SOURCE: Health Discovery Corporation

March 09, 2005 09:40 ET

Health Discovery Corporation Announces Completion of Private Placement in Excess of $2.5 Million

SAVANNAH, GA -- (MARKET WIRE) -- March 9, 2005 -- Health Discovery Corporation (OTC BB: HDVY), a leading provider of "First-Phase" Biomarker Discovery providing pharmaceutical and diagnostic companies worldwide with newly discovered biomarkers used to create more accurate diagnostic tests, novel drug targets for more personalized medicines and new methods for detecting patients "at-risk" for toxicity-related drug events, thereby providing safer medications, announced today that it has raised over $2.5 million of equity capital in a private placement of unregistered common stock and associated warrants to acquire shares of common stock.

Health Discovery Corporation increased the original $2 million offering to accommodate the interest of a group of significant institutional investors.

The proceeds of this funding will enable Health Discovery Corporation to take the next step toward commercialization in four promising areas of unmet medical need:

--  Begin the clinical validation phase of the newly discovered, patent
    protected biomarkers for clinically significant prostate cancer and BPH
    (Benign Prostatic Hyperplasia) at MD Anderson Cancer Center in our effort
    to find a replacement biomarker for PSA (Prostate Specific Antigen) for the
    early detection of clinically significant prostate cancer;
    
--  Complete our image analysis product for detecting circulating tumor
    cells in the blood;
    
--  Begin the clinical validation of our newly discovered, patent
    protected biomarkers for aggressive AML (Acute Myelocytic Leukemia) at MD
    Anderson Cancer Center and
    
--  Initiate our program for detecting patients "at-risk" for toxicity-
    related drug events, thereby providing safer medications for pharmaceutical
    companies worldwide.
    
Stephen D. Barnhill, M.D., Chairman and CEO of Health Discovery Corporation, stated, "We are extremely pleased to have secured the necessary financing to move from the research and discovery phase to the validation and commercialization phase of our newly discovered biomarkers." Dr. Barnhill continued, "This round of financing is a key ingredient to the successful implementation of the company's business plan and we are proud and honored to have the support and confidence of both individual and institutional investors in this funding round."

Health Discovery Corporation is a systems biology-oriented biomarker and pathway discovery company, which provides all aspects of First-Phase Biomarker Discovery(SM). The Company was established to provide pharmaceutical and diagnostic companies worldwide with newly discovered biomarkers used to create more accurate diagnostic tests, novel drug targets for more personalized medicines and new methods for detecting patients "at-risk" for toxicity-related events, thereby providing safer medications. Founded in September 2003, the Company is headquartered in Savannah, GA. For more information contact: Stephen D. Barnhill, M.D. of Health Discovery Corporation, 1-800-965-3198 or sbarnhill@healthdiscovercorp.com.

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Acts of 1933 and Section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.

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