SOURCE: Lipid Sciences, Inc.

April 16, 2007 08:30 ET

Lipid Sciences Licenses Unique Assay Technology From The Children's Hospital of Philadelphia

Will Be Used to Accelerate Company's HDL Mimetic Peptide Development Program; Cell Efflux Data Highlighted at CRT 2007

PLEASANTON, CA -- (MARKET WIRE) -- April 16, 2007 -- Lipid Sciences, Inc. (NASDAQ: LIPD) announced that the Company has entered into an agreement to license a unique in vitro assay technology from The Children's Hospital of Philadelphia. The agreement is for a period of one year and can be renewed for one year increments thereafter. The License Agreement covers intellectual property described in the patent, "Cell Culture System for Determining the Cholesterol Efflux Potential for Serum." The inventor on the patent is George H. Rothblat, Ph.D., Department of Pediatrics, The Joseph Stokes, Jr., Research Institute, The Children's Hospital of Philadelphia.

Dr. Rothblat's research focuses on the role played by cholesterol within individual cells. His work examines the mechanisms by which cholesterol molecules move in and out of cells when exposed to HDL, and the flux of cholesterol between cells and serum lipoproteins, in particular, HDL. Dr. Rothblat has collaborated with Lipid Sciences in the past. He previously assessed the ability of plasma treated by Lipid Sciences' Selective Delipidation process to remove cholesterol from cells. His studies showed for the first time a dramatic increase in the plasma's ability to efflux cholesterol via the metabolic pathway (ABCA1 transporter) -- known to be optimal for removing cholesterol from arterial plaque via the reverse cholesterol transport mechanism. This demonstrated that the Selective Delipidation process has broad-reaching implications for HDL Therapy as a novel treatment for cardiovascular disease, particularly in Acute Coronary Syndrome (ACS) patients.

New data validating Lipid Sciences' HDL Selective Delipidation process were recently presented at CRT 2007 and included assessments by Dr. Rothblat. The delipidated plasma was shown to contain approximately 28 times more pre-beta HDL than undelipidated plasma. The delipidated HDL was also shown to be significantly more effective in removing cholesterol from cells than the undelipidated plasma, and even exceeded the efflux capability of apolipoprotein A-I, thus enhancing reverse cholesterol transport.

Lipid Sciences is also developing the next generation of HDL therapy in its HDL Mimetic Peptide program. The target market for this therapy is also the ACS patient. This program focuses on developing proprietary peptides that mimic the critical functional characteristics of a key protein in HDL -- apolipoprotein A-I. These mimetic peptides could be used to create "synthetic" HDL for administration as a drug therapy to both enhance reverse cholesterol transport and reduce inflammation associated with atherosclerotic plaque.

Dr. H. Bryan Brewer, Lipid Sciences' Chief Scientific Director and the architect of the HDL Mimetic Peptide program, commented on this licensing agreement, "Bringing this important innovative assay technology in-house will be an efficient and cost-effective way to accelerate the development of our HDL Mimetic Peptide program by employing techniques to efficiently screen a number of individual peptide drug candidates, as well as combinations of peptides for basic cholesterol efflux capabilities. This is part of our strategy to develop the internal laboratory capability necessary to support our development plan for this critical program as well as HDL Selective Delipidation."

Lipid Sciences, Inc. is a development-stage biotechnology company engaged in the research and development of products and processes intended to treat major medical indications, in which lipids, or fat components, play a key role. The Company's HDL Therapy platform (HDL Selective Delipidation and HDL Mimetic Peptides) aims to develop treatments to reverse atherosclerosis, a systemic disease of the blood vessels caused by the build-up of cholesterol-filled plaques in the vascular system and, most critically, in the coronary arteries. Regression of such plaques may have a major impact on reducing the risk of acute coronary events. The Company's Viral Immunotherapy platform focuses on the removal of the lipid coatings from lipid-enveloped viruses and other lipid-containing infectious agents by applying Lipid Sciences' proprietary delipidation technologies. The Company believes that removing the virus' protective lipid coating enhances the processing and presentation of viral proteins to stimulate the body's immune system to effectively fight the disease. Conditions that could potentially be impacted by these technologies include HIV, Hepatitis B and Hepatitis C, West Nile, SARS, influenza, and a broad range of animal health applications.

Forward-Looking Statements: This release contains forward-looking statements concerning plans, objectives, goals, strategies, study results, anticipations, expectations, future events or performance as well as all other statements that are not statements of historical fact. The forward-looking statements contained in this release reflect our current beliefs and expectations on the date of this release. Actual results, performance or outcomes may differ materially from what is expressed in the forward-looking statements. Readers are referred to the documents filed by us with the SEC, specifically the most recent reports on Form 10-K and Form 10-Q which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. In addition to those risk factors, other factors that could cause actual results to differ materially include the following: Our inability to obtain adequate funds; the significant losses we have incurred to date, and our expectation that we will incur substantial losses in the future; the failure of our technology to prove safe or effective; our inability to obtain regulatory approval for our technology, which is only in the clinical development stage; delay or failure to complete clinical studies; our dependence on our license agreement with Aruba International B.V.; our reliance on collaborations with strategic partners and consultants; competition in our industry, including the development of new products by others that may provide alternative or better therapies; failure to secure and enforce our intellectual property rights; risks associated with use of biological and hazardous materials; acceptance of our potential products by healthcare providers and patients; our exposure to product liability claims; and our dependence on key personnel.

This release should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent reports on Form 10-K and Form 10-Q. Copies are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at Lipid Sciences assumes no obligation to update the forward-looking statements included in this document.

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    Lipid Sciences, Inc.
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