Nanotechnology Now - Press Release: NanoBio® Completes Successful Phase 2 Herpes Trial

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NanoBio® Completes Successful Phase 2 Herpes Trial, Prepares for Phase 3 Studies

Ann Arbor, MI | July 22, 2005

NanoBio Corporation, announced today that it has successfully completed its Phase 2 study of NB-001 in patients with herpes labialis (cold sores) and is moving ahead with plans to conduct Phase 3 clinical trials next year. NB-001 is a topical emulsion comprised of nanometer-size water/oil droplets coated with a surfactant that has demonstrated potent anti-viral, anti-bacterial and anti-fungal activity in previous studies. These uniformly small antimicrobial particles are designed to accelerate the healing of skin ulcers by killing the herpes viruses at the lesion site.

The multi-center Phase 2 study enrolled 332 patients with recurrent herpes labialis who were randomized to one of five ten-day treatment arms: no treatment, vehicle nanoemulsion, or one of three doses of active nanoemulsion. Patients who received the highest dose of NB-001 (0.1%) trended to show healing one day sooner than subjects in the control group. A significant proportion of subjects on the highest dose of NB-001 had healing two or more days earlier than the control group. There were no drug-related adverse events, reports of drug-induced skin irritation or drop-outs due to adverse events.

“With nearly 150 million outbreaks of herpes in the United States each year and the increasing concern for the potential of resistance to currently-available drug therapies, there is a growing need to develop more effective treatments for these infections,” said Michael J. Nestor, chief executive officer of NanoBio. “We believe our findings demonstrate a clinically significant benefit from the highest dose of NB-001 and, therefore, provide the basis for conducting pivotal Phase 3 studies next year.”

NanoBio's chief scientific officer, James Baker, Jr., M.D., commented, “These results clearly validate the premise of the nanoemulsion technology platform on which NanoBio's treatments are based. These findings support us in moving forward with proposed product treatments for a broad range of topical infectious diseases.”

NanoBio plans to present its Phase 2 findings along with its plans for Phase 3 studies to the U.S. Food and Drug Administration later this year.

About NanoBio Corporation:
NanoBio Corporation is a biopharmaceutical company developing and commercializing therapies based on proprietary nanoemulsion technology. This technology was developed at the University of Michigan Medical School. NanoBio, a privately held corporation, is the exclusive global licensee of this technology.

In addition to NB-001, clinical trials with NB-002, a proposed treatment for nail fungus (onychomycosis), are planned for the first quarter of 2006. Other products in the NanoBio product development pipeline include treatments for genital herpes, herpes zoster (shingles) and a broad spectrum vaginitis treatment. NanoBio also is conducting pre-clinical activity on nanoemulsion based vaccines. NanoBio believes that its proposed products could have important therapeutic, safety and cost advantages over currently available treatments.

For more information, please visit www.nanobio.com

Statements about NanoBio Corporation's future expectations, including proposed product development and regulatory plans, and all other statements in this document other than historical facts, are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. NanoBio intends that such forward-looking statements be subject to the safe harbors created thereby. NanoBio is not responsible for events not updated after the date on this press release.

Contact:
P.O. Box 8110
Ann Arbor, Michigan
48107
USA
734.302.4000
Fax: 734.302.9150

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