MediQuest Therapeutics Raises $16.0 Million In Series A Financing

(Bothell, WA - 15 June 2006). MediQuest Therapeutics, Inc. a privately held biotechnology company specializing in infectious and inflammatory skin diseases and conditions, today announced the close of a $16.0 Million Series A Financing. The investors in this financing were Novo A/S, Janus, Integra Ventures and Masa Life Science Ventures. Integra Ventures in Seattle and Novo A/S of Denmark co-led the investment with Broadmark Capital serving as the placement agent. This investment will be used to fund MediQuest's current late-stage clinical trials as well as other corporate operations.

As part of the transaction, Soren Schifter of Novo A/S, Joseph K. Piper of Integra Ventures (as newly elected Chairman), and A. Sinclair Dunlop of Masa Life Science Ventures, will join the Board of Directors, which includes Dr. Frederick J. Dechow, President and CEO, and Julia Brown, former Executive Vice President of Amylin Pharmaceuticals. The new additions to the Board will occupy the Board seats previously held by Dr. Michael K. Brawer, Thomas C. Graham and John C. Rosling.

"We are pleased to announce this major financing with these premier venture investors. This funding validates the commercial opportunities addressed by the MediQuest pipeline and the strength of its management team," said Dr. Dechow. "In addition, this funding will bring MediQuest's late stage products with the Topical Amphi-Matrix (TAM) delivery system closer to the commercial arena. We look forward to leveraging the experience of the new Board members and this funding to take the Company to the next level of development."

Soren Schifter adds, "Our investment in MediQuest was prompted by our assessment of the potential for its late stage clinical products. We believe MediQuest's clinical candidates have the potential for becoming first-in-class or best-in-class treatments for specific dermatologic conditions, and we look forward to participate in developing the company into the success the programs deserve. "

Joseph Piper notes, "Dr. Dechow and his team have developed a unique strategy of dermal delivery of FDA-approved actives in new formulations for new indications, which lessens the time to market, FDA risk, and systemic impact to the patient. Integra is thrilled to back such an experienced management team with a great syndicate of investors."