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Nuvelo Shareholders Approve Issuance of Common Stock Pursuant to Merger Agreement With ARCA biopharma
Date:1/7/2009

SAN CARLOS, Calif., Jan. 7 /PRNewswire-FirstCall/ -- Nuvelo, Inc. (Nasdaq: NUVO) today announced that the stockholders of Nuvelo have approved the issuance of Nuvelo Common Stock pursuant to the merger agreement dated September 24, 2008, as amended, between Nuvelo, ARCA biopharma and a Nuvelo subsidiary. Nuvelo's stockholders also voted to adjourn Nuvelo's special stockholder meeting until January 23, 2009, to solicit additional proxies in favor of a proposal to amend the Company's amended and restated certificate of incorporation to effect a reverse stock split of the issued and outstanding shares of Nuvelo's common stock. This proposal is a necessary condition to the completion of the proposed merger.

A substantial majority of the proxies received by Nuvelo to date reflect votes cast in favor of both the proposal regarding the reverse stock split and a separate proposal to amend the Company's amended and restated certificate of incorporation to increase the number of authorized shares of Nuvelo common stock to 250 million. However, approval of each of these proposals requires the affirmative vote of a majority of the issued and outstanding shares of Nuvelo's common stock, which was not received by the time of the stockholder meeting. As the proposal relating to the stock split is a necessary condition to the completion of the proposed merger, while the proposal relating to the increase in authorized shares of Nuvelo common stock is not, the Board of Directors of Nuvelo has withdrawn the proposal to increase the number of authorized shares and the special stockholder meeting has been adjourned to a later date to solicit additional proxies on the proposal authorizing the reverse stock split.

The Nuvelo stockholder meeting will reconvene at 9:00 a.m. PST on January 23, 2009 at Nuvelo's corporate headquarters lo
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SOURCE Nuvelo, Inc.
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