Rexahn Pharmaceuticals Provides Second Quarter 2009 Business Update

ROCKVILLE, Md.--(Business Wire)--
Rexahn Pharmaceuticals, Inc. (NYSE Amex: RNN), a clinical stage pharmaceutical
company commercializing potential best in class oncology and CNS therapeutics,
today provided an update on the company`s business for the 2009 second quarter.

Key milestones achieved during the quarter include:

* Formation of a development and commercialization partnership with a Top 20
pharmaceutical firm to develop Rexahn`s novel anti-cancer compound, RX-3117;
* Positive preliminary results for sexual dysfunction drug Zoraxel;
* Completion of Phase IIa patient enrollment for anxiety and depression drug
Serdaxin;
* Finalization of licensing partnership with Korea Research Institute of
Chemical Technology ("KRICT") to develop new anti-cancer drugs; and
* Completion of Registered Direct Offering of common stock and warrants to a
single institutional investor, with the Company receiving gross proceeds of $3
million cash, and the investor also receiving warrants to buy additional shares
of common stock for $7 million.

Commenting on the company`s progress, Dr. Chang Ahn, Rexahn`s Chairman and CEO,
said, "I am very pleased with the achievements that we have made over the
quarter, as our team executed our business plan. In many ways this was a break
out quarter for Rexahn, as reflected by achievement of several milestones."

Rexahn has three highly differentiated cancer and CNS drug candidates in Phase
II clinical trials, in addition to a robust pipeline of pre-clinical compounds.
We have been very pleased by the interest that these preclinical compounds have
been receiving, as they represent the future of our company, and reduce our risk
exposure by providing ample diversity in our pipeline. The commercial potential
of our pre-clinical compounds is reflected by the partnering agreement entered
into with a Top 20 pharmaceutical company to develop Rexahn`s novel anti-cancer
compound, RX-3117.

"This development in concert with the licensing-in partnership entered into with
KRICT to develop a synthetic process for Quinoxalines compounds is a major step
forward for Rexahn, and will further enrich our growing pre-clinical drug
pipeline devoted to new therapies that change treatment paradigms in cancer and
CNS."

Dr. Ahn continued, "In addition to the progress made by our preclinical
candidates, our drugs currently in clinical trials have also made steady
progress. In particular, preliminary reports released from the Phase IIa
clinical study for our sexual dysfunction drug candidate, Zoraxel, found that
treated subjects demonstrated improved erectile function and significant
improvement in the quality of life measures. Underscoring this development, an
animal study conducted by Utrecht University in The Netherlands further
demonstrated Zoraxel as a potential new-class of therapeutic for the effective
treatment of sexual dysfunction. Both of these events represent significant
milestones in the development of Zoraxel."

In other fronts, Rexahn`s anxiety and depression drug, Serdaxin, completed
patient enrollment during the quarter. Of note, the prestigious Journal of
Pharmacology, Biochemistry and Behavior published results of an animal study
revealing that Serdaxin is highly potent, has a unique profile, and has
anti-anxiety activity unlike any of the commonly prescribed drugs used to treat
anxiety disorders."

"I am very excited with the progress we have made and I look forward to
continuing to communicate our progress as we get closer to bringing our
compounds to the market," concluded Dr. Ahn.

During the quarter, the Company improved its financial position, completing a
Registered Direct Offering of common stock and warrants. The Company plans to
use the proceeds from the offering for research and development and general
corporate purposes. As of June 30, 2009 cash, cash equivalents and marketable
securities were $4.2 million compared to $3.4 million at December 31, 2008.

About Rexahn Pharmaceuticals, Inc.

Rexahn Pharmaceuticals is a clinical stage pharmaceutical company dedicated to
commercializing first in class and market leading therapeutics for cancer, CNS
disorders, sexual dysfunction and other unmet medical needs. Rexahn currently
has three drug candidates in Phase II clinical trials - Archexin, Serdaxin, and
Zoraxel - all potential best in class therapeutics, and a robust pipeline of
preclinical compounds to treat multiple cancers and CNS disorders. Rexahn also
has key R&D programs in cancer nano-medicines and multi-target aimed ligands
drug discovery technologies. For more information, please visit www.rexahn.com.

Safe Harbor

This press release contains forward-looking statements. Rexahn's actual results
may differ materially from anticipated results, and expectations expressed in
these forward-looking statements, as a result of certain risks and
uncertainties, including Rexahn's lack of profitability, and the need for
additional capital to operate its business to develop its product candidates;
the risk that Rexahn's development efforts relating to its product candidates
may not be successful; the possibility of being unable to obtain regulatory
approval of Rexahn's product candidates; the risk that the results of clinical
trials may not be completed on time or support Rexahn's claims; demand for and
market acceptance of Rexahn's drug candidates; Rexahn's reliance on third party
researchers and manufacturers to develop its product candidates; Rexahn's
ability to develop and obtain protection of its intellectual property; and other
risk factors set forth from time to time in our filings with the Securities and
Exchange Commission. Rexahn assumes no obligation to update these
forward-looking statements.

KCSA Strategic Communications
Jeffrey Goldberger, 212-896-1249
jgoldberger@kcsa.com
or
Yemi Rose, 212-896-1233
yrose@kcsa.com
or
Base Pair Communications
Constantine Theodoropulos, 617-401-3116
constantine@basepaircomm.com

Copyright Business Wire 2009