LeukoMed’s drug candidates target diseases representing major markets which are currently not adequately served. These include: - Rheumatoid Arthritis (RA) - Crohn's Disease - Psoriasis - Osteoarthritis (OA) - Asthma - AIDS - Cachexia associated with cancer, AIDS

LeukoMed’s lead compounds work through an entirely new mechanism of action that inhibits the production of the potent inflammatory cytokine TNF-alpha and certain of its related cytokine family members. This unique mechanism of action provides these compounds with safe, highly selective, yet very potent, anti-inflammatory activity which will be useful in targeting the wide variety of diseases in which TNF-alpha and its related family members play a role.

Chairman, Richard M. Mueller - former President & CEO, Macronex, Inc. - former senior executive, Glaxo, Inc. Chief Executive Officer, Julia Barnes Oliver - former senior executive, Glaxo-Wellcome - former senior executive, SAS

LeukoMed Announces Scientific Publication Demonstrating Activity of LMP-420 Against HIV and TB March 31, 2006 In studies published today in the scientific journal AIDS Research and Therapy (AIDS Res & Ther, 2006, 3:8), Haraguchi et al present data demonstrating that LMP-420, LeukoMed's lead TNF inhibitor, directly inhibits the replication of HIV-1 and virulent Mycobacterium tuberculosis in human peripheral blood cells or human lung cells, respectively. Furthermore, the studies presented demonstrate that LMP-420 can act synergistically with a proven anti-retroviral agent, AZT, to lower the required dose of AZT. This suggests that a small molecule, orally-active, TNF inhibitor such as LMP-420 might be used in developing countries to lower the required doses of anti-retroviral or anti-bacterial drugs used to treat HIV or TB and thus make treatments more readily available. LeukoMed is providing LMP-420 to scientific investigators to investigate the potential of combining LMP-420 with existing therapies to provide a more efficacious and cost-effective combination. LeukoMed is currently developing two lead drug candidates, LMP-160 and LMP 420. Both of these compounds are potent transcriptional inhibitors of the biosynthesis of tumor necrosis factor alpha (TNF-alpha) and, as such, are expected to be useful for the treatment of a number of diseases, including rheumatoid arthritis and osteoarthritis, Crohn’s disease, psoriasis, and asthma. In addition to these disease targets, TNF-alpha has been suggested to play a role in the development of insulin resistance in diabetes associated with obesity and thus LeukoMed’s lead compounds may have a role in this disease indication as well. LeukoMed’s LMP-160 and LMP-420 block TNF-alpha biosynthesis through inhibition of a unique cellular target. LeukoMed’s development program for these candidates is being conducted in collaboration with a number of academic investigators. These unique compounds were identified using a novel, cell-based screening process based on human immune cells. These compounds are among the most potent and selective inhibitors of TNF-alpha that have been reported to date. Both LMP-160 and LMP-420 are expected to be available in oral, inhaled and topical formulations. LMP-420 is expected to enter clinical trials within the next eighteen months.

BIODEFENSE Since TNF-alpha is implicated in the mechanisms of pathogenesis associated with many biological agents, LeukoMed is exploring the potential utility of its small molecule TNF-alpha inhibitors as theraputics for use against a variety of such agents. The ability of LeukoMed's molecules to be readily and inexpensively synthesized, their excellent potency and selectivity, and their long-term stability make them excellent candidates for such use.