SOURCE: Lipid Sciences, Inc.

June 11, 2008 15:30 ET

Strategic Initiatives for the Coming Year Presented at Lipid Sciences' Annual Meeting of Stockholders

PLEASANTON, CA--(Marketwire - June 11, 2008) - Lipid Sciences, Inc. (NASDAQ: LIPD) -- In prepared remarks delivered at the Annual Meeting of Stockholders held today, President and Chief Executive Officer, S. Lewis Meyer, Ph.D., detailed the Company's accomplishments achieved during the past year and also outlined strategic initiatives for Lipid Sciences during 2009.

Dr. Meyer commented, "Lipid Sciences has clearly answered the principal, outstanding fundamental scientific and clinical questions pertaining to both our HDL Therapy and Viral Immunotherapy platforms during this past year. Our lead HDL Mimetic Peptide drug candidate, LSI-518P, has been validated by exhibiting the ability to mimic the key characteristics of HDL -- plaque regression and inflammation reduction. Our R & D investment focus is now to advance our mimetic peptide program into the clinic. The other component of our HDL Therapy platform -- HDL Selective Delipidation -- delivered very promising results as well. Our 'first-in-man' clinical trial demonstrated that our HDL Selective Delipidation therapy has the potential to reverse atherosclerosis. We intend to capitalize on this proof-of-concept data by aggressively pursuing a corporate partnership to advance this program toward commercialization."

In the second half of the presentation, Dr. Meyer noted recent study successes in both areas of the Company's Viral Immunotherapy program. "Lipid Sciences created a positive therapeutic effect with a proprietary delipidated, autologous viral vaccine in a non-human SIV-infected primate study. The animals in the treatment arm of this study responded to the vaccine with drops in viral load in excess of 90%. These results substantiated the belief that our Viral Immunotherapy platform has now shown great potential as both an effective therapeutic and preventive treatment for HIV. We will pursue grant funding from a variety of governmental and private sources to advance this HIV vaccine development program. During the past year, our animal health program advanced as well. We completed a proof-of-concept study in a targeted animal population, the first key milestone in a collaboration with Elanco Animal Health/Lilly, and we received a technology access fee as a result. We expect to expand the scope of our collaboration in the coming year."

Annual Meeting Report

A quorum was present at the meeting with approximately 77% of the shares outstanding represented in person or by proxy. The stockholders voted to re-elect Stephen E. Renneckar and Gary S. Roubin, M.D., Ph.D. as Class III Directors with terms to expire at the 2011 Annual Meeting. The stockholders also approved an amendment to the Company's Certificate of Incorporation increasing its authorized Common Stock from 75,000,000 to 125,000,000 shares and total authorized shares from 85,000,000 to 135,000,000.

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 Mimetic Peptides and HDL Selective Delipidation) aims to develop treatments to reverse atherosclerosis, a systemic disease 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, SARS, and influenza. In addition, Lipid Sciences believes that this Viral Immunotherapy platform also has applicability to a wide range of viruses impacting animal health -- a diverse market with diseases affecting both food and companion animals.

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 should refer 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; our technologies not proving to be safe or effective; our inability to obtain regulatory approval of our technologies, which are 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; our reliance on key suppliers to provide the material necessary to conduct successful pre-clinical and clinical studies; 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; 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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Contact Information

    Deborah S. Lorenz
    Vice President, Investor Relations and Corporate Communications
    Lipid Sciences, Inc.
    Email Contact