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Nastech Pharmaceutical Company Initiates Plan for Corporate Restructuring and Will Concentrate on Phase 2 Clinical Programs
Date:11/13/2007

e Nastech the ability to pursue independent investment to fund MDRNA's operations. Nastech plans to pursue such funding in the near-term, subject to market conditions, and expects to retain significant ownership in MDRNA following such financing. In addition, Nastech intends, subject to change based on market conditions or future change in strategy, to thereafter issue a dividend to Nastech's shareholders of a portion of the MDRNA equity held by Nastech, and to effect the public trading of those securities through a Form 10 filing.

The planned change in corporate structure will enable Nastech to continue its focus on the development of peptide and protein drug delivery technologies while better positioning MDRNA for strategic alliances and direct investment as it develops RNAi therapeutics targeting a broad range of diseases. The establishment of MDRNA as an independent company will also allow it to be better compared and valued relative to other companies in the field of RNAi therapeutics.

Finally, Nastech is implementing a workforce reduction plan as soon as feasible to align with the Company's development and clinical plans, which will help to conserve cash, cash equivalents and investments which as of September 30, 2007 were $58.1 million.

Conference Call and Webcast Information

Nastech management will host a conference call tomorrow to discuss the corporate restructuring and its current clinical programs. The call is scheduled for 8:00 a.m. Eastern Time (5:00 a.m. Pacific Time) Wednesday, November 14, 2007. To participate in the live conference call, U.S. callers should dial (866) 272-9941, and international callers should dial (617) 213- 8895. The access code for the live conference call is 21097811. To access the 24-hour telephone replay, U.S. callers should dial (888) 286-8010, and international callers should dial (617) 801-6888. The access code for the replay is 93920447.

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SOURCE Nastech Pharmaceutical Company Inc.
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