Released on = August 7, 2006, 10:03 am

Press Release Author = Pascal Deschatelets

Industry = Biotech

Press Release Summary = Potentia entered into a worldwide exclusive licensing
agreement with the University of Pennsylvania covering the use of Compstatin and
related complement inhibiting peptides for all ophthalmological indications.

Press Release Body = July 27, 2006 - Potentia Pharmaceuticals, Inc. announced today
that it has entered into an exclusive, worldwide licensing agreement with the
University of Pennsylvania that provides broad rights to develop and commercialize
University of Pennsylvania's Compstatin class of complement-inhibiting peptides for
the treatment of ocular diseases. While the terms of the license have not been
disclosed, this agreement will allow Potentia to move forward with the preclinical
development of the first complement-inhibiting drug product aimed at treating both
the "wet" and "dry" forms of age-related macular degeneration (ARMD).

"We are excited to work with the University of Pennsylvania in developing the first
treatment for macular degeneration based on the important genetic findings of the
last year" said Cedric Francois, M.D., Ph.D., Chief Executive Officer for Potentia.
"Genetic analysis of patients with macular degeneration has now clearly established
that excessive complement activation is involved in the development of macular
degeneration. Compstatin is one of the best complement-inhibiting drugs available
and we look forward to evaluate its potential and to help patients suffering from
this devastating disease."

About the Complement System and Compstatin

Complement activation is an inflammatory process involving dozens of plasma
proteins, ultimately leading to cell membrane disruption through the membrane attack
complex (MAC). Activation of the complement system is an important part of the
body's defensive immune response against pathogens such as bacteria and viruses. In
spite of its defensive function, inappropriate or excessive complement activation
can have destructive consequences if left unchecked. Over the past 18 months,
multiple scientific publications have strongly linked variants of genes encoding
components of the complement system, notably complement factors B and H, with a
predisposition toward ARMD and drusen formation.

Compstatin is a synthetic 13 amino acid cyclic peptide discovered by Prof. John
Lambris at the University of Pennsylvania. It binds tightly to complement component
C3, preventing its participation in the complement activation cascade. As C3 is a
central component of all three known complement activation pathways, its inhibition
effectively shuts down all downstream complement activation that could otherwise
lead to local inflammation, tissue damage and upregulation of angiogenic factors
such as vascular endothelial growth factors (VEGF).

About Age-Related Macular Degeneration

ARMD is the progressive deterioration of the critical central region of the retina
called the macula. This disorder leads to irreversible loss of central vision. More
than 25 million patients worldwide (9 million in the US alone) suffer from ARMD,
including roughly one-quarter of those 70 years and older. Ten percent of patients
with ARMD develop a complication in which leaky blood vessels grow into the eye.
This form of the disease is referred to as 'neovascular' or 'wet' ARMD, as opposed
to 'atrophic' or 'dry' ARMD when this complication does not emerge. Treatment of
ARMD is currently limited to drugs that prevent blood vessel growth and are
therefore only efficacious in cases of wet ARMD.

About Potentia's ARMD Program

Potentia's ARMD program focuses on developing new therapies that target ARMD early
in the disease process, with the ultimate goal of making ARMD a preventable disease.
Potentia's first series of products will be Compstatin-based complement inhibitors
formulated to protect patients from the disease for a year or more after each
treatment. Potentia projects that it will initiate its first Phase I clinical trial
in the first half of 2007.

About Potentia Pharmaceuticals, Inc.

Potentia Pharmaceuticals, Inc. (http://www.potentiapharma.com) is a private,
development-stage biotechnology company based in Louisville, KY and with operations
in Boston, MA and Santa Fe, NM. Together with its corporate and academic partners,
Potentia is developing new approaches to the treatment of ocular chronic
inflammatory diseases such as ARMD, diabetic retinopathy, and uveitis.

Potentia Contact: Cedric Francois, President & CEO
(502) 295-4607

SOURCE: Potentia Pharmaceuticals, Inc.

This press release contains \"forward-looking statements\" regarding the potential
therapeutic benefits and progress of Potentia's research and development programs.
These statements are hereby identified as \"forward-looking statements\".
Forward-looking statements include statements regarding Potentia's expectations,
beliefs, intentions or strategies regarding the future and include statements
containing forward-looking words such as "anticipate", "believe", "could",
"estimate", "expect", "intend", "may", "should", "will", and "would" or similar
words. Such statements are based on our management\'s current expectations and
involve risks and uncertainties. Actual results and performance could differ
materially from those projected in the forward looking statements as a result of
many factors, including, without limitation, uncertainties relating to drug
discovery; formulation development; clinical development processes; enrollment rates
for patients in our clinical trials; changes in relationships with strategic
partners and dependence upon strategic partners for the performance of certain
activities under collaborative agreements; the impact of competitive products and
technological changes; uncertainties relating to patent protection and uncertainties
relating to our ability to obtain funding. Potentia disclaims any intent or
obligation to update this press release or forward-looking statements contained
therein.

Our logo, trademarks, and service marks are the property of Potentia
Pharmaceuticals, Inc. All other trade names, trademarks, or service marks are
property of their respective owners.


Web Site = http://www.potentiapharma.com

Contact Details = Cedric Francois,
201 E. Jefferson St., Suite 312
Louisville, KY 40202
Ph:(502) 295-4607
cedric@potentiapharma.com