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Modigene Awarded Second-Year Grant by Israeli Government to Support Development of Its Longer-Acting Human Growth Hormone
Date:1/27/2009

-hGH-CTP Development Program Has Been Approved For Second-Year Funding Through a Special Grant From the Israeli Office of the Chief Scientist-

NES-ZIONA, Israel, Jan. 27 /PRNewswire-FirstCall/ -- Modigene Inc. (OTC Bulletin Board: MODG) today reported that its Israeli-based R&D subsidiary has received approval for a second-year special grant from the Israeli Office of the Chief Scientist ("OCS") in support of the company's development program for hGH-CTP, its longer-acting version of human growth hormone (hGH). The new grant follows the company's recent announcement of promising results from a pilot hGH-CTP toxicity study in primates.

The OCS has approved this second-year grant to support Modigene's hGH-CTP program for the period September 2008 through August 2009. The grant will provide cash reimbursements of 40% of expenses paid for hGH-CTP product development during this period, up to a limit of 10 million NIS (about $2.6 million).

Human growth hormone is a natural protein produced by the pituitary gland in the brain. It fuels growth of the body's bone and muscle and has a variety of therapeutic uses. Patients with an hGH deficiency currently receive subcutaneous hGH injections on a near-daily basis. Approximately 95% of children diagnosed with a growth hormone deficiency receive treatment. The current annual market for hGH therapies is estimated at $2.5 billion.

"This second-year grant from the OCS is an important non-dilutive cash resource for Modigene and represents another validation of the potential of our technology and of our lead candidate hGH-CTP," said Abraham Havron, Ph.D., Chief Executive Officer of Modigene. "The OCS has awarded Modigene funds in support of both our hGH-CTP product candidate and our IFN-Beta-CTP longer-acting interferon product, and we are delighted that our longer-acting human growth program has been chosen for continued support out of many strong
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