ARC Pharmaceuticals Inc. Study Presented at ECVS Shows ARCAD(TM) Instillate Decreases Surgical Adhesions in Foals

VANCOUVER, June 30 /PRNewswire/ - ARC Pharmaceuticals Inc. today announced efficacy data from a preclinical study of ARCAD(TM) Instillate in the prevention of surgical adhesions. Data were presented at the Annual Scientific Meeting of the European College of Veterinary Surgeons (ECVS) in Dublin, June 28-30, 2007.

In this preclinical efficacy study, foals were treated with either ARCAD(TM) Instillate or control instillate. Results showed that animals treated with ARCAD(TM) Instillate had a 64% decrease in the number of adhesions and a 74% decrease in the severity of adhesions compared to control instillate. The investigators concluded that the use of ARCAD(TM) Instillate was well tolerated and effective in the prevention of surgical adhesions.

The study was led by Dr. Ludovic Boure, Associate Professor of the Ontario Veterinary College at the University of Guelph. "Even with perfect surgical technique the prevention of post-surgical adhesions remains a major challenge following equine abdominal surgeries," said Dr. Boure. "ARCAD(TM) Instillate was easily and quickly instilled into the abdomen and was an effective preventative treatment for experimentally induced abdominal adhesions in pony foals."

"The efficacy data obtained by Dr. Boure's research team are very encouraging," said Dr. Chris Springate, President and CEO of ARC. "The significant reduction in both the number and severity of adhesions observed following the use of ARCAD(TM) instillate in this preclinical study reinforces data previously obtained in other preclinical models of surgical adhesions using ARCAD(TM) Instillate. Together, these data help validate the potential for the use of ARCAD(TM) Instillate in humans following appropriate clinical trials and regulatory approval."

Funding for the preclinical study was supplied by the Ontario Ministry of Agriculture, Food and Rural Affairs and ARC Pharmaceuticals Inc.

About ARCAD(TM) technology - The key component of ARCAD(TM) Instillate is a fucan known as fucoidan. Fucoidan is a naturally occurring polysaccharide and is extracted from seaweed or brown marine algae. ARC has purified and incorporated fucoidan into the Company's proprietary lead product candidate, ARCAD(TM) Instillate, for the prevention of surgical adhesions. ARC has also commenced exploration of the use of the ARCAD(TM) technology in other disease indications and has formulated ARCAD(TM) as a gel and as a film.

About ARC Pharmaceuticals Inc. - ARC Pharmaceuticals Inc. is developing innovative medical products for the prevention and treatment of surgical adhesions, a major complication in a high proportion of common surgical procedures. Further potential opportunities exist for the technology in the management of arthritis and psoriasis.

Statements contained in this press release that are not based on historical fact, including without limitation statements containing the words "will", "plans", "could", "may", "expects", "intends", "anticipates", "continue", "estimate", "potential" and similar expressions constitute "forward-looking statements". All such statements are made pursuant to the "safe harbor" provisions of applicable securities legislation. Forward-looking statements may involve without limitation comments with respect to the Company's research and development and commercialization objectives including product candidates for surgical adhesions, arthritis and psoriasis, intellectual property including patents, and business strategies and objectives. Forward-looking statements involve known and unknown risks and uncertainties including risks and uncertainties beyond the Company's control, which may cause the actual results to be materially different from any future results expressed or implied by forward-looking statements. Given these risks, uncertainties and assumptions, readers are cautioned not to place undue reliance on forward-looking statements and the Company claims not to be under any obligation to update or announce the result of any revisions to any forward-looking statements to reflect future results.

CONTACT: Chris Springate, President and CEO, ARC Pharmaceuticals Inc., Tel: (604) 222-9577, Fax: (604) 222-9578, cspringate@arcpharma.com, www.arcpharma.com

CONTACT: Chris Springate, President and CEO, ARC Pharmaceuticals Inc.,Tel: (604) 222-9577, Fax: (604) 222-9578, cspringate@arcpharma.com,www.arcpharma.com