CHARLOTTESVILLE, VA – February 2, 2007 – Diffusion Pharmaceuticals LLC, a drug discovery and development company pioneering a revolutionary approach to treat life-threatening diseases, today announced that it has received a $0.5 million grant (N00014-07-C-0424) from the Office of Naval Research (ONR). The funds will be used to support the transition of the company’s lead novel small-molecule drug, trans sodium crocetinate (TSC), into human testing planned to begin in March 2007.

“ONR’s continued support for the transition of TSC into human testing is a tremendous help in directing the use of the drug toward unmet medical needs,” says David G. Kalergis, Diffusion’s Chief Executive Officer. “Our work to develop TSC as a potential hemorrhagic shock treatment is directly applicable to potential uses of the drug in life-threatening conditions such as cardiovascular diseases, respiratory disorders and stroke,” he continues.

Diffusion is currently coordinating with the U.S. Food and Drug Administration (FDA) on its plan to begin human trials in the first quarter of 2007. ONR’s financial commitment of $2.6 million to date, along with $5.6 million in private equity the company has raised, has enabled Diffusion to advance to its current stage. To supplement this ONR grant, the company will be raising additional private equity, which will also be used to support the clinical development of TSC.

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 approach to increase oxygen diffusion into tissue cells, Diffusion’s lead molecule trans sodium crocetinate (TSC) and other proprietary pipeline molecules could be used to treat life-threatening conditions, such as trauma, stroke, cardiovascular diseases, respiratory disorders, 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 for early 2007 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.