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Nastech Assigns Intellectual Property Related to the Development of RNA-Based Therapeutics to its Subsidiary, MDRNA, Inc.
Date:12/18/2007

Assignment of over 100 RNA-related Inventions a Key Step in Establishing

MDRNA as an Independent Company

BOTHELL, Wash., Dec. 18 /PRNewswire-FirstCall/ -- Nastech Pharmaceutical Company Inc. ("Nastech") (Nasdaq: NSTK) announced today that it has assigned (i) certain Nastech licenses to third-party intellectual property and (ii) Nastech's own intellectual property, as such intellectual property relates to the development of RNA-based therapeutics, to its subsidiary, MDRNA, Inc. ("MDRNA").

"The transfer of intellectual property rights for RNA-based therapeutics from Nastech to MDRNA is an important step in the process of creating MDRNA as an independent company. We believe MDRNA independence will ultimately enhance Nastech shareholder value," stated Steven C. Quay, M.D., Ph.D., Chairman, President and CEO of Nastech. "The MDRNA intellectual property estate includes rights to patents and patent applications covering technologies for the development and delivery of RNA-based therapeutics as well as their use in treating diseases. We believe that this agreement provides a strong foundation for MDRNA and will be important in attracting external funding for MDRNA."

About Nastech's Intellectual Property (IP)

The intellectual property estate includes rights to issued and pending patent applications relating to RNA-based therapeutics which have broad claims on their development, delivery and use in treating diseases.

The IP estate includes:

-- the building blocks for drugs, including novel nucleotides, cationic

lipids, and formulations;

-- the RNA drug cargo, i.e., RISC and Dicer substrate constructs;

-- delivery chemistry, both covalent conjugates and co
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SOURCE Nastech Pharmaceutical Company Inc.
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