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CytRx Announces RNAi Delivery Nanoparticle Technology Exclusively,Licensed to Subsidiary, RXi Pharmaceuticals, Described in,Peer-Reviewed Journal

LOS ANGELES--(BUSINESS WIRE)--Apr 23, 2007 - CytRx Corporation (NASDAQ:CYTR) today announced that the RNA interference (RNAi) delivery technology exclusively licensed to its majority-owned subsidiary, RXi Pharmaceuticals Corporation (RXi), has been published in the April 2007 issue of peer-reviewed scientific journal ACS Chemical Biology. The technology was developed by RXi Co-founder, Scientific Advisory Board member and University of Massachusetts Medical School (UMMS) Professor of Biochemistry and Molecular Pharmacology Tariq M. Rana, Ph.D., together with other UMMS researchers. An advance abstract of the journal article, "Design and Creation of New Nanomaterials for Therapeutic RNAi," is available online at http://pubs.acs.org/cgi-bin/abstract.cgi/acbcct/asap/abs/ cb7000582.html. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

RNAi has been shown to effectively interfere with the expression of targeted disease-associated genes with specificity and potency, and was co-discovered by 2006 Nobel Laureate Craig C. Mello, Ph.D., Co-founder of RXi and Chairman of RXi's Scientific Advisory Board. The published nanoparticle-based delivery agent enables the systemic delivery of RNAi agents in low clinically relevant doses in an animal model.

In January 2007, RXi announced that it had entered into significant agreements with UMMS to license RNAi intellectual property for all therapeutic applications. These agreements include an exclusive therapeutic license with rights to sublicense for the breakthrough nanotransporter technology.

"Delivery of intact RNAi compounds to target tissues is critical for the development of RNAi therapeutics," said Tod Woolf, Ph.D., President of RXi. "Our exclusive therapeutic rights to Dr. Rana's RNAi nanotransporter technology enhances what we believe to be RXi's competitive advantage
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