Kineta Acquires Novel Drug Candidates from Airmid for Potential Treatment of Multiple Sclerosis, Type 1 Diabetes and other Autoimmune Diseases

First Drug Derivative of Caribbean Sea Anemone Peptide Scheduled for Clinical
Trials in 2010
SEATTLE--(Business Wire)--
Kineta, Inc. of Seattle and Airmid Incorporated of Redwood City, CA jointly
announce an agreement in which a Kineta subsidiary has acquired exclusive
commercial rights to a portfolio of novel therapeutic compounds from Airmid. The
array of compounds holds extraordinary potential for the treatment of multiple
sclerosis, type 1 diabetes mellitus and numerous other autoimmune diseases.

"This transaction is a significant milestone for Airmid. It places our peptidic
Kv1.3 blockers into the very capable hands of Kineta`s drug development team,
sets Airmid on a path to provide substantial return-on-investment for our
shareholders, and provides funding to enhance the value of Airmid`s retained
assets," said George Miljanich, Ph.D., CEO of Airmid. Under the terms of the
deal, Airmid will receive upfront payments, development, regulatory and
commercial milestones as well as sales royalties.

Airmid founder, K. George Chandy, MD, Ph.D., also applauded the announcement:
"Kineta possesses both the scientific capacity and the track record of success
necessary to advance these promising therapeutics toward the goal of conquering
multiple devastating autoimmune diseases."

Following today`s agreement, Kineta One, LLC (a subsidiary of Kineta, Inc.) will
aggressively pursue additional preclinical studies on a lead compound. The
company intends to file an investigational new drug (IND) application with the
FDA and begin clinical trials in 2010. "We are very excited to move forward. Dr.
Chandy is an extraordinary scientist who has made an exceptional contribution to
the scientific field of autoimmune disease. He will remain an integral advisor
to our scientific team," said Kineta President and CEO, Charles Magness, Ph.D.

Dr. Chandy, Airmid co-founder Dr. Michael Cahalan and their colleagues at the
University of California have spent more than two decades identifying and
characterizing ion channels and their role in immune cell function under normal
conditions and in autoimmune diseases. Dr. Chandy and his collaborators-Dr.
Michael Pennington, Dr. Christine Beeton, Dr. Heike Wulff and Dr. Ray Norton-are
credited with discovering an array of novel autoimmune compounds which were
later patented. Together they founded Airmid Incorporated. A professor of
physiology and biophysics at the University of California, Irvine, Dr. Chandy is
an internationally recognized authority on mechanisms of autoimmunity and the
role of ion channels in autoimmune disease.

The novel class of compounds acquired by Kineta One, LLC today includes potent
and highly specific Kv1.3 potassium channel blockers derived from venom of the
Caribbean sea anemone. They are designed to suppress activation of effector
memory T cells which are important mediators of inflammation and tissue damage
in MS, type 1 diabetes and other autoimmune diseases. These compounds have been
shown to significantly reverse disease in animal models of multiple sclerosis
and rheumatoid arthritis, and also have potential against a number of other
autoimmune diseases controlled by effector memory T cells. Animal models also
have demonstrated that efficacy is achieved without the generalized
immunosuppression that occurs in competing therapies.

For more information on today`s announcement, or to schedule interviews, contact
Meg O`Conor moconor@kinetabio.com 206-251-8638.

Kineta, Inc. is a Seattle-based privately held biotechnology company
specializing in clinical advancement of drugs that modulate and enhance the
human immune system. Our world class scientists are pioneers, developing
life-changing classes of drugs that harness the power of the immune system to
fight disease. Kineta seeks to improve the lives of millions of people suffering
from autoimmune and viral diseases. Our progressive business model focuses on
targeting unmet medical needs and on rapid achievement of important clinical
milestones. Through careful management of capital, Kineta aims at a strong
return for investors. For more information on Kineta, Inc., visit our website,
www.Kinetabio.com.

Airmid Inc. is a privately held pharmaceutical company based in Redwood City,
California. Airmid is focused on developing its novel potassium ion channel
blockers as safer and more effective medicines for a variety of autoimmune
diseases that are inadequately treated by current therapies. These diseases
include multiple sclerosis, psoriasis, diabetes, and rheumatoid arthritis. For
more information on Airmid, visit our website, www.Airmid.com.

This press release contains forward-looking statements, including without
limitation, all statements related to plans, future events and financial
performance. Forward-looking statements involve risks and uncertainties, which
could cause actual results to vary materially from those expressed in or
indicated by the forward-looking statements. The companies` actual results and
timing of events could differ materially, including efficacy and demand for our
products, our ability to manage our costs, competition from other drug
development companies, and our ability to recruit and maintain senior management
and other key personnel. The companies` stakeholders are cautioned not to place
undue reliance on these forward-looking statements, which reflect only an
analysis and speak only as of the date of this press release. The companies
undertake no obligation to revise or update any forward-looking statements to
reflect events or circumstances after the date hereof.

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Kineta, Inc.
Meg O`Conor, 206-251-8638
moconor@kinetabio.com

Copyright Business Wire 2009