CytoGenix and Omnimmune Begin Cooperative Research.

Business Editors/Health & Medical Writers

HOUSTON--(BUSINESS WIRE)--Aug. 28, 2001

CytoGenix Inc. (OTCBB:CYGX) has initiated a Cooperative Research and Development Agreement (CRADA) with Omnimmune Corporation.

Omnimmune Corp. is a private biotechnology company with offices in Houston and Pittsburgh, developing and commercializing breakthrough monoclonal antibodies to facilitate delivery and targeting of gene-based products for the diagnosis, prognosis, management, prevention and treatment of cancer.

CytoGenix is a Houston-based, genomics company involved in the research, development, and commercialization of single-stranded DNA (ssDNA) expression systems. The CytoGenix platform technology is an intracellular expression system that produces unmodified strands of ssDNA designed specifically for therapeutic interventions related to antisense, triplex, DNA vaccine, aptamer, and catalytic DNA applications. CYGX has an issued U.S Patent and ten pending patent applications including three published PCT filings.

The technology developed by Omnimmune demonstrates potential for synergy with the CytoGenix expression technology by enhancing the targeting and uptake of the CYGX vector into selected cell lines. Once in the cell, the CYGX expression system continues producing multiple copies of the programmed single stranded DNA sequence for the life of the cell.

CytoGenix research to date has provided proof-of-principle in cell studies and has resulted in a published manuscript authored by Yin Chin, Ph.D., entitled "In vivo expression of single-stranded DNA in mammalian cells with DNA enzyme sequences targeted to c-raf" in the journal Antisense & Nucleic Acid Drug Development. Additional results documented in a second manuscript by Dr. Chin were presented in January at the Keystone Symposia Gene Therapy meeting in Snowbird, Utah, and received national attention in an online news report by the New Scientist. Dr. Chin was recently promoted to director of research for CytoGenix.

"The CytoGenix ssDNA technology has the potential to express any of hundreds of antisense sequences already discovered and under investigation." Points out Dr. Malcolm Skolnick, CEO, "This expression takes place in the cell and therefore will reduce the production of various harmful proteins with greater efficiency than does the standard approach of attempting to flood the intercellular space with antisense sequences in the hope that sufficient numbers will be taken up by target cells."

CytoGenix Executive VP Dell Gibson sums up, "Much of our ongoing research is directed towards known sequences to help strategically align our interests with those of major players in the field. Given the broad application of antisense therapy alone, never mind catalytic DNA, aptameric, and triplex applications, we believe that our ssDNA expression technology is the kind of innovative, broad platform that will be extensively utilized throughout the gene therapy industry."

Additional information about CytoGenix and its technology can be found on the Web site at www.cytogenix.com

Safe Harbor

Except for statements of historical fact, the statements in this press release are forward-looking. Such statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include, but are not limited to, general economic conditions, risks associated with the acceptance of new products, competition, and other factors more fully detailed in the company's filings with the Securities and Exchange Commission.