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From: TSS ()
Subject: Chronix Biomedical Awarded Grant for Mad Cow Disease Living Test
Date: April 18, 2005 at 1:03 pm PST

-------- Original Message --------
Subject: Chronix Biomedical Awarded Grant for Mad Cow Disease Living Test
Date: Mon, 18 Apr 2005 14:52:22 -0500
From: "Terry S. Singeltary Sr."
Reply-To: Bovine Spongiform Encephalopathy
To: BSE-L@LISTS.UNI-KARLSRUHE.DE


##################### Bovine Spongiform Encephalopathy #####################


April 18, 2005 01:36 PM US Eastern Timezone

Chronix Biomedical Awarded Grant for Mad Cow Disease Living Test; New
Blood Test Only Ante Mortem Diagnostic to Address BSE Eradication

BIOWIRE2K


SAN JOSE, Calif.--(BUSINESS WIRE)--April 18, 2005--Chronix Biomedical
announced today that it has received a letter from the German Ministry
for Education and Research (BMBF) that it has been awarded a grant of up
to EUR 500,000 ($650,000 USD). The grant will fund the development of
the Company's ante mortem (living) test for bovine spongiform
encephalopathy (BSE), commonly referred to as mad cow disease. On
September 28, 2004, the BioRegion GmbH board of reviewers recommended
that the German government approve the grant supporting the
commercialization of the Chronix Biomedical Gottingen Living Test (GLT),
an ante-mortem BSE susceptibility test.

Dr. Howard Urnovitz, Chief Executive Officer of Chronix, said, "This
award represents an international collaboration of corporate, academic
and governmental bodies toward the common goal of improving public
health. Additionally, it accomplishes the important milestone of
scientific validation of our core technology and its commercial
application in the marketplace." Dr. Urnovitz added, "The problem of BSE
affects humans in such a severe manner that only through the courage and
initiative of governments can we fight to eradicate this life
threatening disease. We commend the German government for its courage
and initiative and look forward to working collaboratively on this and
future projects."

The Company is currently in discussions with various financial
institutions for the purpose of securing the funds necessary to
commercialize the GLT, as well as further expanding its products to
include diagnostic tests for human diseases such as CJD and human cancers.

Currently, the only available BSE tests are post mortem tests performed
on brain tissue from animals that have been slaughtered. Animals are
currently confirmed as having BSE by tests that detect the misfolded
forms of the prion protein, which are not found in an animal until the
disease has progressed into late stage. These "prion positive" animals
are removed from the food chain. The Chronix GLT is performed on live
animals and requires only a blood sample. In its current format, the
GLT, a living test, can be run on hundreds of samples a day. The Company
will use the proceeds of the grant to assist in adapting the technology
for high throughput commercialization to allow performance of thousands
of tests per day.

Results from a clinical trial performed by the Company on the Chronix
GLT were presented on September 15, 2004, in Tokyo, Japan, at the
International Society for Animal Genetics. The results showed that the
test detected not only cows with confirmed BSE (i.e., prion positive
cows) but also high-risk prion negative animals exposed to
BSE-contaminated food. The data were based on a clinical study that the
Company conducted on confirmed prion positive cows (n=4), 15 at-risk
prion negative feeding cohorts (n=207) and randomly selected cattle from
a local slaughterhouse (n=908). By analyzing circulating nucleic acids
(CNA) in the blood, the Company observed a distinct pattern of
repetitive nucleic acids associated with prion positive cattle and their
associated prion negative feeding cohorts. Using gene amplification
techniques, the Company detected unique CNA profiles in 100% of the 15
BSE associated feeding cohorts. In contrast, only 0.55% of the prion
negative control group, comprised of normal herds and randomly selected
cattle from a local slaughterhouse, were reactive (p less than 0.001).
The significant association of the unique CNA profiles with BSE at-risk
cows supports the use of the Company's CNA PCR ante mortem test for
identifying at-risk herds in BSE eradication programs.

About Bovine Spongiform Encephalopathy (BSE):

Although the BSE epidemic appears to have started in cattle in 1984,
this type of neurological disease traces its roots to the 1730's when a
similar disease called scrapie was observed in sheep. The disease
appears to have spread to cattle when farmers began to feed parts of
sheep and other ruminants to their cattle. The disease appeared to jump
species, this time to humans in the form of variant Creutzfeldt-Jakob
disease (vCJD), when humans consumed infected cattle or were
administered medications produced using raw materials from cattle. More
recently, it was discovered that humans could also contract vCJD from
blood transfusions. Testing for BSE is conducted primarily in the EU and
Japan where approximately 13 million tests were performed in 2004. All
24 countries that test the food supply for BSE have discovered the
disease. However, the largest cattle populations in the world, namely
North America and South America, do not test cattle prior to its entry
into the food supply. Estimates of the economic impact of BSE vary
widely but most experts place the dollar figure in the tens of billions.

About BioProfil GmbH:

The BioProfil "Functional Genome Analysis" was initiated by research
establishments and biotechnology companies in the German regions of
Braunschweig, Gottingen, and Hannover. The German Ministry for Education
and Research has made available funding of up to EUR 15 million to
BioProfil, with the aim of making the results of research into the
biology of infections, neurobiology and stem cell biology economically
profitable. The BioProfil "Functional Genome Analysis" is coordinated by
BioRegion GmbH with a mission to provide development funding for
companies with new product ideas that demonstrate exceptional commercial
promise and public impact.

About Chronix Biomedical:

Chronix Biomedical is a functional genomics company whose products
address both the human and veterinary chronic disease markets. The
company's core technology is based on a proprietary approach to
developing laboratory tests for the early detection and monitoring of a
new class of markers for chronic illnesses: circulating nucleic acids
(CNA). Chronix's first commercial product, the Gottingen Living Test
(GLT) is a test for the detection of cows at risk for developing bovine
spongiform encephalopathy (BSE) or mad cow disease. The company released
its first in-house clinical results
(http://www.chronixbiomedical.com/dw/isagbwnoshad.pdf) at the 29th
International Conference on Animal Genetics, the International Society
of Animal Genetics in September 2004.

Statements in this press release that are not historical facts are
forward-looking statements within the meaning of the Securities Act of
1933, as amended. Those statements include statements regarding the
intent, belief or current expectations of the Company and its
management. Such statements reflect management's current views, are
based on certain assumptions and involve risks and uncertainties. Actual
results, events, or performance may differ materially from the above
forward-looking statements due to a number of important factors, and
will be dependent upon a variety of factors, including, but not limited
to, the Company's ability to obtain additional financing and access
funds from its existing financing arrangements that will allow it to
continue its current and future operations and whether demand for its
test products in domestic and international markets will continue to
expand. The Company undertakes no obligation to publicly update these
forward-looking statements to reflect events or circumstances that occur
after the date hereof or to reflect any change in the Company's
expectations with regard to these forward-looking statements or the
occurrence of unanticipated events. Factors that may impact the
Company's success are more fully disclosed in the Company's most recent
Private Placement Memorandum. Any illustrations of foreign currency
conversions are approximations based on composite rates from the date of
this press release.

Contacts

Chronix Biomedical
John DiPietro, 408-441-2072
jdipietro@chronixbiomedical.com

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20050418006005&newsLang=en


TSS

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