Mitsui & Co. Global Investment (MGI) - Venture Capital, Start-Up

NEWS 2008

[01/08/2008]

DiObex, Inc. Awarded Patent for the Prevention of Insulin-Induced Hypoglycemia

Patent Protects Very Low Dose Glucagon ahead of Phase 2 Clinical Trials in 2008 San Francisco, CA - January 8, 2008

DiObex, Inc., a privately held biotechnology company developing treatments for metabolic diseases, announced today that it has secured a critical patent from the U.S. Patent and Trademark Office for the use of very low dose glucagon, or DIO-901, in the prevention of insulin-induced hypoglycemia in diabetes patients. The patent grants DiObex exclusive rights to methods of reducing the risk of hypoglycemia in diabetes patients being treated with insulin by administering very low doses of glucagon.

"This patent protection strengthens our commitment to delivering the first product to the market for the prevention of insulin-induced hypoglycemia in diabetes," CEO David Cory said. "DIO-901 is the only therapeutic in development to prevent insulin-induced hypoglycemia, which is known to limit optimal control and cause recurring medical complications in most people with type 1 diabetes, in many with type 2 diabetes, and is sometimes fatal."

Insulin-induced hypoglycemia is the limiting factor in the glycemic management of diabetes. Were it not for the barrier of hypoglycemia, people with diabetes might achieve normal HbA1c levels over a lifetime of diabetes. Reduction of mean glycemia over time prevents or delays microvascular complications-etinopathy, nephropathy, and neuropathy-in both type 1 and type 2 diabetes. DIO-901 is expected to begin Phase 2 clinical testing later this year and has received Fast Track status from the Food and Drug Administration, underscoring the great unmet medical need in the prevention of insulin-induced hypoglycemia.

DiObex's latest patent, U.S. Patent No. 7,314,859, builds on a growing patent portfolio protecting its product candidates for metabolic diseases. In addition to the recently issued U.S. patent, DiObex owns seven U.S. patent applications and 30 corresponding foreign patent applications relating to DIO-901. DiObex also owns or has exclusively licensed seven U.S. patents, five U.S. patent applications, and more than 100 issued foreign patents and pending foreign and international patent applications relating to DIO-902.

About DiObex

DiObex, Inc. is a San Francisco-based biopharmaceutical company founded to develop novel products for the treatment of metabolic diseases. DiObex has two products preparing to enter Phase 2b clinical development. DIO-901 is a formulation of Very Low Dose Glucagon (VLD Glucagon) for reducing or preventing insulin induced hypoglycemia. DIO-901 has received Fast Track status from the Food and Drug Administration. DIO-902 is a single enantiomer of ketoconazole and is a novel cortisol synthesis inhibitor. Abnormalities in cortisol activity may play an important role in the development of metabolic syndrome, a constellation of conditions that place people at high risk for type-2 diabetes and cardiovascular disease. For more information, visit www.diobex.com.

Contact:

Keith Vendola
DiObex
(415) 551-4115
keith@diobex.com