EXHIBIT 99.01


      Cellegy Announces Cellegesic(TM) Approvable in the U.K. for Treating
                            Chronic Anal Fissure Pain


South San Francisco, CA - July 7, 2004 - Cellegy  Pharmaceuticals,  Inc. (Nasdaq
NM:  CLGY)  announced  today that the United  Kingdom's  Committee  on Safety of
Medicines ("CSM") will recommend that marketing  authorization be granted by the
Medicines and Healthcare  Products  Regulatory  Agency ("MHRA") for CellegesicTM
(branded  Rectogesic(R)  outside the United States) upon receipt of satisfactory
responses to minor  patient  information  and  packaging  specification  issues.
Formal approval is expected within the next several months.

Upon approval,  Rectogesic(R) (nitroglycerin ointment) will be indicated for the
treatment  of pain  associated  with chronic  anal  fissures.  The MHRA has also
agreed to act as a Reference Member State for regulatory  filings of the product
in other European  Community Member States, a process that generally takes about
six to nine  months from the time  formal  approval is granted in the  Reference
Member State.

Cellegy's regulatory filing provided data demonstrating that Rectogesic produced
a  statistically  significant  reduction in pain versus placebo when given twice
daily over an eight-week treatment period (p<0.0001) and was able to achieve its
effect much more quickly than the placebo (p<0.02).

K. Michael Forrest,  Cellegy's CEO said, "We are delighted to receive this first
European  regulatory  determination  from  the  CSM,  which  we  also  see  as a
validation of our clinical development program for  Cellegesic/Rectogesic.  This
important  product will soon be available to fissure  sufferers in the U.K., the
first  market  in  Europe  in  which  Rectogesic  will be  approved,  adding  to
availability  in Australia,  New Zealand and South Korea,  where it was recently
launched.  In the United States, an NDA for Cellegesic has been submitted and is
now being reviewed by the Food and Drug Administration."

Cellegy is currently in discussions with commercial  partners for the product in
Europe and is seeking a partner in Japan.  The  Company  plans to  commercialize
Cellegesic with its own sales force in the United States,  assuming  approval by
the FDA.

It is estimated  that there are over a million  people in Europe who suffer from
anal fissures, a painful condition for which there are no approved drug products
and for which the only  effective  therapy  is a surgical  procedure  that often
leaves patients incontinent.  Cellegy believes that the utility of nitroglycerin
in treating anal  fissures is well  recognized  and that the  Company's  product
fills a large unmet medical need.  Rectogesic,  when  available,  will provide a
uniform   product   manufactured   under  GMP   conditions   to  MHRA   approved
specifications.


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Cellegy Pharmaceuticals is a specialty  biopharmaceutical company engaged in the
development   and  marketing  of   prescription   drugs  for  the  treatment  of
gastrointestinal disorders, sexual dysfunction, and certain cancers. In addition
to the fissure  indication,  the Company is also  developing  Cellegesic for the
treatment of hemorrhoids and dyspareunia,  a painful  condition that prevents or
inhibits  sexual  intercourse in more than 5 million women in the United States;
there are currently no effective drug treatments for either of these conditions.
Other products being developed by Cellegy  address a number of other  conditions
including prostate cancer, Raynaud's Disease and Restless Leg Syndrome.

Cellegy is also  developing  two  transdermal  testosterone  gel  products.  The
Company has  previously  announced  results of an interim  analysis of a Phase 2
study using  Tostrelle(R)  (testosterone gel) for the treatment of female sexual
dysfunction  showing a favorable  response rate of 71% versus a placebo response
of 13%. Fortigel(TM) (testosterone gel), for the treatment of male hypogonadism,
was the subject of a Not Approvable  letter by the FDA in July 2003.  Cellegy is
currently in discussions  with the FDA that it believes may lead to agreement on
the remaining clinical work required for approval of the product.

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:
completion,  timing and outcome of further discussions with the MHRA; the timing
and outcome of the FDA's review of the  Cellegesic  NDA for anal fissures in the
United States; the outcome and timing of discussions with the FDA,  particularly
with  regard to  additional  clinical  requirements  for  marketing  approval of
Fortigel;  the outcome of the pending  litigation  between Cellegy and PDI, Inc.
concerning the exclusive license agreement between the two companies relating to
Fortigel;  and  the  need  and  ability  to  complete  corporate   partnerships,
particularly in Europe.  For more information  regarding risk factors,  refer to
the Company's Annual Report on Form 10-K for the year ended December 31, 2003.

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