Press Release
Source: Viral Genetics, Inc.

Unregistered Sale of Equity Securities, Financial Statements and Exhibits.

AZUSA, CA -- July 08, 2008 -- Viral Genetics, Inc.

Item 3.02 Unregistered Sales of Equity Securities
On March 5, 2008, Best Investments, Inc. ("Best"), an affiliate of the registrant's President, Haig Keledjian, entered into a Debt Restructuring Agreement with the registrant whereby the registrant and Best agreed to restructure $1,508,302.00 in outstanding indebtedness owed by the registrant to Best. The original indebtedness matured on March 29, 2008.

The Debt Restructuring Agreement converted the existing indebtedness to a revolving line of credit which is secured by substantially all of the assets of the registrant. The revolving line of credit matures June 30, 2013, bears interest at the rate of 5% per annum, payable at the maturity date. The obligations under the revolving line of credit may be prepaid at any time and may be exchanged for common stock and a warrant. The conversion price is equal to the volume weighted closing price of the registrant's common stock for the 20 trading days preceding notice of conversion by Best to the registrant. For each share of stock issued for conversion of obligations, Best will receive a warrant to purchase a share of common stock for 150% of the price for which obligations under the revolving line of credit were converted. The warrant expires five years from the date of issuance.

The amount Best agreed to lend the registrant under the revolving line of credit was not limited. The obligations of the registrant under the revolving line of credit are guaranteed by its subsidiary, Viral Genetics, Inc., a California corporation.

Item 9.01. Financial Statements and Exhibits.

Exhibits

Copies of the following documents are included as exhibits to this report pursuant to Item 601 of Regulation S-K.

Number Description

10.1 Debt Restructuring Agreement
10.2 Security Agreement
10.3 Subsidiary Guarantee

Contact:
For additional information, please contact:
Viral Genetics
626-334-5310

Source: Viral Genetics, Inc.

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