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Vasogen Announces Second Quarter 2009 Results
Date:7/14/2009

ed May 31, 2009 has decreased when compared with the same periods in 2008 due to the significant expenditures that were incurred during the 2008 periods to implement the restructuring that was announced on April 14, 2008. A portion of this decrease also relates to a $1.2 million non-cash provision taken against our clinical supplies during the three and six months ended May 31, 2008. This decrease is also the result of a significant reduction in the number of employees and a decision not to incur material expenditures to advance our products during the Company's ongoing strategic review process.

    Corporate Update

    -   To further reduce the rate at which we use our cash during our
        strategic review process, the employment of Graham Neil, our Vice-
        President, Finance, and CFO, was terminated effective July 14, 2009.
        Mr. Neil has agreed to fulfill the role of CFO, in a consulting
        capacity at substantially reduced compensation, to assist the Board
        in bringing closure to the ongoing strategic review process. As a
        result of this termination the number of full-time employees has been
        reduced to one.

    -   On April 24, 2009, we announced that Dr. Eldon R. Smith would succeed
        Terrance H. Gregg as Chairman of our Board of Directors due to the
        retirement of Mr. Gregg. Mr. Gregg's resignation from our Board is
        due to the requirements of his role as President and CEO of DexCom,
        Inc. In connection with his appointment, Dr. Smith's position as our
        Senior Vice President, Scientific Affairs and Chief Medical Officer
        was terminated.

    -   Pursuant to our restructuring plan, our Board of Directors and
        Management had been actively involved in a process of screening,
        reviewing, and short-listing potential opportunities, including the
        sale of the Company or a merger or acquisition, and exploring the
       
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