PhytoMedical's Ongoing Diabetes Research Validated By New Study.

PRINCETON, N.J. -- New study provides further evidence of the beneficial effects and biochemical actions of certain compounds in cinnamon that improve insulin function and lower risk factors for diabetes and cardiovascular disease.

PhytoMedical Technologies, Inc. (OTCBB: PYTO) (FWB: ET6)

today announced a new study presented at Experimental Biology 2006 provided further new evidence of the beneficial effects and biochemical actions of certain compounds in cinnamon that improve insulin function, lower blood sugar levels and triglycerides (fatty acids in blood), and also act as anti-inflammatory agents, which may be useful in preventing or mitigating arthritis, allergies as well as other inflammatory diseases such as cardiovascular diseases.

This new study, presented by PhytoMedical collaborating scientist, Dr. Heping Cao, of the Beltsville Human Nutrition Research Center, United States Department of Agriculture, involved the investigation of the biochemical basis for the insulin-like effects of certain bioactive compounds in cinnamon. Results showed that these compounds, like insulin, increase the amount of three critically important proteins involved in the body's insulin signaling, glucose transport, and inflammatory responses.

"The study provides new biochemical evidence for the beneficial effects of cinnamon in potentiating insulin action and suggests anti-inflammatory properties for the antioxidants in cinnamon," states Dr. Cao. Other researchers involved in the study are Drs. Richard A. Anderson and Marilyn M. Polansky, of the Beltsville Human Nutrition Research Center, and Dr. Perry J. Blackshear of the National Institute of Environmental Health Sciences, Research Triangle Park, North Carolina.

Through a collaborative research and development agreement, PhytoMedical is in the process of synthesizing the bio-active components found in cinnamon bark that increase insulin sensitivity by activating key enzymes that stimulate insulin receptors, while inhibiting the enzymes that deactivate them. A widely followed study published in Diabetes Care showed that as little as one gram a day of cinnamon in capsule form -- one-fourth of a teaspoon twice a day -- can lower blood sugar by an average of 18 to 29 percent, triglycerides (fatty acids in the blood) by 23 to 30 percent, LDL (or "bad") cholesterol by 7 to 27 percent and total cholesterol by 12 to 26 percent.

Because cinnamon is not water soluble and contains certain harmful substances, ingesting large amounts of cinnamon over long periods may be toxic. In response, PhytoMedical is working to produce a safe, pharmacologically approved, synthetic compound that could be easily taken as a pill, or added to soft drinks or other liquids, with the end result being lower blood sugar levels through more efficient use of insulin.

About PhytoMedical Technologies, Inc.

PhytoMedical Technologies, Inc. (OTCBB: PYTO) (Frankfurt Stock Exchange: ET6), together with its wholly owned subsidiaries, is an early stage research based biopharmaceutical company focused on the identification, acquisition, development and eventual commercialization of innovative plant derived pharmaceutical and nutraceutical compounds targeting cachexia, obesity and diabetes.

An estimated 300 new drugs of world-wide importance, worth over $150 billion, still remain to be discovered amongst the 250,000 species of higher plants found on earth, of which less than 15% have been investigated for bioactive compounds. Presently, twenty of the best selling drugs come from natural sources and 25% of all prescription drugs contain active compounds originally derived from or patterned after compounds derived from plants.

BDC-03 Successful in Increasing Lean Muscle Mass and Reducing Body Fat Percentage

Named BDC-03, PhytoMedical's first plant derived compound has pharmacologically active elements that have been successful in reducing body fat percentage, increasing lean muscle mass and lowering cholesterol in studies of growing animals.

For obese or overweight individuals, BDC-03's potential capacity to decrease the deposition of fat and lower cholesterol would be a vitally important therapeutic outcome. However, its prospective ability to induce overall weight gain in the form of lean muscle mass may well be the difference between life and death for individuals suffering from cachexia.

Cachexia, which is characterized by dramatic weight loss, not only of fatty tissue, but also muscle tissue and bone, is among the most devastating and life-threatening aspects of AIDS and cancer. Once the body loses 30% of its lean muscle mass, major organs are affected, resulting in death.

Sadly, cachexia afflicts 25% of all AIDS patients and upwards of 90% of all advanced cancer patients. In fact, half of all cancer related deaths are a result of cachexia, not the cancer itself.

Polyphenolic Compounds Increase Sugar Metabolism by a Factor of 20

Diabetes, which results from the body's inability to produce enough insulin or use it efficiently, affects 18.2 million people in the United States, or 6.3% of the population (American Diabetes Association). The Centers for Disease Control and Prevention expects this number to rise to over 30 million by 2030. As the leading cause of end-stage renal disease, blindness and lower limb amputations, diabetes now costs the health care system over $132 billion each year -- nearly one out of every ten health care dollars spent in the United States.

While the causes of diabetes are not entirely clear, it is known that diet plays a key role in the prevention and cure of diabetes. In fact, research studies have shown that aqueous extracts of the most commonly consumed spice, cinnamon, improves the action of insulin and helps to control risk factors associated with diabetes including, glucose, insulin, cholesterol, triglycerides and related variables.

A study published in Diabetes Care, a journal of the American Diabetes Association, showed that as little as one gram a day of cinnamon -- one-fourth of a teaspoon twice a day -- can lower blood sugar by an average of 18 to 29 percent, triglycerides (fatty acids in the blood) by 23 to 30 percent, LDL (or "bad") cholesterol by 7 to 27 percent and total cholesterol by 12 to 26 percent. Changes in HDL ("good") cholesterol were not significant. Amazingly, the study found that the beneficial effects of cinnamon lasted for at least 20 days after people stopped taking it.

Through a Cooperative Research and Development Agreement, PhytoMedical is working towards synthesizing the active components found in cinnamon and characterizing their beneficial health effects in cell cultures systems, animals and ultimately humans.

At present, the Company does not currently have commercial products intended to diagnose, treat, cure or prevent any disease. The statements contained in this press release regarding our ongoing research and development and the results attained by us to-date have not been evaluated by the Food and Drug Administration.

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