Press Release
Source: Viral Genetics, Inc.

Viral Genetics Appoints Scientific Development Manager to Focus on Translational Studies.

Azusa, California; August 2, 2007. Viral Genetics, Inc. (OTCBB: VRAL) has retained the services of Michael Agadjanyan, PhD, of the Institute for Molecular Medicine as Acting Director of Preclinical Development. Dr. Agadjanyan has been retained primarily to assist with the implementation of “translational” studies mandated by the development plan for VGV-1, the Company’s HIV/AIDS drug candidate, as outlined by the Scientific Advisory Board.

The studies are referred to as “translational” in that they are intended to bridge or translate preclinical laboratory research into human clinical trials. Specifically, Dr. Agadjanyan will focus on:

• continued “characterization” and identification of the active components of VGV-1
• isolation of the components’ mechanism of action
• refinement of production processes, and
• execution of activity assays designed to reveal antiviral and immune-modulating properties of the compounds such as the antiviral effects apparent in the recent South African clinical trial results.

This work is intended to build off and supplement the Company’s previous research as a precursor to moving forward with clinical trials in the US or elsewhere.

Dr. Agadjanyan has been involved with Viral Genetics for several years in various advisory capacities. He was instrumental in the recent isolation of key peptides in VGV-1. The present consulting engagement represents a more comprehensive relationship with Dr. Agadjanyan in that he will supervise the design of studies recommended by the Company’s Scientific Advisory Board, assist in the selection of laboratories and research facilities, assist in the management of subcontracted laboratories, and interpret study results while directly reporting to the Company’s CEO and President and the Scientific Advisory Board. He will continue his other projects and appointments at the Institute for Molecular Medicine and elsewhere.

“I am looking forward to continuing to help Viral Genetics move this unique compound forwards,” Dr. Agadjanyan said. “Our strategy is guided by a focus on precise scientific methods. We intend to complete relatively routine and brief studies to improve the compound by seeking improved production processes, clearly identifying the active component or components, and understanding their properties. The goal would be to bring this information to the Scientific Advisory Board so they can help with the design of dose optimization studies in the US to improve the apparent antiviral effects observed in the Company’s HIV/AIDS clinical trials. This data would also naturally be valuable to any Company foreign registration plans.”

A PhD immunologist and virologist, Dr. Agadjanyan has expertise in HIV, Alzheimer’s disease, immunotherapy, and vaccine research with over 80 publications in peer-reviewed journals. He is currently Vice President and Head of the Immunology Department at the Institute for Molecular Medicine, and Adjunct Professor at the Institute for Brain Aging and Dementia at the University of California, Irvine. He was previously Visiting Professor at the University of Pennsylvania and the Wistar Institute, and he is a Professor of the Institute of Viral Preparation at the Russian Academy of Medicine in Moscow.

“We are very pleased to bring to the Company an individual with Dr. Agadjanyan’s experience in directly managing the operational execution of a scientific research program. In a sense, the Scientific Advisory Board will be acting as our architect and Michael will be our general contractor. We will, of course, manage and supervise the overall process in accordance with our strategic objectives of commercializing VGV-1 and attaining significant clinical development milestones in the US,” said Haig Keledjian, CEO and President of Viral Genetics.

In recent studies, a reduction of HIV viral load was observed in a subset of patients after treatment with VGV-1 versus patients receiving placebo. As reported by Dr. Patrick Bouic in the Company’s poster presentation at the 2006 XVI International AIDS Conference, VGV-1 treated subjects also demonstrated apparent beneficial immunological changes when compared with placebo.

The World Health Organization estimates approximately 40 million people are now living with HIV. Even with the available treatments for AIDS, there are large numbers of people that need alternative therapies and hope remains that progress will be made in discovering new therapies that bolster patients’ immune systems.

About VGV-1
VGV-1 is a therapy based on thymus nuclear protein which is extracted from bovine thymus tissue. As a type of immune-based therapy, it focuses on boosting the immune system to allow the body to fight HIV more efficiently. Thymus nuclear protein technology has been studied in five human clinical trials for the treatment of HIV infection and AIDS.

About Viral Genetics
Viral Genetics, Inc. is a biotechnology company that discovers and develops immune-based therapies for HIV and AIDS using its thymus nuclear protein compound. This compound may have other potential applications for other infectious, autoimmune, and immunological deficiency diseases that the company intends to study in the future.  Viral Genetics believes that VGV-1 represents a significant and unique approach to treating HIV due to the apparently novel mechanism, low toxicity profile, simple dosing regimen, and short-course of treatment.  Online at www.viralgenetics.com

This news release contains forward-looking statements that involve risks and uncertainties associated with financial projections, budgets, milestone timelines, clinical development, regulatory approvals, and other risks described by Viral Genetics, Inc. from time to time in its periodic reports filed with the SEC. VGV-1 is not approved by the US Food and Drug Administration or by any comparable regulatory agencies elsewhere in the world. While Viral Genetics believes that the forward-looking statements and underlying assumptions contained therein are reasonable, any of the assumptions could be inaccurate, including, but not limited to, the ability of Viral Genetics to establish the efficacy of VGV-1 in the treatment of any disease or health condition, the development of studies and strategies leading to commercialization of VGV-1 in the United States, the obtaining of funding required to carry out the development plan, the completion of studies and tests on time or at all, and the successful outcome of such studies or tests. Therefore, there can be no assurance that the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the forward-looking statements should not be regarded as a representation by Viral Genetics or any other person that the objectives and plans of Viral Genetics will be achieved.

For additional information, please contact Viral Genetics at 626-334-5310.

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

Source: Viral Genetics, Inc.

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