto) because it contains additional
information important to the shareholders' interests in Laddcap's consent
solicitation.
The Preliminary Consent Revocation Statement, the definitive consent revocation
materials (when filed) and other public filings made by Delcath with the SEC are
available free of charge at the SEC's website at www.sec.gov. Delcath also will
provide a copy of these materials free of charge upon request to Delcath
Systems, Inc., Attention: M. S. Koly, Chief Executive Officer, (203) 323-8668.
Delcath has engaged MacKenzie Partners, Inc., who may be deemed to be a
participant in the solicitation of Delcath shareholders, to assist in connection
with Delcath's communications with shareholders regarding Laddcap's consent
solicitation. Information regarding the interests of MacKenzie Partners, Inc. is
contained in the Preliminary Consent Revocation Statement (including any
amendments or supplements thereto). In addition, certain of Delcath's directors,
officers and employees may be deemed to be participants in the solicitation of
Delcath's shareholders. Information regarding the names and interests of these
other persons is contained in the Preliminary Consent Revocation Statement
(including any amendments or supplements thereto).
# # #