EXHIBIT 99.1

CONTACT:  Joyce Strand (Inhale) (650) 631-3138

      INHALE ANNOUNCES PROPOSED ISSUANCE OF CONVERTIBLE SUBORDINATED NOTES

SAN CARLOS, CALIF., OCTOBER 9, 2000 - Inhale Therapeutic Systems, Inc.
(Nasdaq:INHL) today announced that it intends to issue $150 million aggregate
principal amount of convertible subordinated notes ($172.5 million if an
over-allotment option is exercised in full). It intends to sell the notes in a
private offering to qualified institutional buyers under Rule 144A of the
Securities Act of 1933, as amended. The notes will be convertible into shares of
Inhale's common stock and will have a seven-year term.

The net proceeds of the offering will be used by Inhale to invest in various
product development programs relating to the company's business strategy, to
accelerate development of its next-generation technologies, and to provide
resources for potential acquisition and development of complementary
technologies, as well as for working capital and other general corporate
purposes. A portion of the proceeds may also be used to make cash payments to
certain holders of the 5% convertible subordinated notes due 2007 issued in
February 2000 in exchange for their agreement to convert into common stock. The
offering is subject to market conditions and other factors.

The notes to be offered will not be registered under the Securities Act or
applicable state securities laws, and may not be offered or sold in the United
States absent registration under the Securities Act and applicable state
securities laws or available exemptions from the registration requirements.

This release contains forward-looking statements that reflect management's
current views as to Inhale's business strategy, product and technology
development plans and funding, collaborative arrangements, clinical trials, and
other future events and operations. These forward-looking statements involve
uncertainties and other risks that are detailed in Inhale's reports and other
filings with the SEC, including its Form 10-Q for the fiscal quarter ended June
30, 2000. Actual results could differ materially from these forward-looking
statements.

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