Press Release
Source: Viral Genetics, Inc.

Viral Genetics Successfully Secures Grant for New Lyme Research Study.

SAN MARINO, Calif. -- (Business Wire) -- March 18, 2009 -- Viral Genetics, Inc. (Other OTC:VRAL)

SAN MARINO, Calif.--(BUSINESS WIRE)--Viral Genetics, Inc. a biotechnology company that discovers and develops immune-based therapies, announced today it has successfully secured $75,000 in grant funding from the Turn The Corner Foundation for an upcoming Lyme disease study. The study headed by Viral Genetics Head of Research, Dr. M. Karen Newell and her research group at the University of Colorado in collaboration with Dr. Steven Harris of Pacific Frontier Medical, Redwood City, California and Dr. Peter Richards of San Francisco, will commence this week. The study involves testing and further exploration of a newly-discovered mechanism in Lyme disease founded upon the targeted peptides being developed by the Company and Dr. Newell.

"The ultimate goal of our research is to identify and optimize a new therapy for Lyme Disease that inhibits chronic inflammation and focuses the immune response," said Dr Newell. "I am thrilled that the Turn the Corner Foundation has chosen to fund our research about the potential molecular mechanisms involved in chronic Lyme Borreliosis. My lab, Viral Genetics, and I, feel a profound sense of responsibility to honor the trust that has been placed in our research by the dedicated and passionate members of the Turn The Corner Foundation."

Summary of the Work

The research proposal involves testing a newly discovered mechanism in which bacterial infection with the pathogen, Borrelia Borgdorferi, first activates an inflammatory response followed by a focused and more specific immune response. In previous studies the Viral Genetics model, discovered and unravelled by Dr Newell, suggests that the acute inflammation that is typical of initial infection with the bacteria should be helpful in resolving the disease. However, in some people (determined by their specific genetic makeup), the inability to dampen the inflammation and convert the immune response to a more focused, specific immune response may result in chronic ongoing symptoms characterized by the chronic "hyper-immune" activation.

Failure to control the initial inflammation in what should have been a temporary "innate" response turns into a chronic and spreading syndrome. The Newell model reconciles both the initial acute disease as Borrelia Burgdorferi mediated, and accounts for the immunologically-driven consequent processes that appear pathologically similar to outright autoimmune disease.

Dr. Newell will work with Dr. Steven Harris to correlate the ongoing symptoms of patients with Chronic Lyme Disease with the genetically determined patterns of patients "immune response" which are found in their MHC genes. The study also involves performing basic experiments with Borrelia Burgorferi and the impact the organism has on acute and chronic inflammatory responses.

"TTC is very exited to support the efforts of both Dr. Karen Newell and Viral Genetics Inc. The idea that their Targeted Peptide Therapy could suppress the inflammatory response that is so often present in chronic Lyme disease could be one step towards a cure" said Staci Grodin, Co-Founder of Turn The Corner Foundation. "Lyme disease is the most common vector born infectious disease in the U.S. It is a multi-symptom disease which can affect every part of the human body. Everyone is susceptible to Lyme disease and its symptoms can often mirror those of other illnesses, making it very difficult to diagnose. Left untreated, Lyme disease can be devastating to its victims."

Lyme Disease

Lyme disease has been reported in all 50 States with the highest incidence along the Eastern seaboard, Wisconsin, Minnesota and northern California. Lyme disease is caused by the transmission of the Borrelia Burgdorferi spirochete via the bite of the blacklegged Ixodes tick. Additional species can be found in Europe and northern Asia. The CDC reports a 100% increase in cases of Lyme Disease in the U.S. from 1991-2006, while recognizing that because of testing challenges at least ten times more cases may go unreported. In 2005 alone, 23,305 cases were reported in the U.S. Regardless of location, primary symptoms of Lyme Disease are characterized by persistent fatigue, chronic musculoskeletal pain, and subjective cognitive slowing. These symptoms can range from mild to life threatening dependent on the stage and progression of disease.

Research on Lyme disease, including symptoms related to the central nervous system and arthritis, has generated inconclusive and hotly debated, controversial results. Some researchers contend Lyme is driven by chronic infection and recommend patients be treated with antibiotics for the long term. Others support the hypothesis that the disease is the result of autoimmune T-cell activation that occurs subsequent to the initial infection or after the infection has cleared.

“We appreciate immensely the funding we have secured from the TTC Foundation. We must work quickly and efficiently to unravel this mechanism and get these answers, and only then can the Lyme research community stop debating and get on with the real task at hand which is discovering and distributing effective treatment to the patients that need it most," said Monica Ord, Viral Genetics SVP of Corporate Development and Communications.

TURN THE CORNER FOUNDATION (TTC) is a charity whose mission is to support research, education, awareness and innovative treatments for Lyme disease and other Tick-borne diseases. TTC has been involved with many exciting Lyme disease projects. They continue to fund their most successful initiative: the Physicians training program, which allows healthcare professionals to train with a Lyme- literate doctor and bring this newfound knowledge to their home communities. TTC has also become the official outreach partner to "Under Our Skin", a Lyme Documentary which has the potential to reach hundreds of thousands of people and further TTC's mission of awareness and education.

Contact:

Viral Genetics
Haig Keledjian, 626-334-5310

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