Ceragenix Pharmaceuticals' Chief Scientific Officer Awarded $1.2 Million Research Grant by National Institutes of Health.

DENVER -- NIH Funded Study to Evaluate Ceragenix's Barrier Repair Technology as Potential Method to Prevent Potentially Fatal Complication of Smallpox Vaccinations in Persons Who Have Had Eczema

Ceragenix Pharmaceuticals, Inc. ("Ceragenix" or the "Company")(OTCBB:CGXP) today announced that Dr. Peter Elias, Professor of Dermatology at the University of California, San Francisco, and the Company's Chief Scientific Officer, has been awarded a $1.2 million research grant by the National Institutes of Health to study the role of the skin's barrier function as it relates to eczema vaccinatum, a potentially fatal complication of smallpox vaccination in persons who have or who have had eczema.

Renewed concern that smallpox virus might be employed as a bioterrorism agent has led to an early implementation of a limited vaccination program. The smallpox vaccine uses a live virus to innoculate patients. Research by Dr. Donald Leung (National Jewish Hospital, Denver, CO) and Dr. Richard Gallo (University of California, San Diego) has shown that persons with eczema are at increased risk for viral infections because of lower levels of antimicrobial peptides in their skin. There is also reason to believe that the defective skin barrier present in persons with eczema may also play an important role in the increased risk of viral infection. Persons with normal skin are able to prevent widespread viral infection from the live virus in the smallpox vaccine whereas persons with eczema have greater difficulty doing so.

Dr. Elias's study will first determine who is at the highest risk of developing eczema vaccinatum, comparing skin barrier function measurements and biochemical parameters in various Atopic Dermatitis ("AD") clinical subgroups to determine skin barrier status. In a second part of the study, use of Ceragenix's Barrier Repair Technology will be evaluated as a potential means of pretreating persons at risk for eczema vaccinatum to prevent the development of the disease. The hypothesis is that the effect of the Barrier Repair Technology may be sufficient to create a skin barrier that is able to resist the spread of the virus. In summary, the short-term goals of this study are to determine which persons suffering from AD or a history of AD can safely receive the Vaccinia vaccine; and to determine if skin pretreatment decreases the risk of eczema vaccinatum in patients at high risk who must receive the Vaccinia vaccine.

Steven Porter, Chairman and CEO of Ceragenix stated: "We are very pleased that our Barrier Repair Technology, which we have licensed from the Regents of the University of California, may play a role in safeguarding certain individuals against the threat of a bioterrorism attack."

About Ceragenix

Ceragenix is a development-stage biopharmaceutical company focused on dermatology and infectious disease. Ceragenix's patented Barrier Repair Technology, invented by Dr. Peter Elias and licensed from the University of California, is the platform for the development of two prescription topical creams -- EpiCeram(tm) and NeoCeram(tm) -- that form human-identical skin barriers. Defects in the skin's barrier function play critical roles in the pathogenesis of skin diseases such as eczema, irritant contact dermatitis, and other common skin disorders. The Company's patented Cationic Steroid Antibiotic (CSA) technology provides the basis for its novel antimicrobial medical device coating that may be attached to various medical devices to provide potentially long duration antimicrobial activity. Ceragenix also plans to develop CSAs for use as topical and systemic antibiotic therapies in the treatment of skin infections (MRSA), burn wound infections, eye infections, and other indications.

Forward-Looking Statements

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