Alseres Pharmaceuticals, Inc.'s Chairman, Peter Savas, Reviews Company's Progress in its Annual Letter to St...(ates Canada Europe and other selec...),Health

and other selected countries.

-- Cethrin works by inhibiting the action of Rho, a key enzyme that

prevents axon (nerve) regeneration. Rho potentially plays an important

role in a wide range of indications, including acute spinal cord injury,

stroke, bone regeneration, cardiomyopathy and oncology. Alseres has

ongoing, sponsored-research for approaches to activate pro-regenerative

pathways that stimulate axon regeneration and for approaches to

deactivate anti-regenerative pathways that inhibit axon regeneration.

We believe that our Rho inhibitor technology is a fertile and

potentially valuable platform for continued new product research and

development.

-- Altropane(R), the company's lead molecular imaging product candidate,

is in Phase III clinical trials for the diagnosis of Parkinson's

Disease in patients with tremor. After a series of discussions with

the FDA and our expert advisors, we designed a two-part Phase III

program, termed POET-2. The first part of the program is presently

enrolling patients, as planned, in a 7-center clinical study to

generate an image training set. These images will be used to train the

expert readers in the study, as is customary for clinical trials of

molecular imaging agents. The second part of the program involves two

concurrent, replicate Phase III trials which are planned to be

initiated as soon as final agreement with FDA is reached. In addition,

by the end of the year, we plan to begin Phase II trials of Altropane,

in a new indication to aid in the diagnosis of Dementia with Lewy

Bodies "DLB".

-- We entered into an option agreement whereby Alseres can exercise an

option to amend certain terms of its Cethrin license with BioAxone

Therapeutic, Inc. in exchange f
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