Arrowhead Research Partners with Rinzler Lab at University of Florida to Make Flexible Thin Film Transistors Aimed at the Estimated $20 Billion Flexible Electronics Market.

PASADENA, Calif. -- Arrowhead Research Corporation (Nasdaq:ARWR), announced today that it will begin a collaboration with Dr. Andrew Rinzler to further develop flexible electronic devices made at the University of Florida. Arrowhead will have the first option to exclusively license and commercialize the technology.

"Dr. Rinzler has made new thin film transistors using carbon nanotubes that could break open this field," said R. Bruce Stewart, CEO and Chairman of Arrowhead. "We look forward to working with him to optimize his devices and put together a plan for commercialization."

Thin film transistors (TFTs) can be used to make products such as low cost RFID (radio frequency ID) tags, flexible displays, and electronic paper. Further, unlike state of the art electronics manufacturing facilities which cost billions of dollars, flexible electronics are likely to be produced with low cost ink-jet printing technologies. According to estimates from NanoMarkets, the total market for products based on thin film transistors could reach over $20 billion by 2012.

Dr. Rinzler is a professor in the Physics Department at the University of Florida, specializing in carbon nanotube processing and devices. In addition to his novel nanotube-based transistor architecture, he also developed pure homogeneous nanotube films as transparent conductors. As a post doctoral fellow in Rick Smalley's Laboratory, Dr. Rinzler was among the early researchers to develop the field of carbon nanotubes. He was listed by Thomson ISI in the top 10 of the most cited authors in Nanotechnology for the decade 1992-2002. He is coauthor on over 65 refereed publications, with 20 patents issued and several applications in process.

Under the agreement with the University of Florida, Arrowhead will provide $647,000 over a two year period to develop optimized TFT devices and prototypes of TFT arrays.

About Arrowhead Research Corporation

Arrowhead Research Corporation (www.arrowheadresearch.com) is a diversified nanotechnology company structured to commercialize products expected to have revolutionary impacts on a variety of industries, including materials, electronics, life sciences, and energy.

There are three strategic components to Arrowhead's business model:

--Outsourced R&D Program: Arrowhead identifies patented or patent-pending technologies at universities or government labs and funds additional development of those technologies in exchange for right to exclusively license and commercialize the resulting prototypes. Leveraging the resources and infrastructure of these institutions provides Arrowhead with a cost-effective development pipeline. Currently, Arrowhead is supporting efforts in drug discovery tools, stem cell technology and nanoelectronics at the California Institute of Technology, Stanford University, Duke University, and the University of Florida respectively.

--Commercialization Program: After prototypes have been sufficiently developed in the laboratories, Arrowhead forms or acquires majority-owned subsidiaries to commercialize the technology and provides the subsidiaries with strategic, managerial and operational support. By doing so, each research team is able to maintain focus on its specific technology and each management team can focus on specific markets, increasing the likelihood of successful technological development and commercialization. At present, Arrowhead owns majority interest in subsidiaries commercializing diverse technologies, including anti-cancer drugs, RNAi therapeutics, compound semiconductor materials and carbon nanotube technology.

--The Patent Toolbox: Arrowhead has acquired or exclusively licensed patents and patent applications covering a broad range of nanotechnology. The Company actively adds to its intellectual property portfolio.

About University of Florida Office of Technology Licensing

The University of Florida's Office of Technology Licensing (OTL) is the University's main commercialization center. It receives almost 300 disclosures per year generated from the cutting-edge research that takes place from all around the campus. OTL has partnered with companies throughout Florida, the Southeast and nationally to assist in the movement of technologies to the marketplace and welcomes the opportunity to work with companies interested in such a partnership. For more information, visit the website at www.otl.uf.edu or email [e-mail].

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