Lpath Temporarily Suspends Dosing of iSONEP in Clinical Trials Due to cGMP Compliance Issues at Contract Fill/Finish

SAN DIEGO, CA, Jan 26 (MARKET WIRE) --
Lpath, Inc. (OTCBB: LPTN), the industry leader in lipidomics-based
antibody therapeutics, has temporarily suspended dosing patients in its
PEDigree and Nexus trials. In these trials, iSONEP(TM) is being tested as
a treatment for wet AMD (Nexus) and a related complication called
Pigmented Epithelial Detachment (PEDigree).

The company has taken this action because it learned from the FDA that
the company's fill/finish contractor, Formatech, Inc., was not in
compliance with FDA's current Good Manufacturing Practice (cGMP)
requirements during the period that the iSONEP clinical vials were
filled. Accordingly, even though Lpath believes it has taken appropriate
steps to oversee Formatech's manufacturing in order to ensure product
quality, it has suspended dosing as a precaution to ensure the continued
safety of all patients in its clinical trials.

iSONEP was well tolerated by all patients in the Phase 1 trial and by all
patients thus far in the PEDigree and Nexus trials. The company has
received no claims raising safety concerns regarding iSONEP.

Lpath has initiated the process to manufacture additional drug substance
and has identified an alternate fill/finish contractor. Lpath plans to
resume dosing in both clinical trials within four to six months subject
to any necessary regulatory approvals. The FDA has agreed to respond
within 30 days upon Lpath's request to reinstate dosing.

Scott Pancoast, Lpath's president and chief executive officer, commented:
"While we are disappointed to learn about these FDA concerns, we believe
this issue does not affect the prospects for value creation by our
PEDigree and Nexus studies."

"We continue to expect that the resolution of RPE detachments that we saw
in each of the two patients in our Phase 1 trial will be repeated in our
PEDigree study, and that the significant reductions in lesion size that
we also saw in the Phase 1 trial will be repeated in the Nexus study,"
added Pancoast.

Conference Call

Lpath will hold a conference call tomorrow (Friday, January 27, 2012) at
8:45 a.m. Eastern time to discuss today's news and the company's outlook
for 2012. President and CEO Scott Pancoast will host the call, with a
question-and-answer session following management's presentation.

Dial-in number: 1-877-941-2068
International dial-in: 1-480-629-9712

Conference ID number: 4510816

Internet simulcast and replay: http://viavid.net/dce.aspx?sid=00009327

Please call the conference telephone number 5-10 minutes prior to the
start time. If you have any difficulty connecting with the conference
call, please contact Liolios Group at 1-949-574-3860.

A telephone replay of the call will be available after 11:45 a.m. Eastern
time and until February 27, 2012.

Toll-free replay number: 1-877-870-5176
International replay number:
1-858-384-5517
Replay pin number: 4510816

About Lpath
San Diego-based Lpath, a therapeutic antibody company, is
the category leader in lipidomics-based antibody therapeutics, an
emerging field of medicine that targets bioactive signaling lipids for
treating a wide range of human disease. Lpath's ImmuneY2(TM)
drug-discovery engine has the unique ability to generate therapeutic
antibodies that bind to and inhibit bioactive lipids that contribute to
disease. The company has developed three drug candidates, one of which
(iSONEP(TM) for wet AMD) has initiated mid-stage clinical trials and
another of which (ASONEP(TM) for cancer) will soon begin mid-stage
clinical trials. The third candidate is a pre-clinical anti-LPA antibody,
which has shown efficacy in animal models of pain, fibrosis, and
traumatic brain injury. Lpath entered into an agreement with Pfizer
(NYSE: PFE) in 2010 that provides Pfizer an exclusive option for a
worldwide license to develop and commercialize iSONEP. For more
information, visit www.Lpath.com.

About Forward-Looking Statements
The Company cautions you that the
statements included in this press release that are not a description of
historical facts are forward-looking statements. These include statements
regarding: the eventual commercial viability of the Company's drug
programs, the timeline to recommence the iSONEP clinical trials, and the
eventual revenues that the Company would attain if the drug eventually
gets approved. Actual results may differ materially from those set forth
in this press release due to the risks and uncertainties inherent in the
Company's business, including, without limitation: the results of and the
time to complete any future clinical trials for iSONEP may not be
favorable and the Company may never receive regulatory approval for
iSONEP; and the Company may not be able to secure the funds necessary to
support its clinical trial and product development plans. More detailed
information about the Company and the risk factors that may affect the
realization of forward-looking statements is set forth in the Company's
filings with the Securities and Exchange Commission, including its Annual
Report on Form 10-K and its Quarterly Reports on Form 10-Q filed with the
SEC. Such documents may be read free of charge on the SEC's web site at
www.sec.gov. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof. All
forward-looking statements are qualified in their entirety by this
cautionary statement and the Company undertakes no obligation to revise
or update this press release to reflect events or circumstances after the
date hereof. This caution is made under the safe harbor provisions of
Section 21E of the Private Securities Litigation Reform Act of 1995.

Lpath, Inc.
Scott R. Pancoast
President & CEO
(858) 926-3200
spancoast@Lpath.com

Lpath Investor Relations
Liolios Group, Inc.
(949) 574-3860
info@liolios.com
Ron Both: ron@liolios.com
Geoffrey Plank: geoffrey@liolios.com

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