Genaera Corporation Implements Cash Conservation Plan

PLYMOUTH MEETING, Pa., March 30 /PRNewswire-FirstCall/ -- Genaera Corporation
(Nasdaq: GENR) today announced that it will implement a plan to conserve
existing cash resources in order to maintain the ability to pursue business
development strategies for trodusquemine (MSI-1436), the first-in-class,
highly selective inhibitor of PTP1B and Genaera's lead drug candidate for the
treatment of type 2 diabetes and obesity, and explore strategic alternatives.
The Company will also actively seek ways to monetize the anti-IL9 antibody
(MEDI-528) and pexiganan programs.

The plan will reduce operating expenditures leaving cash resources available
for strategic deployment and result in an approximate 80 percent reduction in
headcount by May 1, 2009.

"We believe it is prudent to take all appropriate measures to conserve
existing capital while weighing our options going forward," commented Jack
Armstrong, President and Chief Executive Officer of Genaera.

Genaera estimates that it will incur restructuring charges of approximately
$1.3 million in the second quarter of 2009 associated with the reduction in
force. As of December 31, 2008, Genaera had cash, cash equivalents and
short-term investments of approximately $8.1 million.

About Genaera
Genaera Corporation is developing trodusquemine (MSI-1436), for type 2
diabetes and obesity currently in phase 1 clinical testing and has a fully
out-licensed partnership with MedImmune, Inc. that is in phase 2 clinical
testing in asthma. For further information, please see our website at
www.genaera.com.

This announcement contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 that are subject to risks
and uncertainties, known and unknown. Forward-looking statements reflect
management's current views and are based on certain expectations and
assumptions. You may identify some of these forward-looking statements by the
use of words in the statements such as "anticipate," "believe," "continue,"
"develop," "expect," "plan" and "potential" or other words of similar meaning.
Genaera's actual results and performance could differ materially from those
currently anticipated and expressed in these and other forward-looking
statements as a result of a number of risk factors, including, but not limited
to the risks and uncertainties discussed in Genaera's filings with the U.S.
Securities and Exchange Commission, all of which are available from the
Commission in its EDGAR database at www.sec.gov as well as from other sources.
You are encouraged to read these reports. Given the uncertainties affecting
development stage pharmaceutical companies, you are cautioned not to place
undue reliance on any such forward-looking statements, any of which may turn
out to be wrong due to inaccurate assumptions, unknown risks, uncertainties or
other factors. Genaera does not intend (and it is not obligated) to publicly
update, revise or correct these forward-looking statements or the risk factors
that may relate thereto.

SOURCE Genaera Corporation

Investor Relations, Genaera Corporation, +1-610-941-5675; or Media, Shirley
Chow, Porter Novelli Life Sciences, +1-212-601-8308, schow@pnlifesciences.com