Exhibit 99.3

       DISCOVERY LABORATORIES EXPANDS ITS CAPITAL LEASE FINANCING FACILITY
        WITH GE HEALTHCARE FINANCIAL SERVICES TO APPROXIMATELY $9 MILLION

DOYLESTOWN, PA --NOVEMBER 2, 2004 -- DISCOVERY LABORATORIES, INC. (NASDAQ: DSCO)
today announced that available funds under its existing  capital lease financing
facility with GE Healthcare Financial Services have been increased by up to $6.5
million.  Including  the $2.5  million  currently  employed  under the  existing
arrangement, Discovery's lease line is now approximately $9 million.

Under the terms of the expanded financing arrangement, $5 million is immediately
available to Discovery  while an additional  $1.5 million remains subject to FDA
approval to market the company's lead product Surfaxin(R), for the prevention of
Respiratory  Distress Syndrome (RDS) in premature infants.  Subject to the terms
of the lease facility,  GE will make the finances  available for certain capital
equipment purchases  including  manufacturing,  information  technology systems,
laboratory, office and other related capital assets. The funds may be drawn down
through  September  2005 and are payable over three or four years,  depending on
the equipment.

John G.  Cooper,  Executive  Vice  President  and  Chief  Financial  Officer  of
Discovery  commented,  "The  continued  support  from  GE  Healthcare  Financial
Services secures an important component of our financing strategy.  Our business
plan for 2005  includes the  potential  commercial  launch of our lead  product,
Surfaxin for Respiratory  Distress Syndrome in premature infants,  and advancing
the clinical  development  of our Acute  Respiratory  Distress  Syndrome and key
aerosol Surfactant  Replacement  Therapy programs.  This capital lease financing
facility will be used to invest in  additional  information  technology  systems
such as sales,  materials requirements planning and medical safety monitoring to
support potential commercialization,  and manufacturing capabilities for planned
commercial and clinical requirements."

ABOUT DISCOVERY LABORATORIES

Discovery  Laboratories,  Inc. is a  biopharmaceutical  company  developing  its
proprietary  surfactant technology as Surfactant Replacement Therapies (SRT) for
respiratory  diseases.  Surfactants are compositions  produced  naturally in the
lungs and essential for breathing. Discovery's technology produces an engineered
version of natural human lung  surfactant  that is designed to closely mimic the
essential  properties of human lung surfactant.  Discovery believes that through
its technology, pulmonary surfactants have the potential, for the first time, to
be developed into a series of respiratory therapies for patients where there are
few  or no  approved  therapies  available.  Discovery  has  filed  a  New  Drug
Application with the FDA and a Marketing Authorization Application with the EMEA
for clearance to market Surfaxin, the Company's lead product, for the prevention
and treatment of Respiratory Distress Syndrome in premature infants.

More  information  about  Discovery is available  on the  Company's  Web site at
www.DiscoveryLabs.com.

ABOUT GE HEALTHCARE FINANCIAL SERVICES, LIFE SCIENCE FINANCE

GE  Healthcare  Financial  Services,  a unit of GE  Commercial  Finance,  is the
premier  provider of capital,  financial  solutions and related services for the
global healthcare  market.  With $13 billion in assets, GE Healthcare  Financial
Services offers a full range of financing  capabilities  from equipment  leasing
and real estate  financing  to working  capital  lending,  vendor  programs  and
acquisition  financing.  The Life Science Finance group delivers  innovative and
flexible  financing   solutions  to  help  customers  preserve  their  cash  and
liquidity. For over a decade, GE Healthcare Financial Services has assisted life
science  companies  large and small,  from the first  venture round to post-IPO.
With a  portfolio  exceeding  $400  million,  GE has  partnered  with  over  300
companies throughout the United States, Canada and Europe. For more information,
visit www.GEHealthcareFinance.com.


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To the extent that statements in this press release are not strictly historical,
including  statements  as to  business  strategy,  outlook,  objectives,  future
milestones,  plans,  intentions,  goals,  future  financial  conditions,  future
collaboration  agreements,  the success of the  Company's  product  development,
events  conditioned on stockholder or other approval,  or otherwise as to future
events, such statements are  forward-looking,  and are made pursuant to the safe
harbor provisions of the Private  Securities  Litigation Reform Act of 1995. The
forward-looking  statements  contained  in this  release  are subject to certain
risks and  uncertainties  that could cause actual  results to differ  materially
from the  statements  made.  Among the factors  which could affect the Company's
actual  results and could cause  results to differ from those  contained  in the
forward-looking   statements  contained  herein  are  the  risk  that  financial
conditions may change,  risks relating to the progress of the Company's research
and development,  the risk that the Company will not be able to raise additional
capital or enter into additional  collaboration  agreements (including strategic
alliances for our aerosol and Surfactant Replacement  Therapies),  risk of delay
in the Company's preparation and filing of applications for regulatory approval,
risk of delay in the FDA's or other health regulatory  authorities'  approval of
any applications filed by the Company,  risks that any such regulatory authority
will not approve the marketing and sale of a drug product even after  acceptance
of an application filed by the Company for any such drug product, risks relating
to the ability of the Company's  third party contract  manufacturers  to provide
the Company  with  adequate  supplies of drug  substance  and drug  products for
completion of any of the Company's clinical studies, other risks relating to the
lack of adequate  supplies of drug  substance and drug product for completion of
any of the Company's clinical studies,  and risks relating to the development of
competing  therapies and/or  technologies by other  companies.  Companies in the
pharmaceutical and biotechnology  industries have suffered  significant setbacks
in advanced  clinical  trials,  even after  obtaining  promising  earlier  trial
results.  Data obtained from tests are  susceptible to varying  interpretations,
which may delay,  limit or prevent regulatory  approval.  Those associated risks
and others are further  described in the Company's  filings with the  Securities
and Exchange  Commission  including the most recent reports on Forms 10-K,  10-Q
and 8-K, and any amendments thereto.

COMPANY CONTACTS:

John G. Cooper, EVP and CFO
Kori Beer, IR & Communications
215-340-4699


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