Cardium Therapeutics, Inc. And Aries Ventures Announce Merger, Completion Of $30 Million Financing And Strategic Acquisition Of Cardiovascular Product Portfolio

SAN DIEGO, Oct. 20 /PRNewswire-FirstCall/ -- Privately held Cardium Therapeutics, Inc. today announced its merger with a specially formed subsidiary of Aries Ventures Inc. . Cardium Therapeutics and Aries Ventures (the Company) will be headquartered in San Diego and will continue to trade under the Aries Ventures name and ticker symbol until the completion of its corporate name change to Cardium Therapeutics, Inc. In addition to the merger and equity financing, the Company also announced the strategic acquisition of a portfolio of cardiovascular product candidates from Schering AG Germany.

(Logo: http://www.newscom.com/cgi-bin/prnh/20051018/CARDIUMLOGO )

"Today's announcement represents a substantial milestone for our stockholders, and sets the stage for us to pursue our business plan aggressively with substantial capital resources," said Christopher J. Reinhard, Chairman and Chief Executive Officer of Cardium. "With the proceeds from this equity offering, we have acquired a portfolio of cardiovascular growth factor therapeutics from Schering AG Germany, and we can now move forward to advance the leadership position of our later-stage product candidate, Generx(TM), a DNA-based cardiovascular biologic designed for the treatment of patients with recurrent angina due to coronary artery disease." Mr. Reinhard, who in connection with the merger was also appointed Chairman and CEO of Aries Ventures, added that "the Company plans to immediately seek approval from its stockholders to reincorporate in Delaware and to change its name to Cardium Therapeutics, Inc. Following completion of those changes, Cardium will apply for its common stock to be listed on the Nasdaq Stock Market or the American Stock Exchange."

In preparation for and in connection with its merger with Cardium, Aries announced a one-time cash dividend of approximately $0.43 per share to its shareholders of record holding approximately 2 million shares immediately prior to the close of the merger, which is to be distributed within 7 days thereafter. After payment of the dividend, and at the time of the merger, Aries had $1.5 million in cash which was retained under the terms of the merger.

In connection with the financing, the combined Company received over $28.5 million from the close of a private offering of its common stock for $1.50 per share, providing over $30 million of total capital. Following the merger and private placement, the Company now has approximately 29.2 million shares of common stock outstanding. Pursuant to the terms of the private placement, the Company has undertaken to file a registration statement to register the potential resale by purchasing stockholders of the common shares issued in the private placement.

About the Company

The Company, now headquartered in San Diego, is focused on interventional cardiology and the development and commercialization of DNA-based, myocardial- derived, growth factor therapeutics which are being designed as treatments for coronary artery disease and/or heart attack. The Company's later-stage product candidate, Generx(TM), is designed as a one-time angiogenic therapy for administration by interventional cardiologists using a standard cardiac catheter to biologically stimulate the natural growth of collateral circulation that supplies blood flow to the heart muscle (myocardium). Generx is being developed for an increasing population of patients having recurrent angina who remain in need of further treatment despite interventional cardiology procedures, coronary artery bypass surgery and continuing drug therapy, as well as for patients seeking alternatives to surgical and mechanical interventions within the heart.

Generx has been evaluated in human clinical studies involving 663 patients (including 450 Generx-treated patients and 213 controls) in four multi-center, double-blinded, placebo-controlled clinical studies. These studies have been conducted at over 70 U.S., Canadian, European and South American medical centers. Although additional studies are required, we believe Generx is already one of the most widely studied and clinically most advanced DNA-based cardiovascular angiogenic growth factor therapeutics in the world.

Generx and the related cardiovascular proprietary technology platform was pioneered by Collateral Therapeutics, a San Diego-based biotechnology company of which Mr. Reinhard was a founder and CEO. In 1996, Schering AG Germany and Collateral Therapeutics entered into a strategic partnership to commercially develop angiogenic DNA-based therapeutics including Generx. In 2002, based on the advancing clinical progression of Generx, Schering AG acquired Collateral Therapeutics. Since 1996, it is estimated that at least $200 million has been invested to acquire and develop technology rights, and to conduct pre-clinical research, clinical studies and other activities relating to the commercialization of Generx.

Forward-Looking Statements

Except for statements of historical fact, the matters discussed in this press release are forward looking and reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond our control and may cause actual results to differ materially from stated expectations. For example, there can be no assurance that required clinical trials will be successful, necessary regulatory approvals will be obtained or the proposed treatments will prove to be safe or effective. Actual results may also differ substantially from those described in or contemplated by this press release due to risks and uncertainties that exist in our operations and business environment, including, without limitation, our limited experience in the development of DNA-based cardiovascular therapeutics, our dependence upon proprietary technology, our history of operating losses and accumulated deficits, our reliance on collaborative relationships, current and future competition, as well as other risks described from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to release publicly the results of any revisions to these forward-looking statements to reflect events or circumstances arising after the date hereof.

Cardium Therapeutics(TM) and Generx(TM) are trademarks of Cardium Therapeutics, Inc.

Press / Investor Contact: Christopher J. Reinhard Chairman and Chief Executive Officer Tel: (858) 794-3420 Email: creinhard@cardiumthx.com Internet: www.cardiumthx.com

Photo: http://www.newscom.com/cgi-bin/prnh/20051018/CARDIUMLOGOCardium Therapeutics, Inc.; Aries Ventures, Inc.

CONTACT: Christopher J. Reinhard, Chairman and Chief Executive Officer,Cardium Therapeutics, Inc., +1-858-794-3420, creinhard@cardiumthx.com

Web site: http://www.cardiumthx.com/