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Nile Therapeutics to Transition to OTCQB Marketplace
Date:5/11/2011

SAN MATEO, Calif., May 11, 2011 /PRNewswire/ -- Nile Therapeutics, Inc. (NASDAQ: NLTX), a biopharmaceutical company that develops novel therapeutics for heart failure patients, today announced that the Company's securities will cease trading on The Nasdaq Capital Market effective with the open of business on May 12, 2011.  The Company expects its common stock to begin trading under the "NLTX" symbol on the OTCQB Marketplace following the suspension of trading on the Nasdaq Capital Market.

As previously disclosed, on November 30, 2010, the Company was notified by The NASDAQ Stock Market ("NASDAQ") that its securities were subject to delisting based upon the Company's failure to satisfy NASDAQ's minimum $1.00 bid price requirement, as set forth in Listing Rule 5550(a)(2).  The Company subsequently attended a hearing before the NASDAQ Listing Qualifications Panel (the "Panel") at which it presented its plan to regain compliance with the minimum bid price requirement by May 31, 2011, one component of which consisted of effecting a reverse stock split.  On March 1, 2011, the Panel granted the Company's request for an extension to remain listed on NASDAQ, subject to the Company evidencing a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days by May 31, 2011 and demonstrating compliance with all other applicable listing standards as of such date.  On May 10, 2011, the Company informed NASDAQ that it had determined not to proceed with a reverse stock split prior to May 31, 2011.  Accordingly, on May 10, 2011, the Company was notified by NASDAQ that trading in its securities on would be suspended on The Nasdaq Capital Market as of the open of business on May 12, 2011, with formal delisting to follow.

Operated by OTC Markets Group Inc., the OTCQB is a market tier for OTC traded companies that are registered
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SOURCE Nile Therapeutics, Inc.
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