Inovio Biomedical Redirects Strategic Emphasis toward DNA Vaccines and DNA Delivery.

Company expanding R&D to advance its DNA delivery technology and develop proprietary DNA vaccines for cancer and chronic infectious diseases 

Inovio anticipates human data from first-in-man studies using its electroporation-mediated DNA delivery technology, adding to interim data that provided initial validation of the technology's ability to deliver and enhance potency of DNA-based immunotherapies

Inovio has ample cash as it contracts the SECTA program and expands its DNA vaccine and delivery program

SAN DIEGO -- Inovio Biomedical Corporation (AMEX:INO), which is focused on the development of DNA vaccines for cancers and infectious diseases, announced today it is focusing its research and development efforts on its electroporation-mediated DNA delivery technology and DNA vaccines with the objective of further building potential downstream value to existing and prospective partners. Overall, management has concluded that the potential return on capital invested in Inovio's DNA delivery technology is significantly greater than the potential return on its Selective Electrochemical Tumor Ablation (SECTA) program. Therefore, Inovio will focus its research and development efforts on the DNA vaccine market while pursuing avenues for commercialization of the SECTA therapy. The company's strategy is to:

* Maintain and build Inovio's industry-leading intellectual property and patent estate related to its proprietary electroporation-mediated DNA delivery platform.

* Pursue additional academic and commercial partnerships, adding to license agreements with Merck and Wyeth as well as multiple other partnerships. With five clinical studies in progress, the goal is to build a deep pipeline of preclinical and clinical programs, conducted by partners, that may further validate the potentially pivotal role Inovio's technology may play in delivering and enhancing the potency of promising DNA vaccines as well as identify and validate promising DNA vaccines themselves. Existing partnerships are anticipated to generate future income as pre-defined milestones are achieved and new partnerships would potentially add to future cash flow and further build Inovio's unique and proprietary database regarding electroporation-mediated delivery of DNA-based immunotherapies.

* Support partners in their initiation and execution of DNA vaccine clinical studies.

* Expand Inovio's research and development efforts with the intent to create or acquire and develop promising proprietary DNA vaccines for cancer and chronic infectious disease targets from preclinical stage through to Phase II clinical studies, which can potentially create significant value with relatively nominal capital investment.

Inovio is in a strong financial position to execute this strategy, with $31 million in cash reported as of June 30th. The strategy involves concluding the research and development program and focusing on a commercialization path for the company's Selective Electrochemical Tumor Ablation (SECTA) therapy program. Planned reductions in expenditures relating to SECTA R&D will result in additional capital being directed to the DNA vaccine/DNA delivery program. Inovio intends to maintain a monthly cash burn of about $1.1 million through 2008.

"Our growing activity in DNA vaccines and DNA delivery during the last two years combined with our current healthy cash situation positions Inovio to realize important value-adding milestones going forward," said Dr. Avtar Dhillon, president and CEO. "For example, during the next three quarters we anticipate additional data from at least three DNA-based immunotherapy clinical studies being conducted by partners and using Inovio's DNA technology. Previously reported interim results from these studies were positive, providing higher confidence regarding their final outcomes."

Dr. Dhillon noted that three sets of independent interim data, reported in the spring, from Inovio's first-in-man Phase I/IIa clinical studies using its DNA-delivery platform for DNA-based immunotherapies against certain cancers all showed safety, tolerability, and objective clinical responses. "Since these studies are treating diseased rather than healthy patients, the broader scope of resulting data provided an important initial proof-of-principle of Inovio's DNA delivery platform and the role it might play in enhancing the potency of important experimental vaccines against cancers and chronic infectious diseases," added Dr. Dhillon.

"We also expect the initiation of a fifth clinical study, the first focused on an infectious disease, hepatitis C, using our DNA delivery platform," said Dr. Dhillon. "Tripep, another valued Inovio partner, has approval to initiate a Phase I/II study for its hepatitis C DNA vaccine and expects to enroll its first patient in the fourth quarter of this year. Furthermore, ongoing business development efforts may lead to additional validating partnerships to use Inovio's technology in conjunction with DNA vaccines focused on new disease targets," Dr. Dhillon said.

In a recent strategic review, Inovio management determined that the multi-billion dollar market opportunities for DNA vaccines, multiple positive steps for the DNA vaccine sector and for Inovio during the course of the last year, and potentially significant returns on R&D capital invested in this area warranted a strong focus and growing investment on DNA delivery and DNA vaccines. With validating data from prior SECTA clinical studies and the belief that pending data from five SECTA clinical studies may also support the merits of the therapy, Inovio's plan is to complete patient monitoring and data analysis for its existing SECTA clinical trials and not initiate further SECTA clinical studies. The company is seeking a commercialization path for SECTA, which may include: a) securing one or more industry partnerships for select geographic regions or globally; b) spinning out the SECTA assets into a newly formed company, to be funded by third party investors; or c) selling the SECTA asset. Management estimates the capital cost to complete SECTA patient monitoring and data analysis and conclude this program may amount to approximately $6 million. This activity is expected to be substantially completed by the end of 2008. These expenditures are included in the monthly burn rate of approximately $1.1 million.

About Inovio Biomedical Corporation

Inovio Biomedical (AMEX: INO) is focused on the development of multiple DNA-based immunotherapies. Inovio is a leader in developing human applications of electroporation, using brief, controlled electrical pulses to increase cellular uptake of a useful biological material. Interim human data has shown that Inovio's DNA delivery technology can significantly increase gene expression and immune responses from DNA vaccines. Immunotherapy partners include Merck, Wyeth, Vical, University of Southampton, Moffitt Cancer Center, the U.S. Army, National Cancer Institute, and International Aids Vaccine Initiative. Inovio's technology is protected by an extensive patent portfolio covering in vivo electroporation. More information is available at www.inovio.com.

This press release contains certain forward-looking statements relating to our plans to develop our electroporation drug and gene delivery technology. Actual events or results may differ from our expectations as a result of a number of factors, including the uncertainties inherent in clinical trials and product development programs (including, but not limited to, the fact that pre-clinical results referenced in this release may not be indicative of results achievable from testing in humans and that results from one study may necessarily not be reflected or supported by the results of other similar studies), the availability of funding to support continuing research and studies in an effort to prove safety and efficacy of Inovio's technology as a delivery mechanism, the availability or potential availability of alternative therapies or treatments for the conditions targeted by Inovio or its collaborators, including alternatives that may be more efficacious or cost-effective than any therapy or treatment that Inovio and its collaborators hope to develop, evaluation of potential opportunities, issues involving patents and whether they or licenses to them will provide Inovio with meaningful protection from others using the covered technologies, whether such proprietary rights are enforceable or defensible or infringe or allegedly infringe on rights of others or can withstand claims of invalidity and whether Inovio can finance or devote other significant resources that may be necessary to prosecute, protect or defend them, the level of corporate expenditures, assessments of our technology by potential corporate or other partners or collaborators, capital market conditions, and other factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2006, our 10-Q for the six months ended June 30, 2007, and other regulatory filings. There can be no assurance that any product in our product pipeline will be successfully developed or manufactured, or that final results of clinical studies will be supportive of regulatory approvals required to market licensed products.