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Genaera Receives Non-Compliance Notice from Nasdaq
Date:5/27/2009

PLYMOUTH MEETING, Pa., May 27 /PRNewswire-FirstCall/ -- Genaera Corporation ("the Company") (Nasdaq: GENR) today announced that it has received notification from Nasdaq stating that Genaera is no longer in compliance with Nasdaq Marketplace Rule 5250(c)(1) for continued listing because the Company has not yet filed its Form 10-Q for the period ended March 31, 2009. Under Nasdaq rules, the Company has 60 calendar days from the date of the Nasdaq notification letter to submit a plan to regain compliance with Nasdaq's continued listing requirements.

Genaera previously announced on April 28, 2009 that its Board of Directors approved a Plan of Complete Liquidation and Dissolution of the Company (the "Plan of Dissolution"), subject to stockholder approval. The Company intends to hold a special meeting of stockholders on June 4, 2009 to seek approval of the Plan of Dissolution and has filed definitive proxy materials with the Securities and Exchange Commission ("SEC"). If stockholder approval of the Plan of Dissolution is obtained at the special meeting, the Company intends to file a certificate of dissolution and delist its common stock from Nasdaq.

About Genaera

Genaera Corporation has developed trodusquemine (MSI-1436) for type 2 diabetes and obesity and has a fully out-licensed partnership with MedImmune, Inc. that is in phase 2 clinical testing in asthma. For further information, please see our Web site at www.genaera.com.

This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties, known and unknown. Forward-looking statements reflect management's current views and are based on certain expectations and assu
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SOURCE Genaera Corporation
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