Ausam Biotechnologies Receives Contract Grant from National Institutes of Health; Grant Will...

Business Editors/Health/Medical Writers

SANTA MONICA, Calif.--(BUSINESS WIRE)--Feb. 24, 2004

AusAm Biotechnologies, Inc., a biopharmaceutical company in the business of developing new diagnostic and therapeutic products, announced today that the company has been awarded a contract

grant from the National Institutes of Health (NIH) Inter-Institute Program for the Development of AIDS-Related Therapeutics. AusAm will use the support to accelerate the development of DES10(TM), the company's proprietary topical microbicide, as a potentially safe and effective topical prophylactic ointment against HIV and other sexually transmitted diseases. In previous NIH sponsored studies, DES10 was shown to be an effective inhibitor of HIV and herpes.

Through this grant, AusAm Biotechnologies will collaborate with the NIH to determine the pre-clinical spectrum of antiviral activity for DES10, a member of a new class of drugs known as "attachment inhibitors" that prevent viruses such as HIV from infecting cells that make up the body's immune system.

"We look forward to building on our three-year-old collaboration with the NIH to move DES10 toward clinical trials," said James R. McCullough, Chief Executive Officer of AusAm Biotechnologies, Inc. "The development of DES10 as a safe, effective and inexpensive topical microbicide could give a powerful new tool in the fight to limit the spread of HIV and sexually transmitted diseases."

Microbicides are products such as gels and ointments that can be applied directly to the vagina or rectum as a means to block infectious disease. Unlike latex condoms, which are the most frequently used barrier method for HIV prevention, microbicides would be primarily controlled by women. Scientists are currently testing many substances to see whether they help protect against HIV and other STDs, but no microbicide for HIV is currently available on the market.

About AusAm Biotechnologies, Inc.

AusAm is a biotechnology research and development company commercializing both diagnostic and therapeutic products to identify and treat major diseases. AusAm's recently FDA-cleared diagnostic for the detection of intact albumin in urine is the first direct test to measure a potential indicator of the beginning stages of kidney disease. AusAm's diagnostic is currently offered by several reference laboratories and hospitals in the United States. For additional information, please contact AusAm at 310.260.9222 or email inquiries to info@ausambiotech.com.

Safe Harbor Statement

This press release contains forward-looking statements with respect to management's beliefs about the business of AusAm in the future. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to the ability of AusAm to successfully implement the strategy of AusAm. AusAm undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.