Charlottesville, VA — July 1, 2005 — Diffusion Pharmaceuticals LLC, a drug discovery and development company pioneering a revolutionary mechanism of action to treat life-threatening diseases, today announced the completion of its laboratory and research capabilities expansion. Since June, the company has added three people to oversee activities in its laboratories: Dr. John Gainer, company co-founder and inventor of the company’s family of novel molecules; Dr. Robert Murray and Edward John.

Dr. Gainer retired from the University of Virginia in June after serving as a Professor of Chemical Engineering from 1966-2005. He has authored more than 100 scientific journal articles and has spent more than 3 decades investigating the transport properties of small molecules in biological systems.

Dr. Gainer has received numerous teaching awards, including the University of Virginia Alumni Association’s Distinguished Professor Award and the Outstanding Teacher Award from the Southeastern Section of the American Society for Engineering Education.

During Dr. Gainer’s tenure at UVA, he directed many graduate projects and dissertations, including that of Dr. Robert Murray, Diffusion’s newly hired Research Projects Manager. As the Company’s Chief Scientific Advisor, Dr. Gainer consults on all scientific research activities, with a focus on development of the Company’s pipeline drugs.

“As the inventor of the Company’s trans bipolar carotenoid family of molecules, Dr. Gainer plays a critical role in charting the path of development and commercialization of our drugs,” said David G. Kalergis, JD/MBA, Diffusion’s Chief Executive Officer. “His extensive knowledge of these drugs’ mechanism of action and their properties is one of the most valuable resources we have,” he continued.

Newly hired Dr. Robert Murray obtained his PhD in Chemical Engineering from the University of Virginia and his BS (Magna Cum Laude) and MS both in Chemical Engineering from Drexel University in 1999 and 2001, respectively. His thesis titled, “Pharmacokinetics of Trans Sodium Crocetinate and the Treatment of Two Hypoxic States: Hemorrhagic Shock and Acute Lung Injury” highlights his depth of knowledge of the company’s lead drug candidate, TSC. As Research Project Manager, Dr. Murray is responsible for the operation of the company’s internal laboratory and performing exploratory work with the company’s technology.

Mr. Edward John has joined the company as Diffusion’s Senior Laboratory Technician. He received his MS in Biology/Genetics from Old Dominion University in Norfolk, Virginia in 1983, and his BS in Biology from Hampden-Sydney College in Hampden Sydney, Virginia in 1980. Prior to joining Diffusion Pharmaceuticals, Mr. John worked for the University of Virginia for more than 20 years, most recently as a Senior Laboratory Specialist in the Department of Cardiovascular Medicine. Mr. John is responsible for managing one of the company’s internal laboratories and, in collaboration with Drs. Gainer and Murray, will carry out various experiments to explore the capabilities and qualities of the company’s proprietary molecules.

“The talent of these exceptional scientists and our enhanced facilities will enable us to perform more research internally rather than outsourcing all of our studies, which will accelerate our drug development programs and advance our pipeline molecules,” said Kalergis.

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.