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Echo Therapeutics Receives Funding and Commitment of Approximately $5.5 Million
Date:1/6/2011

;The financial terms of Montaur's funding commitment are substantially similar to those of the private placement of common stock with regards to the per share purchase price, warrant coverage and terms of the warrants issued to each purchaser.

"The completion of this financing is a watershed event for the Company as we believe that we now have sufficient funds to substantially complete the product development, clinical studies and manufacturing of both our Prelude SkinPrep System, our skin permeation platform technology, and our Symphony tCGM System, our needle-free continuous glucose monitoring system," stated Patrick T. Mooney, M.D., Chairman and CEO of Echo Therapeutics.  "We are now fully prepared to support the near-term commercialization of Prelude for the topical delivery of 4% lidocaine cream through our partner, Ferndale Pharma Group.  Additionally, over the coming months we are now able to aggressively finalize the Symphony tCGM biosensor and complete the clinical validation necessary for FDA clearance of the product. This funding enhances the Company's competitive position for Symphony in the glucose monitoring market, a $12 billion-plus annual market opportunity. We look forward to testing our commercially-ready Symphony tCGM System in a clinical trial in the near term and ultimately filing for FDA approval."

The securities issued in the financing have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of an effective registration statement or an exemption from the registration requirements under the Securities Act.  This notice does not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state.

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