Exhibit 99.1

                                     [LOGO]
                          DISCOVERY LABORATORIES, INC.

FOR IMMEDIATE RELEASE:

                 Discovery Laboratories Completes $27.5 Million
                           Private Placement Financing

Doylestown, PA -- June 20, 2003 -- Discovery Laboratories, Inc. (Nasdaq: DSCO),
a late-stage biopharmaceutical company developing its proprietary surfactant
technology as Surfactant Replacement Therapies for respiratory diseases, today
announced that it has completed the sale of securities in a private placement to
selected institutional and accredited investors for gross proceeds of
approximately $27.5 million.

Under the terms of the financing, Discovery sold approximately 5.0 million newly
issued shares of Common Stock at a price of $5.50 per share and warrants
exercisable for approximately 1.0 million shares of common stock with an
exercise price of $6.875 per share.

The financing included Quaker BioVentures, Inc., BayStar Capital Management,
LLC, Special Situations Funds, PharmaBio Development, Inc. (the investment
subsidiary of Quintiles Transnational Corp.), Laboratorios Del Dr. Esteve S.A.,
and other selected investors including a well-known mutual fund. Gerard Klauer
Mattison & Co., Inc. acted as the placement agent for this transaction.

"Surfactant replacement therapy has the potential to address life threatening
respiratory disorders and large pharmaceutical markets," said Robert J.
Capetola, Ph.D., President and CEO. "To my knowledge, we are the only company
with the technology to produce high quality humanized surfactants for a variety
of respiratory diseases. I am pleased that the financial community is responding
positively to Discovery. The continued validation of our technology has been
supported by a series of announcements since the third quarter of 2002 --
including positive clinical data from our Phase 3 supportive trial of
Surfaxin(R) for Respiratory Distress Syndrome in premature infants, the
encouraging results of Part A of our Phase 2 trial of Surfaxin for Acute
Respiratory Distress Syndrome in adults, and the development of our engineered
surfactant as an inhalable aerosol with the potential to treat Severe Asthma and
Acute Lung Injury. Significant milestones are upcoming for Discovery, most
notably, the results of our pivotal Phase 3 trial for Surfaxin for Respiratory
Distress Syndrome in premature infants, the results of Part B of our Phase 2
clinical trial for Surfaxin in Acute Respiratory Distress Syndrome in adults,
and entering the clinic in a Phase 1b/2a clinical trial with an aerosolized
surfactant for acute asthma."

John G. Cooper, Senior Vice President and CFO commented, "We are very pleased
with this successful financing. The announcement of positive data from our
supportive Phase 3 trial of Surfaxin for RDS in premature infants allowed us to
introduce Discovery and the potential of



Surfactant Replacement Therapy to a new group of quality investors. Our
financial resources as of March 31, 2003, included $14.2 million of cash, an
$8.5 million line of credit with Quintiles, and a $1 million lease line with
GECC Life Sciences. With the high level of investor interest to finance
Discovery, we believed it was prudent to be opportunistic and strengthen our
balance sheet. With the additional $26 million net proceeds from this financing,
we are well positioned to conclude our ongoing late-stage clinical trials for
Surfaxin, launch our aerosol clinical programs, and strengthen any future
negotiations with potential corporate partners.

The securities sold have not been registered under the Securities Act of 1933
and may not be offered or sold in the United States absent registration.
Discovery has agreed to provide, no later than 90 days after the closing of the
private placement, an effective SEC registration statement for the resale of the
common shares and the common shares underlying the warrants.

About Discovery Laboratories

Discovery Laboratories, Inc. is a biopharmaceutical company developing its
proprietary surfactant technology as Surfactant Replacement Therapies for
respiratory diseases including Respiratory Distress Syndromes, Acute Lung Injury
(ALI), asthma, Chronic Obstructive Pulmonary Disease (COPD), and upper airway
disorders. Discovery's surfactant technology produces an engineered version of
natural human lung surfactant that is designed to precisely mimic the essential
properties of human lung surfactant. Discovery believes that through its
surfactant technology, pulmonary surfactants have the potential, for the first
time, to be developed into a series of respiratory therapies for hospitalized
and ambulatory patients. Surfaxin, Discovery's lead product, is in Phase 3 and
Phase 2 clinical trials for critical care patients with life-threatening
respiratory disorders where there are few or no approved therapies available.
Discovery's first aerosol surfactant product is positioned to enter clinical
trials for hospital patients with severe asthma or acute lung injury. Discovery
has a commercialization alliance with Quintiles Transnational Corp. and a
strategic alliance with Laboratorios del Dr. Esteve S.A.

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 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), risks relating
to the progress of the Company's research and development, risks relating to the
lack of sufficient 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. 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-KSB, 8-K, 10-QSB and 10-Q, and amendments thereto.

Contacts

         John Cooper                               FOCUS Partners LLC
         CFO/SVP                                   Harvey Goralnick/David Zazoff
         215-340-4699                              212-752-9445
         ir@discoverylabs.com                      dsco@focuspartners.com

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