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CURALOGIC BEGINS TRIAL OF GRASS ALLERGY DRUG

January 12, 2007

Curalogic has begun treating the first patients in a Phase II trial with its drug for treatment of grass allergy. The purpose of the trial is to determine a maximum tolerated dose of orally administered grass pollen extract in patients suffering from grass allergy. A total of 30 patients will participate in this trial, which will be carried out at a single clinical center in Germany. Top-line results from the trial are expected to be released during the second quarter.

A secondary objective of the trial is to evaluate the safety of the grass product. The trial is a double-blinded, randomized, placebo-controlled trial. Patients with moderate to severe grass allergy will be treated daily with increasing doses of microencapsulated grass pollen extract. Each dose level will be given for one week. The dose level is increased weekly following a careful review of the safety of the previous dose level. In this trial, patients will be receiving treatment for up to seven weeks.

Curalogic's product for treatment of grass allergy has been tested previously in a clinical trial where 48 patients received increasing doses of grass pollen extract or placebo over a 10-week period. Results from the clinical trial showed that the grass product was well tolerated, and the trial gave the first indications of a down-regulation of the immune response to grass pollen.