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A 4-Week Therapy with Transition Therapeutics' E1-I.N.T. Leads to,Sustained Reductions in Blood Glucose Levels for 6 Months,Post-treatment in Type 2 Diabetes Patients

Final Results from Exploratory Phase IIa Clinical Trial in Type 2 Diabetes Patients Announced

TORONTO, June 28, 2007 /PRNewswire-FirstCall/ - Transition Therapeutics Inc. ("Transition") , today announces the results from its exploratory Phase IIa clinical trial indicating that 4-weeks of daily treatments with gastrin-based therapy, E1-I.N.T.(TM), showed sustained reductions in blood glucose control parameters, including haemoglobinA1C (HbA1c), for 6 months post-treatment. The type 2 diabetes patients enrolled in this study were using metformin with/without thiazolidinediones (TZD). Transition will host a conference call to discuss these data at 5:00 pm EST on Thursday June 28th, 2007.

"These data are very encouraging and show the potential of a regenerative therapy in diabetes," said Sherwyn Schwartz, MD, a noted diabetes researcher and the Director of the Diabetes & Glandular Disease Research Associates in San Antonio, Texas who was the lead investigator of the study.

"Achieving sustained improvements in glucose control for many months post-treatment following a 4-week therapy is unprecedented in type 2 diabetes. The improvements in HbA1c correlated with changes in multiple other clinical parameters suggesting that gastrin-based therapies, and specifically E1-I.N.T.(TM), have the potential to re-engage the body's natural mechanism to regulate glucose," said Dr. Tony Cruz, Chairman and Chief Executive Officer of Transition. "The immediate goal is to optimize the dosing regimen in a larger phase II study".

Key Efficacy Findings:

As in Transition's press release on March 5th, 2007, analysis of efficacy parameters was performed on type 2 diabetes patients with HbA1c levels of equal to or greater than 7% prior to treatment.

In the E1-I.N.T.(TM) treated group of patients, the mean HbA1c level was reduced by 0.94% to 1.21% vs. baseline levels in months 2 to 6 post-treatment. Mor
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