SOURCE: Symbollon Pharmaceuticals, Inc.

August 24, 2006 11:02 ET

Symbollon Pharmaceuticals Announces Completion of Private Placements to Accredited Investors

Symbollon and Gardent Terminate IoGen™ Licensing Agreement

FRAMINGHAM, MA -- (MARKET WIRE) -- August 24, 2006 -- Symbollon Pharmaceuticals, Inc. (OTCBB: SYMBA) today announced the completion of private placements to accredited investors raising over the course of the summer net proceeds of $1,342,340 for an aggregate of 1,366,500 shares of Class A common stock, and a like number of redeemable warrants.

"We are extremely pleased that we were able to raise these funds," stated Paul Desjourdy, President and CEO of Symbollon Pharmaceuticals. "These funds will allow us to complete the enrollment of our ongoing Phase III pivotal clinical trial evaluating IoGen for the treatment of pain and tenderness associated with fibrocystic breast disease. Study enrollment is progressing, and we are planning an active subject recruitment campaign over the remainder of 2006 in order to complete enrollment by yearend."

The securities were offered and sold in reliance upon the exemption from registration pursuant to Section 4(2) under the Securities Act of 1933, as amended (the "Securities Act"). Each of the purchasers qualified as an accredited investor (as defined by Rule 501 under the Securities Act). Symbollon is obligated to file a resale registration statement for the purchasers.

In other news, Symbollon and Gardent Pharmaceuticals, Inc. (formerly known as Bioaccelerate Holdings, Inc.) mutually terminated their exclusive worldwide licensing and co-marketing agreement covering the use of IoGen for the treatment of pain and tenderness associated with fibrocystic breast disease. Under the terms of the agreement, entered into on April 12, 2005, Gardent was to fund ongoing Phase III development of IoGen. Gardent had the primary responsibility for the commercialization of IoGen, and Symbollon was to oversee the future clinical development efforts necessary to seek marketing approval for IoGen. The parties were to share in any net profits upon commercialization. Upon termination of the agreement all rights to IoGen licensed to Gardent in the agreement reverted back to Symbollon.

Paul Desjourdy commented that, "It is unfortunate that Gardent's financial difficulties have lead to the termination of this relationship, but with the termination of this agreement all of the rights to IoGen revert back to Symbollon. We believe IoGen has billion dollar sales potential, and the successful completion of the ongoing Phase III study will significantly enhance the overall value of IoGen. Our aim is to partner with strong sales and marketing pharmaceutical companies to commercialize IoGen upon completion of this study."

About Symbollon Pharmaceuticals, Inc. (OTCBB: SYMBA)

Symbollon Pharmaceuticals is a specialty pharmaceutical company focused on the development and commercialization of proprietary drugs based on its molecular iodine technology. Symbollon is conducting a Phase III clinical trial evaluating IoGen as a potential treatment for moderate to severe periodic pain and tenderness (clinical mastalgia) associated with fibrocystic breast disease (FBD). FBD is a condition that affects approximately 20 to 33 million women in the U.S., and there are approximately 7 to 13 million women suffering from clinical periodic mastalgia. The Company believes IoGen also may be useful in treating and/or preventing endometriosis, ovarian cysts, and premenopausal breast cancer. Symbollon is also in preclinical development of antimicrobial products based on the same molecular iodine technology, and intends to investigate the potential effectiveness of its technology in applications such as dermatology, oral care, upper respiratory tract conditions, urinary tract infection and wound care. For more information about Symbollon, please visit the company's website at http://www.symbollon.com.

Forward-Looking Statement

This news release contains statements by the Company that involve risks and uncertainties and may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from those currently anticipated as a result of a number of factors, including, but not limited to, the risks and uncertainties associated with whether (i) future clinical trial results will support the use of IoGen for the treatment of fibrocystic breast disease, (ii) the clinical data acquired from Mimetix Inc. will be acceptable exposure data for IoGen, (iii) Symbollon will be able to obtain the resources necessary to continue as a going concern, (iv) IoGen will successfully complete the regulatory approval process, (v) competitive products will receive regulatory approval, (vi) the Company's ability to enter into new arrangements with corporate partners and (vii) such other factors as may be disclosed from time-to-time in the Company's reports as filed with the Securities and Exchange Commission.

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