Aethlon Medical Releases Shareholder Letter.

SAN DIEGO -- Aethlon Medical, Inc. (OTCBB:AEMD) disclosed today that its Chairman and CEO, James A. Joyce, has issued the following letter to shareholders.

To our Shareholders:

Since my letter dated January 4, 2007, we have made significant progress in our mission to establish the industry for medical devices able to treat infectious disease. In this regard, I am pleased to inform you that researchers at The Centers for Disease Control and Prevention (CDC), The United States Army Medical Research Institute of Infectious Diseases (USAMRIID), and The Southwest Foundation for Biomedical Research (SFBR) have initiated studies of our Hemopurifier([R]) as a potential treatment countermeasure against Category "A" bioterror threats, including Ebola, Marburg, and Lassa Hemorrhagic Fever.

Studies of the Hemopurifier([R]) as a potential treatment for Dengue Hemorrhagic Fever (DHF) are also now under way at the National Institute of Virology (NIV) in India. The NIV is the Government of India's leading infectious disease research center and is a collaborating laboratory of the World Health Organization (WHO). With more than 50 million new cases each year, Dengue has evolved to be the second most prevalent infectious disease. Much like the Category "A" pathogens noted above, Dengue is untreatable with anti-viral drug or vaccine therapy. We are optimistic that each of these research initiatives will begin to provide supporting data that verifies the ability of the Hemopurifier([R]) to clear targeted viruses from blood. Such data for previously untreatable viral conditions should positively augment our regulatory submissions and reinforce the rationale for accelerating our science into marketplace.

In addition to initiating collaborations with researchers representing the United States and the Government of India, our team also submitted an Investigational Device Exemption (IDE) to the U.S. Food and Drug Administration (FDA) in early March. The IDE requests permission to initiate human safety studies of the Aethlon Hemopurifier([R])as broad-sprectrum treatment countermeasure against Category "A" bioterror threats resistant to drug and vaccine therapy. The demonstration of safety is a primary challenge in humans as efficacy studies of Category "A" pathogens are not possible for obvious humanitarian reasons. Category "A" threats are defined by the CDC as agents that pose a risk to national security; are easily disseminated or transmitted from person to person; result in high mortality rates; could cause public panic and social disruption, and require special action for public health preparedness.

Dr. Nathan Levin, a world-renown leader in renal care, and the Director of the Renal Research Institute (RRI) in New York City has agreed to be the Principal Investigator of the clinical program we have proposed to the FDA. The RRI is a joint venture between Fresenius Medical Care, the global leader in the dialysis industry and Beth Israel Medical Center. Pending internal review board approval, the proposed study will occur at Beth Israel Medical Center, also based in New York City.

In my last letter, I detailed a rationale for federal biodefense programs to shift focus towards broad-spectrum therapeutics, as such therapies offer the ability to treat multiple strains of different pathogens. While biased, I believe our Hemopurifier([R]) is the leading broad-spectrum candidate for treating viral pathogens. However, funding to develop and purchase broad-spectrum therapies has not existed in previous government programs.

Last month, the Department of Health and Human Services (HHS) mandated for broad-spectrum therapeutics to become a focal point of government bioterror and pandemic treatment initiatives. As stated in the legislation, the U.S. government will now support research, development, acquisition, storage/maintenance, deployment, and utilization of broad-spectrum treatment countermeasures able to address multiple bioterror and pandemic threats. The focus of prior government initiatives had been fixed defenses attempting to align a specific treatment with each known bioterror and pandemic threat. Now, the National Institutes of Health (NIH) will support research and development of broad-spectrum therapies. The newly established Biomedical Advanced Research and Development Authority (BARDA) will provide direct investment to develop qualified broad-spectrum therapies, and is mandated to spend $1 billion to fund countermeasure development during the next three years. In addition to this, and consistent with earlier government initiatives, HHS will also use the $5.6 billion Project BioShield special reserve fund and Strategic National Stockpile resources to acquire, store, maintain, and deploy top priority medical countermeasures, including those offering broad-spectrum therapeutic benefit.

The new HHS directives open the door for us to participate in mainstream government programs, and they validate our long-stated belief that broad-spectrum countermeasures will be required to protect our civilian and military populations from emerging bioterror and pandemic threats. In a case of fortunate timing, the United States Patent and Trademark Office (USPTO) has notified us that all claims underlying a patent application reinforcing the proprietary use of our Hemopurifier([R]) as a broad-spectrum therapeutic have been allowed.

So far in 2007, we have validated the promise of our technology through multiple new research collaborations and the filing of our IDE with the FDA. We have also expanded our growing intellectual property portfolio, and are positioned to benefit from new broad-spectrum treatment legislation. A pipeline of active infectious disease programs combined with early stage cancer research provides a strong foundation to create value for our shareholders well into the future.

On behalf of our team at Aethlon, I thank you for your continued support.

Very truly yours,


James A. Joyce
Chairman, CEO

About Aethlon Medical

Aethlon Medical has developed a first-in-class medical device to assist in the treatment of infectious disease. The device, known as the Hemopurifier([R]), is a platform technology positioned to be a broad-spectrum treatment for drug and vaccine resistant bioweapons, naturally evolving pandemic threats, and chronic infectious disease targets including Hepatitis-C (HCV) and the Human Immunodeficiency Virus (HIV). On March 6, 2007, Aethlon submitted an Investigational Device Exemption (IDE) to the U.S. Food and Drug Administration (FDA) requesting permission to initiate human safety studies of the Aethlon Hemopurifier([R])as a treatment countermeasure against select category "A" bioterror threats. Additional studies to demonstrate utility of the Hemopurifier([R])as a countermeasure against bioterror threats are being conducted with researchers at The Centers for Disease Control and Prevention (CDC), The United States Army Medical Research Institute of Infectious Diseases (USAMRIID), and The Southwest Foundation for Biomedical Research (SFBR). Category "A" bioterror threats are defined by the CDC as agents that pose a risk to national security; are easily disseminated or transmitted from person to person; result in high mortality rates; may cause public panic and social disruption, and require special action for public health preparedness. Global researcher, Frost & Sullivan awarded the Hemopurifier([R]) the 2006 Technology Innovation Award, and The AIDS Institute presented Aethlon with the 2007 Innovative HIV Life Sciences Leadership Award. The Company has also initiated research on a second generation Hemopurifier([R]) that targets the capture of growth factors inherent in the spread of Cancer. More information on Aethlon Medical and the Hemopurifier(TM) technology can be found at www.aethlonmedical.com.

Certain of the statements herein may be forward-looking and involve risks and uncertainties. Such forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Aethlon Medical, Inc to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such potential risks and uncertainties include, without limitation, the Company's ability to raise capital when needed, the Company's ability to complete the development of its planned products, the ability of the Company to obtain FDA and other regulatory approvals permitting the sale of its products, the Company's ability to manufacture its products and provide its services, the impact of government regulations, patent protection on the Company's proprietary technology, product liability exposure, uncertainty of market acceptance, competition, technological change, and other risk factors. In such instances, actual results could differ materially as a result of a variety of factors, including the risks associated with the effect of changing economic conditions and other risk factors detailed in the Company's Securities and Exchange Commission filings.