X0201 4 2004-02-27 0 0000946486 DISCOVERY LABORATORIES INC /DE/ DSCO 0001067985 CAPETOLA ROBERT J DISCOVERY LABORATORIES INC 3359 DURHAM RD DOYLESTOWN PA 18901 1 1 0 0 President and CEO Long Put (Right to Sell) 0 2004-02-27 4 J 0 472269 0 A 2006-02-27 2006-02-27 Common Stock 472269 472269 D On February 27, 2004, Dr. Capetola entered into a two-year variable prepaid forward contract. At maturity on February 27, 2006, Dr. Capetola will deliver a minimum of 377,825 shares of Common Stock up to a maximum of 472,269 shares of Common Stock, based on the closing sale price of the Common Stock on February 27, 2006. At Dr. Capetola's option, he may deliver cash in the amount equivalent to the value of the required number of shares at maturity. Dr. Capetola received net proceeds of $4,774,639.59 relating to such contract. Robert J. Capetola 2004-03-02