(Durham, N.C.) Inspire Pharmaceuticals, Inc. (NASDAQ: ISPH) announced the closing of its previously announced public offering of 22,222,223 shares of its common stock. The Company also announced that the underwriter exercised in full its over-allotment option to purchase an additional 3,333,332 shares, bringing the total shares sold to 25,555,555 at a price of $4.50 per share for gross proceeds of $115 million. Net proceeds were $109 million, after deducting underwriting discounts and estimated offering expenses.

Deutsche Bank Securities Inc. acted as the sole underwriter of this offering.

A copy of the final prospectus supplement and accompanying prospectus relating to the offering may be obtained by sending a request to Deutsche Bank Securities Inc., Attn: Prospectus Department, 100 Plaza One, Jersey City, NJ 07311, Telephone number: +1-800-503-4611, Email: prospectusrequest@list.db.com.

A registration statement relating to these shares was filed with the Securities and Exchange Commission, and declared effective on May 1, 2007. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Inspire is a biopharmaceutical company focused on researching, developing and commercializing prescription pharmaceutical products for ophthalmic and pulmonary diseases. Inspire’s goal is to build and commercialize a sustainable portfolio of innovative new products based on its technical and scientific expertise. The most advanced compounds in Inspire’s clinical pipeline are Prolacria™ for dry eye and denufosol tetrasodium for cystic fibrosis, which are both in Phase 3 development and AzaSite® for blepharitis, which is in Phase 2 development. Inspire receives revenues related to the promotion of AzaSite for bacterial conjunctivitis, the co-promotion of Elestat® for allergic conjunctivitis and royalties based on net sales of Restasis® for dry eye. For more information, visit www.inspirepharm.com.