Potentia Pharmaceuticals Announces Initiation of Phase I Clinical Trials to Evaluate its Lead Compound for Age-Related Macular Degeneration

Potentia Pharmaceuticals Announces Initiation of Phase I Clinical Trials to Evaluate its Lead Compound for Age-Related Macular Degeneration

March 20, 2007

-- POT-4 is the First Complement Inhibitor for Age-related
Macular Degeneration to Enter Clinical Phase of
Development


    LOUISVILLE, Ky., March 20 /Xinhua-PRNewswire/ -- 

    Potentia Pharmaceuticals, Inc. announced today that it
is entering the clinical phase of development for POT-4,
its lead drug candidate for the treatment of age-related
macular degeneration (AMD).  POT-4 is a complement
inhibitor, which shuts down the complement activation
system that could lead to local inflammation, tissue damage
and upregulation of angiogenic factors such as vascular
endothelial growth factor (VEGF).

    Four landmark studies published in April 2005
demonstrated a genetic link between the complement system
and AMD, providing evidence that complement activation
plays a significant role in the cause of the disease.  Less
than two years after the publication of the studies, POT-4
will be the first complement inhibitor tested in patients
with AMD. 

    "These recent data have sparked hope that AMD can
be treated with complement inhibitors, which help treat the
early stages of the disease. We are hopeful that POT-4 may
represent a new therapeutic option for patients with dry
and wet forms of the disease," said Cedric Francois,
M.D., Ph.D., Potentia's President and CEO.

    AMD is the leading cause of blindness in the elderly of
the western world and affects more than 10 million patients
in the United States alone.  The current standard of care
for AMD relies primarily on angiogenesis inhibitors, an
approach geared towards the approximately 10-15% of AMD
patients with complications resulting from ocular
angiogenesis (growth of new blood vessels and bleeding in
the back of the eye).  No drug currently on the market has
been approved for the treatment of the remaining patients,
who suffer from the so-called "dry" form of the
disease.  

    About the Complement System and POT-4

    Complement activation is an inflammatory process
involving dozens of plasma proteins, ultimately leading to
cell membrane disruption through the membrane attack
complex. Activation of the complement system is an
important part of the body's defensive immune response
against pathogens such as bacteria and viruses. In spite of
its defensive function, inappropriate or excessive
complement activation can have pathological consequences.
Multiple studies published over the past 2 years have
strongly linked the complement system to the pathology of
AMD.

    POT-4 is a synthetic peptide discovered by Professor
John Lambris at the University of Pennsylvania. It binds
tightly to complement component C3, preventing its
participation in the complement activation cascade. As C3
is the central component of all major complement activation
pathways, its inhibition effectively shuts down all
downstream complement activation that could otherwise lead
to local inflammation, tissue damage and upregulation of
angiogenic factors such as vascular endothelial growth
factor.

    About Age-Related Macular Degeneration

    AMD is the progressive deterioration of the critical
central region of the retina called the macula. This
disorder leads to irreversible loss of central vision. More
than 25 million patients worldwide suffer from AMD,
including roughly one-quarter of those 70 years and older.
Ten to fifteen percent of patients with AMD develop a
complication in which leaky blood vessels grow into the
retina. This form of the disease is referred to as
`neovascular' or `wet' AMD, as opposed to `atrophic' or
`dry' AMD when this complication does not emerge.
Pharmacological treatments of AMD are primarily limited to
drugs that inhibit blood vessel growth and leakage and are
therefore approved for use only in patients with wet AMD.

    About Potentia's AMD Program

    With the ultimate goal of making AMD a preventable
disease, Potentia's AMD program focuses on developing new
therapies that target AMD early in the disease process.
Potentia's AMD pipeline includes POT-4 formulated to
protect patients from the disease for prolonged periods of
time after each treatment. 

    About Potentia Pharmaceuticals, Inc.

    Potentia Pharmaceuticals, Inc. (
http://www.potentiapharma.com ) is a privately held,
biotechnology company based in Louisville, KY. Together
with its corporate and academic partners, Potentia is
developing new approaches to the treatment of
complement-related inflammatory diseases such as AMD.

    This press release contains "forward-looking
statements" regarding the potential therapeutic
benefits and progress of Potentia's research and
development programs. These statements are hereby
identified as "forward-looking statements".
Forward-looking statements include statements regarding
Potentia's expectations, beliefs, intentions or strategies
regarding the future and include statements containing
forward-looking words such as "anticipate,"
"believe," "could,"
"estimate," "expect,"
"intend," "may," "should,"
"will," and "would" or similar words.
Such statements are based on our management's current
expectations and involve risks and uncertainties. Actual
results and performance could differ materially from those
projected in the forward looking statements as a result of
many factors, including, without limitation, uncertainties
relating to drug discovery; formulation development;
clinical development processes; enrollment rates for
patients in our clinical trials; changes in relationships
with strategic partners and dependence upon strategic
partners for the performance of certain activities under
collaborative agreements; the impact of competitive
products and technological changes; uncertainties relating
to patent protection and uncertainties relating to our
ability to obtain funding. Potentia disclaims any intent or
obligation to update this press release or forward-looking
statements contained therein.

    Our logo, trademarks, and service marks are the
property of Potentia Pharmaceuticals, Inc. All other trade
names, trademarks, or service marks are property of their
respective owners.


    For more information, please contact:

     Pascal Deschatelets
     Potentia Pharmaceuticals, Inc.
     Tel:   [phone]
     Email: [e-mail]