Applied Veterinary Genomics Successfully Defends Its Licenses to Use the Patented CytoGenix ssDNA Expression System.

HOUSTON -- Applied Veterinary Genomics, Inc. ("AVGI") today announced that its long delay in finalizing its research on equine lameness has been successfully resolved by a Harris County jury. That delay resulted from the refusal of CytoGenix, Inc.(OTCBB:CYGX) to honor its license agreements. These dishonored licenses granted AVGI the right to use CytoGenix's patented ssDNA vector in both equines and crustaceans. The licenses, originally granted by CytoGenix to William B. Waldroff, were subsequently acquired by AVGI from Waldroff. In the recent decision, the 11th Judicial District Court of Harris County, Texas, entered its judgement confirming the jury's swift finding of multiple breaches of contract by CytoGenix, and ordering CytoGenix to provide its patented ssDNA vector expression in accordance with the licenses. The court also entered permanent injunctions against certain future CytoGenix conduct and ordered CytoGenix to pay both AVGI and Waldroff their respective attorney fees and all court costs.

"We know the same exciting genomic technology created by Dr. Charles Conrad, acquired by CytoGenix, licensed to Waldroff and sub-licensed to AVGI, is not only demonstrably useful in humans but extremely favorable for our initial product for horses as well," said AVGI President Charles S. Boyd. "We are quite excited that the efforts to delay and compromise our highly promising work may be over, and we can now move forward with utilizing the CYGX ssDNA vector for the reduction or elimination of inflammation associated with lameness in horses. Our scientists had long ago completed all the research possible for our initial product, and were only waiting until the plasmid utilizing our researched genomic sequence was finally obtained for their final tests. Now that we have a court order compelling the production of the plasmid by CytoGenix, all of us are thrilled to again be moving forward."

Lameness and related inflammation in horses is one of the leading problems faced by horse owners and trainers, costing hundreds of millions of dollars each year in treatment and lost opportunities. The anticipated results of AVGI's use of the genomic technology would result is enormous savings for the equine industry.

The statements in this news release which are not historical facts are forward-looking statements within the meaning of the federal securities laws, and may involve a number of risks and uncertainties that could cause actual results to differ materially from those currently anticipated. These factors and risks include, but are not limited to, general economic conditions, risks associated with the development and acceptance of new products, competition, financing and other factors. Further information about AVGI can be found on the company website at www.avgi.net.