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Aethlon Medical Releases Shareholder Letter
Date:11/16/2011

vice that would prevent sepsis, a fatal bloodstream infection that is often the cause of death in combat-injured soldiers.  In this application, the open architecture of our technology platform provides a therapeutic template to immobilize a combination of affinity compounds to selectively target sepsis-enabling factors in circulation.  

DARPA estimates the successful development of this device would save thousands of lives and billions of dollars in the United States each year.  In regards to the global opportunity, more than 18 million cases of sepsis are reported each year, with more than six million resulting in death. We have also been tasked by DARPA to advance a novel blood pump design that seamlessly integrates with therapeutic devices, yet reduces or eliminates the systemic administration of anticoagulants normally required during extracorporeal therapies.

Last week, we received our first milestone payment under the DARPA award, which officially transitioned our corporate status from development-stage to revenue stage organization. Now that we are contract proven, we plan to increase our efforts to market the Aethlon ADAPT™ system to government health and military agencies that seek innovative strategies to address life-threatening or debilitating disease conditions.

With each subsequent sale of the Aethlon ADAPT™ system, we reinforce the value of our therapeutic vision, reduce our reliance on the capital markets, and further establish a unique business model that allows us to generate revenue as we clinically advance pipeline therapies to market. Our technology platform also provides a basis to establish collaborative business relationships with biotechnology and pharmaceutical organizations that might have interest in pursuing a medical device regulatory and commercialization pathway for their affinity drug agents.   As toxicity eliminates a majority of affinity drug agents from entering the market, we
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SOURCE Aethlon Medical, Inc.
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