Exhibit 99.1
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RELEASE: IMMEDIATE                 Investor Contact:  Bernard Patriacca - VP/CFO
                                                      (781) 862-4003




 MACROCHEM DISCONTINUES RESEARCH AND PRODUCT DEVELOPMENT ACTIVITIES, TERMINATES
             SUBSTANTIALLY ALL NON-MANAGEMENT PERSONNEL, WILL SEEK
                         BUYER FOR COMPANY OR ITS ASSETS

     SEPTEMBER 1, 2005, LEXINGTON, MA - At the direction of its board of
directors, MacroChem Corporation (Nasdaq: MCHM) is discontinuing all research
and product development activities. The Company will seek to sell the business
or its assets. As previously announced, the Company has been evaluating
strategic alternatives, such as raising additional capital or a merger or
acquisition, a sale of the Company or a sale or licensing of its intellectual
property. To date, the Company has been unable to identify a satisfactory
strategic alternative.

     On August 31, 2005, the Company terminated substantially all its
non-management personnel. The Company expects to incur a charge of approximately
$350,000 in the quarter ending September 30, 2005 in connection with these
terminations and the discontinuation of research and product development
activities. The Company is currently discussing with its executive officers the
restructuring of the Company's contractual obligations to those officers to
reduce expenses.

     The Company intends to attempt to sell the business or its intellectual
property and other operating assets as soon as possible. There is no assurance
that these efforts will be successful or that there will be any assets remaining
to be distributed to stockholders. The Company believes that it has sufficient
resources to fund expenses for the next three months in connection with its
efforts to sell the business or its assets, and has entered into a three month
sublease of a limited amount of office space at its current address for this
purpose.

     In addition to its portfolio of intellectual property and early-stage
product candidates, MacroChem has two clinical-stage product candidates
containing its patented enhancer, SEPA(R): Opterone(R), a topical cream for male
testosterone deficiency, and EcoNail(TM), a SEPA-enhanced antifungal nail
lacquer to treat a common and potentially debilitating nail infection known as
onychomycosis.

FORWARD-LOOKING STATEMENTS

     WITH THE EXCEPTION OF HISTORICAL INFORMATION CONTAINED IN THIS PRESS
RELEASE, THE MATTERS DESCRIBED HEREIN ARE FORWARD-LOOKING STATEMENTS THAT
INVOLVE RISKS AND UNCERTAINTIES. MACROCHEM'S ACTUAL RESULTS MAY DIFFER
SIGNIFICANTLY FROM THE RESULTS DISCUSSED IN THE FORWARD-LOOKING STATEMENTS.
FACTORS THAT MIGHT CAUSE SUCH A DIFFERENCE INCLUDE, BUT ARE NOT LIMITED TO,
THOSE DISCUSSED OR REFERRED TO IN THE SECTION ENTITLED "RISK FACTORS" IN
MACROCHEM'S ANNUAL REPORT ON FORM 10-K, AS WELL AS THOSE DISCUSSED ELSEWHERE
THEREIN, AND INCLUDE, WITHOUT LIMITATION, RISKS REGARDING PRODUCT DEVELOPMENT,
THE TIMING AND RESULTS OF CLINICAL TRIALS, THE REGULATORY APPROVAL PROCESS,
CAPITAL REQUIREMENTS, FINANCIAL CONDITION, PATENT PROTECTION AND DEPENDENCE ON
THIRD PARTIES FOR DEVELOPMENT AND LICENSING ARRANGEMENTS. READERS ARE CAUTIONED
NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK
ONLY AS OF THE DATE HEREOF. MACROCHEM UNDERTAKES NO OBLIGATION TO UPDATE
PUBLICLY ANY FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION,
FUTURE EVENTS OR OTHERWISE. FOR MORE INFORMATION VISIT OUR WEBSITE,
HTTP://WWW.MACROCHEM.COM.

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