Arrowhead Provides Additional Funding for Nanotech Research

Arrowhead Provides Additional Funding for Nanotech Research

PASADENA, Calif. — Arrowhead Research Corporation (Nasdaq:ARWR)(Nasdaq:ARWRW) announced today that it will provide approximately $100,000 in additional funding to Dr. Patrick Collier and his team of nanotech researchers at the California Institute of Technology (“Caltech”) over the next four year period.

Since September 2003, Arrowhead has funded research led by Dr. Collier in exchange for the option to exclusively license intellectual property generated through the research. The Collier group is developing new technologies that could enable the control of individual molecules for revolutionary devices and systems in the life sciences and electronics industries. In 2004, Collier’s team filed five provisional patent applications that Arrowhead has the option to license.

Recently, Collier’s team announced a new technique to pattern biological molecules on previously inaccessible or difficult to pattern surfaces. (Nano Lett. 2004, 4, 2171). This invention could lead to a better understanding of biomolecular interactions as well as development and manufacture of nanoscale diagnostic devices, data storage systems, and molecular-cascade logic devices.

In another project, the group is constructing “nanoelectrodes” integrated on scanning probes. A key invention related to this research was also announced in Nano Letters. (Nano Lett. 2004, 4, 1873). If successful, new classes of scanned probes consisting of superconducting nanosensors could be used for single molecule sensing and molecular electronics.

Commenting on the funding decision, Arrowhead President R. Bruce Stewart stated, “Dr. Collier made several significant breakthroughs in nanotechnology this year. We are very excited about the intellectual property he has generated and believe that he will continue to make pioneering discoveries in the field.”

About Arrowhead Research Corporation

Arrowhead Research is a diversified, development stage nanotechnology company structured to bring together an innovative mix of technologies in the areas of healthcare, semiconductors and manufacturing processes, as well as some of the most respected minds in this dynamic field. There are three strategic components to Arrowhead’s business model:

–The Commercialization Divisions: Arrowhead forms or acquires majority-owned subsidiary companies pursuing products based on nanotechnology in high-growth technology markets.

–The Research Program: Arrowhead funds nanoscience research at universities in exchange for exclusive rights to license the technology.

–The IP Toolbox: Arrowhead acquires, licenses, and sublicenses intellectual property in nanotechnology.

Arrowhead Research operates three majority-owned subsidiary companies:

–Aonex Technologies, Inc., developing and commercializing semiconductor nanomaterial technology.

–Insert Therapeutics, Inc. which is developing and commercializing a proprietary drug delivery system.

–Nanotechnica, Inc., formed to develop capabilities for mass-production of a variety of different nanoscale devices and systems.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including the recent economic slowdown affecting technology companies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. Our Registration Statement on Form S-3, Annual Report on Form 10-K and 10-K/A, recent and forthcoming Quarterly Reports on Form 10-Q and 10-Q/A, recent Current Reports on Forms 8-K and 8-K/A, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

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