EXHIBIT 99.2


FOR IMMEDIATE RELEASE


                  US FIFTH CIRCUIT DISMISSES REMAINING CLAIM IN
                ZONAGEN CLASS ACTION LAWSUIT AND DENIES REHEARING


THE WOODLANDS, Texas--(BUSINESS WIRE)--July 16, 2004--Zonagen, Inc.
(Nasdaq:ZONA)(PCX:ZNG) announced today that on June 16, 2004, the United States
Court of Appeals for the Fifth Circuit affirmed the June 13, 2003 judgment of
the United States District Court for the Southern District of Texas dismissing
the one claim remaining from the consolidated class action lawsuit described in
the Company's SEC filings. In addition, on July 15, 2004, the Court of Appeals
denied the plaintiff's request for a rehearing. The case was originally
consolidated on May 29, 1998 in District Court, and on March 30, 1999, such
court dismissed the case with prejudice. On September 25, 2001, the Court of
Appeals affirmed the 1999 dismissal with respect to all but one claim which was
sent back to the District Court. The June 13, 2003 judgment of the District
Court dismissed the remaining claim with prejudice. The time for the plaintiff
to file a writ of certiorari with the United States Supreme Court has not yet
expired.

About Zonagen

Zonagen is engaged in the development of pharmaceutical products that address
diseases and conditions associated with the treatment of hormonal and
reproductive system disorders. For more information, visit Zonagen's web site at
http://www.zonagen.com.

Any statements that are not historical facts contained in this release are
forward-looking statements that involve risks and uncertainties, including but
not limited to those relating to the final disposition of the above lawsuit, and
others identified in Zonagen's Annual Report on Form 10-K for the year ended
December 31, 2003, as filed with the Securities and Exchange Commission (SEC).
These documents are available on request from Zonagen or at www.sec.gov. Zonagen
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.


CONTACT:  Zonagen, Inc., The Woodlands
          Joe Podolski, 281-719-3447
          podolski@zonagen.com


SOURCE: Zonagen, Inc.