Exhibit 99.02

            Cellegy Pharmaceuticals Files Declaratory Judgment Action
           Against PDI, Inc. Concerning Fortigel(TM) License Agreement

South San Francisco,  California, - December 12, 2003 - Cellegy Pharmaceuticals,
Inc.  (Nasdaq NM: CLGY)  announced  today that it filed a  declaratory  judgment
action in federal district court in San Francisco  against PDI, Inc. relating to
the exclusive License Agreement between PDI and Cellegy entered into in December
2002 concerning  Cellegy's product  Fortigel(TM)  (testosterone gel).  Cellegy's
lawsuit  follows  required  mediation over PDI's recent  assertions that Cellegy
breached  several  provisions  of the License  Agreement  and failed to disclose
relevant  facts,  and its claim that it is entitled to several  kinds of alleged
damages,  including  return of the initial  license fee that PDI paid to Cellegy
when the agreement was signed.  Cellegy seeks, among other things, a declaration
that it has fully complied with the License  Agreement and that PDI's claims are
without merit.

Cellegy Pharmaceuticals is a specialty  biopharmaceutical company engaged in the
development   and  marketing  of   prescription   drugs  for  the  treatment  of
gastroenterology  disorders,  sexual  dysfunction,  and the use of nitric  oxide
donors for the treatment of certain cancers.

This press release contains forward-looking statements.  Investors are cautioned
that  these  forward-looking  statements  are  subject  to  numerous  risks  and
uncertainties,   known  and  unknown,  which  could  cause  actual  results  and
developments  to differ  materially  from  those  expressed  or  implied in such
statements.  Such risks and  uncertainties  relate to, among other factors:  the
outcome of ongoing clinical  trials;  the outcome and timing of discussions with
the FDA,  particularly  with regard to  additional  requirements  for  marketing
approval  of  Fortigel;   and  the  need  and  ability  to  complete   corporate
partnerships and financings.  Although  Cellegy has initiated legal  proceedings
relating to the License  Agreement,  there can be no  assurances  regarding  the
outcome of any such proceedings,  or any potential counterclaims by PDI, and the
Company  could be  required  to devote  significant  time and  resources  to the
proceeding.  An  adverse  outcome in any such  proceeding  could have a material
financial impact on Cellegy. For more information regarding risk factors,  refer
to the  Company's  Annual  Report on Form 10-K for the year ended  December  31,
2002.

For More Information:

Richard Juelis                          K. Michael Forrest
Vice President, Finance & CFO           President & CEO
www.cellegy.com