Charlottesville, VA — December 5, 2005 — Diffusion Pharmaceuticals LLC, a drug discovery and development company pioneering a revolutionary mechanism of action to treat life-threatening diseases, today announced that it has completed a $1.35 million private equity round. Proceeds will be used to transition trans sodium crocetinate (TSC), the company’s lead compound, to the clinical stage in 2006. LeClair Ryan served as legal counsel to the company for this offering.

“This private equity round continues our strategy of financing the company through a mix of government funding and private capital,” said David G. Kalergis, JD/MBA, Diffusion’s Chief Executive Officer. “This is possible because the uniqueness of our technology drives both government and private interest in investing in potential breakthrough medical treatments,” he continued.

About Diffusion Pharmaceuticals LLC
Diffusion Pharmaceuticals LLC is a drug discovery and development company that owns a platform technology of patented small molecule therapeutics that enhance the diffusion of oxygen to hypoxic (oxygen-starved) tissues. By applying a revolutionary mechanism to increase oxygen diffusion into tissue cells, Diffusion’s lead molecule trans sodium crocetinate (TSC) treats life-threatening conditions, such as trauma, stroke, cardiovascular, respiratory, and other conditions characterized by oxygen deprivation at the cellular level. The company’s pipeline drugs, known as trans bipolar carotenoid or TBC molecules, are currently in the preclinical stage. Clinical trials are planned to begin in 2006 to support the use of TSC in ischemic indications. Diffusion Pharmaceuticals, which is privately held, is located in Charlottesville, Virginia. For more information, visit www.diffusionpharma.com.