BOTHELL, Wash.--(BUSINESS WIRE)--Aug. 19, 2008--MDRNA, Inc. (Nasdaq: MRNA) announced today that it has signed an exclusive license agreement to intellectual property from the University of Michigan covering cationic peptides for enhanced delivery of nucleic acids. Terms of the agreement were not disclosed.

"The University of Michigan peptides have unique characteristics that we believe play an important role in improving the efficacy of delivery of RNAi-based therapeutics," stated Michael Houston, Ph.D., Vice President of Chemistry and Formulations. "These cationic peptides have the potential of being critical components of RNAi-based therapeutic formulations. We are currently using these peptides to create siRNA nanoparticles to enhance gene expression knockdown. Together with the DiLA(2) Platform of novel delivery lipids, these delivery peptides improve the therapeutic potential of our drug candidates."

The small cationic peptides covered by the University of Michigan intellectual property are capable of forming stable siRNA nanoparticle complexes, thereby protecting the siRNA while increasing the efficiency and efficacy of the formulations. In addition, they can also enhance endosomal release, an important step in delivering siRNAs to their site of action inside cells. Results to date have demonstrated both enhanced knockdown of target proteins in vivo as well as improvement in delivery efficiency.

About the DiLA(2) Platform

The DiLA(2) Platform is MDRNA's proprietary platform for creating novel lipids from amino acids. The platform enables MDRNA to tailor the charge, linker and acyl chains such that the properties of the liposome are optimized for delivery to the target tissue of interest. In addition, the platform is amenable to attachment of various peptides to improve a variety of delivery characteristics including nanoparticle formulation, cellular uptake, endosomal release and cell/tissue targeting.

About MDRNA, Inc.

MDRNA is a biotechnology company focused on the development and commercialization of therapeutic products based on RNA interference (RNAi). Our goal is to improve human health through the development of RNAi-based compounds and drug delivery technologies that together provide superior therapeutic options for patients. Over the past decade, we have developed substantial capabilities in molecular biology, cellular biology, lipid chemistry, peptide chemistry, pharmacology and bioinformatics, which we are applying to a wide range of RNAi technologies and delivery approaches. These capabilities plus the in-licensing of key RNAi-related intellectual property have rapidly enabled us to become a leading RNAi-based therapeutics company with a pre-clinical pipeline in key therapeutic areas including oncology, metabolic disorders and inflammation. Through our capabilities, expertise and know-how, we are incorporating multiple RNAi technologies as well as peptide- and lipid-based delivery approaches into a single integrated drug discovery platform that will be the engine for our clinical pipeline as well as a versatile platform for establishing broad therapeutic partnerships with biotechnology and pharmaceutical companies. We are also investing in new technologies that we expect to lead to safer and more effective RNAi-based therapeutics while aggressively building upon our broad and extensive intellectual property estate. By combining broad expertise in siRNA science with proven delivery platforms and a strong IP position, MDRNA is well positioned as a leading RNAi-based drug discovery and development company. Additional information about MDRNA, Inc. is available at http://www.mdrnainc.com.

MDRNA Forward-Looking Statement

Statements made in this news release may be forward-looking statements within the meaning of Federal Securities laws that are subject to certain risks and uncertainties and involve factors that may cause actual results to differ materially from those projected or suggested. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to: (i) the ability of MDRNA or a subsidiary to obtain additional funding; (ii) the ability of MDRNA or a subsidiary to attract and/or maintain manufacturing, research, development and commercialization partners; (iii) the ability of MDRNA, a subsidiary and/or a partner to successfully complete product research and development, including preclinical and clinical studies and commercialization; (iv) the ability of MDRNA, a subsidiary and/or a partner to obtain required governmental approvals; and (v) the ability of MDRNA, a subsidiary and/or a partner to develop and commercialize products that can compete favorably with those of competitors. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in MDRNA's most recent periodic reports on Form 10-K and Form 10-Q that are filed with the Securities and Exchange Commission. MDRNA assumes no obligation to update and supplement forward-looking statements because of subsequent events.