Hollis-Eden Pharmaceuticals Names Steven Gordziel Vice President, Product Development.

SAN DIEGO -- Hollis-Eden Pharmaceuticals, Inc. (NASDAQ:HEPH) announced that Steven Gordziel, Ph.D., has joined Hollis-Eden as Vice President, Product Development. In this newly created position, Dr. Gordziel will lead the Company's Chemistry, Manufacturing and Controls (CMC) activities.

Dr. Gordziel brings to Hollis-Eden a 30-year career in the pharmaceutical industry that has encompassed the full spectrum of product development and CMC disciplines with a wide range of compounds, product formulations and manufacturing processes. Prior to joining Hollis-Eden, Dr. Gordziel was Vice President of Pharmaceutical Development at Penwest Pharmaceutical Company. At Penwest, he managed a team of 30 members responsible for CMC activities including formulation development, analytical development and validation, stability evaluation, scale up and process development and preparation of clinical supplies for regulatory filings and clinical studies. Previously, Dr. Gordziel was Vice President, Development Research, for the Wallace Pharmaceuticals Division of Carter Wallace, Inc. With Carter Wallace for more than 20 years, Dr. Gordziel had the opportunity to build the company's product development capabilities and assume increasing management responsibility in all aspects of product development as the department grew to 70 people. During this time Dr. Gordziel was heavily involved in numerous Investigational New Drug (IND) and New Drug Application (NDA) submissions. Dr. Gordziel began his career at Ortho Pharmaceuticals and Wyeth Laboratories as a formulations scientist. He earned a B.S. in Pharmacy from the Philadelphia College of Pharmacy, and his Ph.D. degree in Pharmaceutical Chemistry from the University of Connecticut, Storrs.

"We are pleased to add Dr. Gordziel to our management team," stated Richard B. Hollis, Chairman and CEO of Hollis-Eden. "With his extensive experience in product development, ranging from building early-stage capabilities and programs through regulatory approval of various formulations of pharmaceutical products, we believe Dr. Gordziel is especially well-suited to lead our product development efforts."

In accordance with NASDAQ Marketplace Rule 4350, the Company has granted Dr. Gordziel an inducement stock option to purchase 40,000 shares of common stock of the Company, at an exercise price of $10.79 per share, which is equal to the fair market value of a share of the Company's common stock on the date of grant. This option was granted in reliance upon NASDAQ Marketplace Rule 4350 (i)(1)(A)(iv) and has been classified as a non-qualified stock option. The option vests as to one-fourth of the total number of shares upon the first anniversary of employment and vests as to the remaining shares monthly over the next three years until fully vested upon the fourth anniversary of employment. Vesting of the option is subject to continued employment or service through each relevant vesting date.

Hollis-Eden Pharmaceuticals, Inc., a development-stage pharmaceutical company based in San Diego, is a world leader in the development of a new class of investigational drugs known as Immune Regulating Hormones (IRHs). The goal of IRH therapy is to direct, through controlling gene expression, the production of key cytokines and enzymes that re-regulate immune and metabolic functions toward homeostasis, a profile that could be useful in a wide variety of diseases. Hollis-Eden has a number of investigational IRHs under development, including NEUMUNE(TM), which the Company is co-developing with the U.S. military for use in protection from radiation injury, IMMUNITIN(TM), which has shown activity in a variety of infectious diseases, including HIV/AIDS, tuberculosis and malaria, as well as additional compounds for protection from chemotherapy and other conditions of immune dysregulation. In addition, Hollis-Eden is developing PHOSPHONOL(TM), a non-IRH drug candidate, for providing protection against DNA mutations from radiation exposure and chemotherapy treatment. For more information on Hollis-Eden, contact the Company's website at www.holliseden.com.

This press release contains forward-looking statements concerning the potential and prospects of the Company's drug discovery program and its drug candidates. Any statement describing a goal, expectation, intention or belief of the Company is a forward-looking statement and should be considered an at-risk statement. Such statements are subject to certain risks and uncertainties, including the failure to successfully complete preclinical or clinical studies, the Company's ability to obtain additional funding and required regulatory approvals, the ability to successfully commercialize the Company's products, the ability of the Company to protect its intellectual property rights and to not infringe the intellectual property rights of others, the development of competitive products by other companies and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. The actual results may differ materially from those contained in this press release.