Transposagen Biopharmaceuticals, Inc. Approved for KY High Tech Investment Pool Funds

Lexington, Kentucky, December 12, 2008 – Transposagen Biopharmaceuticals, Inc., based in Lexington, KY, has announced today that it is has been approved for up to $325,000 in the form of a forgivable loan from the Kentucky High-Tech Investment Pool, which is administered by the Cabinet for Economic Development’s Department of Commercialization and Innovation (DCI). The funding will be used to purchase laboratory equipment, fit up leased laboratory space, and obtain protection for the company’s intellectual property.

Transposagen has developed a novel technology, based on mobile DNA elements, to generate laboratory animals with an accelerated rate of random gene mutations in germ cells. The company’s initial products will be MutaRatTM Knockout Rat Models, laboratory rats with single gene disruptions to mimic human disease. These models are used for drug discovery and development research. Producing knockouts involves engineering an organism to carry a gene that has been rendered inoperative (“knocked out” of the organism). Researchers can draw inferences about the gene’s function from the differences between the knockout organism and normal organisms.

“DCI’s award will enable Transposagen to grow well-paying biotech jobs in Lexington at a faster pace,” said Dr. Eric Ostertag, CEO of Transposagen Biopharmaceuticals, Inc. “We anticipate adding a minimum of 13 full-time, high-tech and technical support jobs at an average salary of approximately $57,500 by the end of 2012.”

Transposagen has received $2.8 million in grant funding and other awards since 2005 for its research and development work. This includes previous grants from the National Institutes of Health and other DCI awards.

About Transposagen Biopharmaceuticals:

Transposagen Biopharmaceuticals is a privately held biotechnology company with its headquarters in Lexington, KY. The company is dedicated to providing unique animal models of human diseases for drug discovery and development. The production of animal models is a $1.2 billion/year market and is expected to grow 12% annually through 2010. For more information, visit http://www.transposagenbio.com.