EXHIBIT 99.01



                        Cellegy Pharmaceuticals Completes
                             $11.6 Million Financing

South San Francisco, California, October 3, 2000 - Cellegy Pharmaceuticals, Inc.
(Nasdaq:  CLGY)  announced  today the  completion of a private  placement of 1.5
million shares of its common stock, resulting in $11.6 million of gross proceeds
to the Company.

Participants in the financing, which was self-managed by Cellegy, included funds
managed by Baker/Tisch Investments in New York, Capital Research & Management in
San Francisco,  and  Framlington  in the United  Kingdom.  Capital  Research and
Framlington  are new  investors  in the  Company.  Cellegy  has agreed to file a
registration statement covering shares issued in this transaction.

"We  welcome  our new  investors  and  thank  the  Baker/Tisch  group  for their
continued strong support," commented K. Michael Forrest,  Cellegy's Chairman and
CEO. "This  financing  will permit us to continue  rapid  development of our two
Phase  III  products,   Anogesic(R)  and  TostrexTM,   and  accelerate  clinical
activities  of  TostrelleTM  for the  treatment  of female  sexual  dysfunction.
Tostrelle will enter into an expanded Phase I/II study shortly,  and is expected
to enter into Phase II/III clinical trials next year."

Cellegy Pharmaceuticals is a specialty  biopharmaceutical company engaged in the
development of prescription  drugs and high performance skin care products.  The
Company  currently  has  two  prescription  drugs,  Anogesic(R)   (nitroglycerin
ointment) and TostrexTM (testosterone gel) undergoing Phase III clinical trials.
Assuming successful  completion of these trials,  Cellegy plans to file NDA's on
both drugs in 2001.  Cellegy is also  conducting  two Phase II  clinical  trials
using  Anogesic to treat  hemorrhoids,  a  condition  which  afflicts  over nine
million people in the U.S. alone. Tostrex is under development for the treatment
of male hypogonadism, a condition that can result in decreased energy and libido
in men. A third product,  TostrelleTM  (testosterone  gel), has just completed a
Phase I/II dose ranging study in the U.S.

This  press  release  contains  certain  forward-looking  statements,  including
statements  concerning product  development,  the results of clinical trials and
future dates for regulatory  submissions.  Actual results may differ  materially
from those contained in these forward-looking statements. Final clinical results
relating to Anogesic,  Tostrex and  Tostrelle  are not yet available and may not
satisfactorily  demonstrate  efficacy or safety.  Even if the trial  results are
positive,  successful product commercialization is not assured or may be subject
to  significant  delays.  For more  information  regarding  these and other risk
factors associated with the Company's business, refer to the Company's Quarterly
Report on Form 10-Q for the quarter  ended June 30, 2000,  and Annual  Report on
Form 10-K for the year ended December 31, 1999. Investors should not place undue
reliance on these  forward-looking  statements,  which only address events as of
the date of this press release.


                         Company Contacts: 650-616-2200
                                 www.cellegy.com

Richard Juelis                                                K. Michael Forrest
VP, Finance and CFO                                  Chairman, President and CEO