Charlottesville, VA — October 22, 2004 — Diffusion Pharmaceuticals LLC, an early-stage pharmaceutical company which discovers and develops novel small-molecule therapeutics, today announced its selection as one of ten finalists to present at the 2nd annual Virginia’s Technology Capital Access Forum (VTCAF) on Thursday, October 28, 2004, in Roanoke, Virginia. The two-day event at the Hotel Roanoke and Conference Center is co-hosted by Virginia Tech and the New Century Technology Council (NCTC). Diffusion Pharmaceuticals also announced the addition of Ben Shealy, CFA/MBA, as its Chief Financial Officer.

As a presenting company at the VTCAF, Diffusion will highlight its breakthrough technology to treat serious unmet medical needs affecting millions of patients suffering from conditions related to oxygen deficiencies. The company with the best business plan and presentation will receive a first place prize of $10,000. More information about the VTCAF conference, including registration details, can be found at www.capitalaccessforum.com.

“Since February 2004, the Company has raised $4.3 million in private equity and government R&D funding commitments, and we are now considering a first institutional financing round,” said David Kalergis, JD/MBA, Diffusion’s Chief Executive Officer. “We believe our strategy of core private equity investment, coupled with non-dilutive government funding and the formation of alliances with major companies, will accelerate development of our novel life-saving technology and maximize value creation for the benefit of our investors,” he continued.

Diffusion’s lead compound, trans sodium crocetinate (TSC) is currently in the late pre-clinical stage of development to treat hemorrhagic shock, with human testing targeted to begin in late 2005. This program is financed by a multi-million dollar military R & D commitment to develop a breakthrough life-saving treatment for wounded warfighters while they are still on the battlefield. TSC and the other novel molecules in Diffusion’s pipeline are also planned for testing against stroke, heart attack, congestive heart failure, respiratory disorders, and other serious, life-threatening conditions. If one or more of Diffusion’s novel molecules were to be approved by the United States Food and Drug Administration they could be used by more than 30 million patients a year in the U.S. alone, with an overall market potential well into the billions of dollars annually.

Diffusion Pharmaceuticals also announced that Ben Shealy, CFA/MBA, has joined the company as its Chief Financial Officer. Mr. Shealy has over twenty years of experience in financial management and in private and public corporate financings. As CFO of Diffusion, Mr. Shealy has responsibility for implementing the Company’s overall financial strategy and directing the performance of day-to-day operational finance matters. Prior to working with Diffusion, Mr. Shealy was Vice President of Finance at Corporate Software where he directed M&A activities which involved overseeing the firm’s $100+ million investment in several start-up high technology companies, and the sale of Corporate Software to Level 3 Communications. Mr. Shealy also was responsible for Corporate Software’s financial planning and analysis functions, as well as its corporate budgeting activity which supported $1.2 billion of world-wide sales. Mr. Shealy’s Wall Street background encompassed both the sell-side (at Donaldson, Lufkin & Jenrette and Prudential Securities) and the buy-side (at John Hancock). Mr. Shealy received a BS in Accounting from San Jose State University, an MBA in Finance from Columbia University in New York City, and is a CFA Charter holder.

About Diffusion Pharmaceuticals
Diffusion Pharmaceuticals LLC is a drug discovery and development company that owns a platform technology of patented small molecules which treat serious medical conditions by increasing tissue oxygenation. Human clinical trials for the Company’s lead molecule trans sodium crocetinate (TSC) are targeted for 2005 for treatment of hemorrhagic shock. The company’s pipeline drugs, known as trans bipolar carotenoid or TBC molecules, are currently in the pre-clinical stage in laboratories across the country for the treatment of severe blood loss, brain trauma, ischemic stroke, myocardial infarction, and other conditions characterized by oxygen deprivation at the cellular level. Diffusion Pharmaceuticals, which is privately held, is located in Charlottesville, Virginia, an emerging biotech and drug development center. For more, visit www.diffusionpharma.com.