This Year's Highlights

• During the past year the Company's human ex-vivo work was awarded a $750,000 Phase I SBIR from the Natinal Cancer Institute and was published in the March issue of Human Gene Therapy.
• Completed an approximate $1.5 million A round financing providing the necessary funding to complete the IND filing with the FDA for the Company's first clinical stage produce (APOVAX - 180) and begin to expand the product pipeline.
• ApoImmune developed a new injectable therapeutic vaccine approach for cancer and infectious diseases that stimulates a stronger targeted immune response than monoclonal antibodies by activating dendritic cells.

Anticipated Highlights

• ApoImmune expects to start its first Phase 1 clinical trial focused on solid tumor cancers. Pre IND meetings have been held with the FDA and the current timetable calls for a IND filing in Q3 2006 and a Q4 2006 start.
• Complete $3-5MM B round financing in Q4 2006 to fund completion of clinical trial and pre-clinical and clinical trial costs related to injectable approach.
• Completion of animal tests demonstrating therapeutic efficacy of the Company's injectable approach for the treatment of cancer and infectious diseases in Q4 2006.

Corporate Mission

ApoImmune, Inc. develops recombinant proteins for the treatment of cancer, infectious diseases, organ transplantation and diabetes.

The Company is founded on a revolutionary broad platform technology that is used for immunomodulation. This technology platform, referred to as ProtEx?, meets the medical industry's need for a highly effective, practical and easy-to-use therapeutic. ApoImmune will focus its initial efforts on cancer, which, according to the American Cancer Society, costs the health care system more than $60 billion per year. The ProtEx? technology was shown to be highly effective in preventing cancer from developing in animals and eradicated cancer in a significant majority of animals with metastasized, rapidly growing tumors.

The Company was recently awarded a $750,000 Phase I SBIR from the National Cancer Institute for certain pre-clinical costs. In addition, the Company completed an approximate $1.5 million A round financing providing the necessary funding to complete the IND filing for the Company's autologous cancer vaccine. The Company expects to begin its first Phase I cancer trial in Q4 2006 and begin its first Phase II cancer trial in late 2007 or early 2008. Because of the technology's well developed stage, ApoImmune expects that the cost to complete its Phase 1 trial to be $1.5 million. ApoImmune expects to apply for more than $5.0 million in research grants during the next 18 months to advance the company's platform technology to develop additional products for markets such as Type I diabetes, organ transplantation, and infectious diseases. By early 2009 the company will complete a Phase II clinical trial and will determine an optimal exit strategy. If the company develops a successful drug in clinical trials for a large indication, it will be an IPO candidate; otherwise it will be an ideal merger candidate for a large pharmaceutical or biotechnology company looking to broaden its product line.