Driver Notifies Atea Pharmaceuticals of Withdrawal of Notice of Nomination

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States Change in Board Composition Sorely Needed

Expresses Support for Radoff-JEC Group Nominees

STAMFORD, Texas, March 31, 2025 (GLOBE NEWSWIRE) -- Driver Management Company LLC ("Driver”) today delivered a letter to Atea Pharmaceuticals, Inc. ("Atea” or the "Company”) withdrawing a notice of nomination delivered to the Company on March 19, 2025 in order not to compete against the highly qualified candidates nominated for election to the Company's board of directors (the "Board”) by Bradley L. Radoff and Michael Torok (together with certain of their affiliates, the "Radoff-JEC Group”). In the letter, Driver expresses its view that change in the composition of the Board is sorely needed to ensure that potential strategic opportunities are evaluated based on what is best for Atea's stockholders, not its management or directors. In addition, Driver informed the Company that it would fully support the election of the Radoff-JEC Group's nominees at the Company's 2025 annual meeting of stockholders.

A copy of Driver's letter is set forth below:

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March 31, 2025

Atea Pharmaceuticals, Inc.

225 Franklin Street, Suite 2100

Boston, MA 02110

Attn: Andrea Corcoran, Chief Financial Officer, Executive Vice President, and Secretary

Re:        Withdrawal of Notice of Nomination

Dear Ms. Corcoran:

As you are aware, by letter dated March 19, 2025, Driver Opportunity Partners III LP ("Driver”) delivered a notice (the "Notice of Nomination”) of its intention to nominate the undersigned for election to the board of directors (the "Board”) of Atea Pharmaceuticals Inc., ("Atea” or the "Company”) at Atea's 2025 annual meeting (the "Annual Meeting”) of stockholders.

Driver's determination to deliver the Notice of Nomination was informed, in large part, by its concern that the Board does not understand that $5.75 is greater than $3.70.

By way of context, on May 22, 2023, an affiliate of Tang Capital Partners, LP ("Tang”) made an offer (the "Tang Offer”) to acquire all the outstanding shares of Atea's common stock for $5.75 per share in cash plus a contingent value right (a "CVR”) representing the right to receive 80% of the net proceeds payable from any license or disposition of Atea's programs. The closing price per share of Atea's common stock on May 19, 2023, the last trading day immediately preceding the date of the Tang Offer, was $3.70 per share. On May 30, 2023, the Board "unanimously rejected” the Tang Proposal, having concluded that the Tang Proposal "fundamentally undervalues the Company and [was] not in the best interests of Atea or its stockholders.” Today's closing price per share of Atea's common stock was $2.93.

While the Tang Proposal may or may not have resulted in a transaction that would have delivered consideration to Atea's stockholders of $5.75 per share plus a CVR, the speed with which the Board rejected the Tang Proposal, as well as its inability to demonstrate (at least as measured by the trading price for Atea's common stock) that the Tang Proposal "undervalued” the Company or was "not in the best interests of Atea or its stockholders, is deeply concerning to Driver as a stockholder.” Specifically, Driver is concerned that the Board's summary rejection of the Tang Proposal was not based on what was in the best interests of Atea's stockholder, but what was in the best interests of Atea's management and directors, particularly given the Company's lavish compensation of directors (averaging to $333,099 for the year 2023) and its Chief Executive Officer (total compensation of $5,925,790 for the year 2023).

Driver firmly believes that change in the composition of the Board is sorely needed to ensure that any potential strategic opportunities are evaluated based on what is best for stockholders, not the Company's management and directors.

Subsequent to Driver's delivery of the Notice of Nomination to the Company, a stockholder group including Bradley Radoff and Michael Torok (together with certain of their affiliates, the "Radoff-JEC Group”) announced that it had notified the Company of its intent to nominate three candidates for election to the Board at the Annual Meeting. Rather than compete with the Radoff-JEC Group's nominees for proxy votes that would have the effect of removing one of the incumbent directors from the Board, Driver has determined to withdraw the Notice of Nomination, with such withdrawal evidenced by this letter, and express its full support for the Radoff-JEC Group's nominees.

Based on the Open Letter issued to Atea stockholders by the Radoff-JEC Group on March 26, 2025, Driver has every confidence that the Radoff-JEC Group's nominees will ensure that any review of strategic opportunities will be based on what is in the best interests of Atea's stockholders, not its management or Board.

More to the point, Driver believes that the Radoff-JEC Group's nominees understand that $5.75 is greater than $3.70.

Regards,

Driver Management Company LLC

CONTACT: [email protected]