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Hollis-Eden Announces Cancellation of Acute Radiation Syndrome RFP,by Department of Health and Human Services

reduce mortality from ARS in primates when administered as a single agent hours after radiation exposure without supportive care. This survival benefit was statistically significant, and was generated under GLP conditions. Results were recently published in a peer-reviewed journal. Further, clinical studies support NEUMUNE's attractive safety profile in humans and also show the ability of the compound to significantly increase the production of neutrophils and platelets in healthy volunteers.

"With NEUMUNE's attractive safety and efficacy profile, we are at a loss to explain why HHS would not want to procure this drug candidate for the protection of the American people. It would be more understandable if there were other medical countermeasures as far along in development with a superior profile, but given that HHS has chosen to cancel the solicitation altogether, that is clearly not the case. The ongoing search for a potentially ideal agent may never be realized and at the very least is years away. In the meantime, Americans are left unprotected from what numerous government officials claim is the greatest threat we face as a nation.

"We know that this is not the process Congress intended in overwhelmingly passing the Project BioShield legislation," added Hollis, "and we will make ourselves available over the next several weeks to members of our government who are committed to addressing these shortcomings. More importantly, we will now be tightly focused on moving our three clinical candidates into clinical trials for preventing or treating healthcare acquired infections, diabetes, arthritis and cancer. While this action clearly represents a near-term setback, we are convinced the future for this technology is very bright."

Conference Call: Hollis-Eden will conduct a conference call and live webcast on March 8, 2007 at 11:00 a.m. Eastern (8:00 a.m. Pacific) to discuss today's announcement. The conference call can be accessed by dialing 866-35
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