President Barack Obama has declared the swine flu outbreak a national emergency. The White House on Saturday said Obama signed a proclamation that would allow medical officials to bypass certain federal requirements.

BioCryst's investigational H1N1 drug granted Emergency Use OK CEO Says H1N1 Flu Drug Candidate Could Propel Company Onto World Stage Who's Afraid of the Big Bad Flu?

Companies with Certified Existing Treatments for Swine Flu

Gilead Sciences, Inc. (NASDAQ:GILD) Roche Holding Ltd. (OTC:RHHBY) Product: Tamiflu (oseltamivir)GlaxoSmithKline plc (NYSE:GSK) /Biota Holdings Ltd.(ASX:BTA)Product: Relenza (zanamivir)Baxter International Inc. (NYSE: BAX) Product: A(H1N1) vaccine using its Vero cell culture technologyNovartis AG (NYSE:NVS)Product: Influenza A(H1N1) vaccine using Cell-based manufacturing technology BioCryst Pharmaceuticals,Inc. (NASDAQ:BCRX) Product: Peramivir Intravenous Sanofi-Aventis SA (NYSE:SNY) Product: Swine Flu Vaccine

Companies with Potential Treatments for Swine Flu

CEL-SCI Corporation (Amex: CVM) Product: LEAPS-H1N1 Currently Under Special Fast Track Trials Authorized by FDA

Companies with Potential Vaccines and Treatments for Swine FluBiota Holdings Ltd.(ASX:BTA) / Daiichi Sankyo Product: CS-8958Novavax, Inc. (NASDAQ:NVAX)Product: Swine Flu Vaccines using Virus-like particle (VLP) technologyInovio Biomedical Corporation (NYSE Amex:INO)Product: SynCon™ H1N1 influenza DNA vaccinesVical Incorporated(Public, NASDAQ:VICL)Product: Patented DNA delivery technologySinovac Biotech Ltd. (Amex: SVA)Product: Panflu(TM)Wyeth (NYSE: WYE) Product: PCV13 or Prevnar 13

MedImmune / AstraZeneca PLC (NYSE:AZN) Product: needle-free, nasal spray swine flu vaccine by using Live Attenuated Influenza Vaccine (LAIV) technology

Companies with Adjuvantsfor Swine Flu VaccinesBioSante Pharmaceuticals, Inc. (NASDAQ: BPAX)Product: BioVant™ H1N1 adjuvantHemispherx Biopharma (AMEX:HEB)Product: AmpligenAntigenics, Inc. (NASDAQ:AGEN) Product: QS-21 StimulonOther Technologies Which Combat H1N1Oculus Innovative Sciences, Inc. (NASDAQ:OCLS)Product: Microcyn® Technology platformAethlon Medical, Inc. (OTC:AEMD)Product: Hemopurifier®MedaSorb Technologies (OTC BB:MSBT.OB)Product: CytoSorb(TM)

The declaration that Obama signed allows Health and Human Services chief Kathleen Sebelius to bypass federal rules when opening alternative care sites, such as offsite hospital centers at schools or community centers, if needed.

Hospitals could modify patient rules — for example, requiring them to give less information during a hectic time — to quicken access to treatment, with government approval.

The declaration, which the White House announced Saturday, allows HHS in some cases to let hospitals relocate emergency rooms offsite to reduce flu-related burdens and to protect noninfected patients.

Administration officials said the declaration was a pre-emptive move designed to make decisions easier when they need to be made. Officials said this was not in response to any single development on an outbreak that has lasted months and has killed more than 1,000 people in the United States.

It was the second of two steps needed to give Sebelius extraordinary powers during a crisis. On April 26, the administration declared swine flu a public health emergency, allowing the shipment of roughly 12 million doses of flu-fighting medications from a federal stockpile to states in case they eventually needed them. At the time, there were 20 confirmed cases in the U.S. of people recovering easily. There was no vaccine against swine flu, but the CDC had taken the initial step necessary for producing one.

"As a nation, we have prepared at all levels of government, and as individuals and communities, taking unprecedented steps to counter the emerging pandemic," Obama wrote in the declaration.

Because of vaccine production delays, the government has backed off initial, optimistic estimates that as many as 120 million doses would be available by mid-October. As of Wednesday, only 11 million doses had been shipped to health departments, doctor's offices and other providers, according to the Centers for Disease Control and Prevention officials said.

The government now hopes to have about 50 million doses of swine flu vaccine out by mid-November and 150 million in December.

The flu virus has to be grown in chicken eggs, and the yield hasn't been as high as was initially hoped, officials explained.

In Massachusetts, the Boston Globe is reporting that for the first time this fall, public health authorities described the state’s influenza outbreak as widespread, the highest category on the scale of disease spread. In a weekly surveillance report, officials said they had seen a “dramatic increase in influenza-like illnesses over the past few weeks’’ compared with early fall levels in previous years.

“We had always been predicting this,’’ Dr. Lauren Smith, medical director of the state Department of Public Health, said yesterday. “We knew the H1N1 [swine flu] virus was going to be increasing. We didn’t know when, but now we do. It’s here.’’

It was just six months ago that the U.S. Centers for Disease Control and Prevention reported that two children in California had developed a respiratory illness never before seen in humans, referring to the infection as "swine flu" in its Morbidity and Mortality Weekly Report.

Flu activity is now widespread in 46 states. Nationwide, visits to doctors for influenza-like-illness are increasing steeply and are now higher than what is seen at the peak of many regular flu seasons. In addition, flu-related hospitalizations and deaths continue to go up nation-wide and are above what is expected for this time of year.

Below is a summary of the most recent key indicators:

Visits to doctors for influenza-like illness (ILI) increased steeply since last week in the United States, and overall, are much higher than what is expected for this time of the year. ILI activity now is higher than what is seen during the peak of many regular flu seasons. Total influenza hospitalization rates for laboratory-confirmed flu are climbing and are higher than expected for this time of year. The proportion of deaths attributed to pneumonia and influenza (P&I) based on the 122 Cities Report has increased and has been higher than what is expected at this time of year for two weeks. In addition, 11 flu-related pediatric deaths were reported this week; 9 of these deaths were confirmed 2009 H1N1, and two were influenza A viruses, but were not subtyped. Since April 2009, CDC has received reports of 95 laboratory-confirmed pediatric 2009 H1N1 deaths and another 7 pediatric deaths that were laboratory confirmed as influenza, but where the flu virus subtype was not determined. Forty-six states are reporting widespread influenza activity at this time. They are: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming. This many reports of widespread activity are unprecedented during seasonal flu. Almost all of the influenza viruses identified so far are 2009 H1N1 influenza A viruses. These viruses remain similar to the virus chosen for the 2009 H1N1 vaccine, and remain susceptible to the antiviral drugs oseltamivir and zanamivir with rare exception.

Last week the CDC reported that influenza activity increased dramatically in the U.S.

4,855 (37.5%) specimens tested by U.S. World Health Organization (WHO) and National Respiratory and Enteric Virus Surveillance System (NREVSS) collaborating laboratories and reported to CDC/Influenza Division were positive for influenza. All subtyped influenza A viruses being reported to CDC were 2009 influenza A (H1N1) viruses. The proportion of deaths attributed to pneumonia and influenza (P&I) was above the epidemic threshold. Eleven influenza-associated pediatric deaths were reported. Nine of these deaths were associated with 2009 influenza A (H1N1) virus infection and two were associated with an influenza A virus for which subtype is undetermined. The proportion of outpatient visits for influenza-like illness (ILI) was above the national baseline. All 10 regions reported ILI above region-specific baseline levels. Forty-six states reported geographically widespread influenza activity, Guam and three states reported regional influenza activity, one state, the District of Columbia, and Puerto Rico reported local influenza activity, and the U.S. Virgin Islands did not report.

Biotech investors interested in seeing more details about these companies and a full list of their related stories can do so by typing the stock ticker symbol into the Stock Quotes box on the right side of the page.

EpiCept Corporation (Nasdaq:EPCT) announced a Nasdaq Hearings Panel has granted the Company’s request for continued listing on The Nasdaq Stock Market.

GenVec, Inc. (Nasdaq:GNVC) announced Paul H. Fischer, Ph.D., President and CEO, will present a company overview highlighting recent developments at the Merriman Curhan Ford's 6th Annual Investor Summit on Tuesday, November 10, 2009 at 9:20 am EST at Sofitel Hotel in New York, NY.

Enzon Pharmaceuticals, Inc. (Nasdaq:ENZN) announced its third quarter 2009 financial results. For the three months ended September 30, 2009, Enzon reported a net income of $0.1 million or break-even on a diluted per-share basis, as compared to a net loss of $2.0 million or $0.05 on a diluted per-share basis for the third quarter of 2008.

ZIOPHARM Oncology, Inc. (Nasdaq:ZIOP) announced Jonathan Lewis, MD, PhD, Chief Executive Officer, will present at the 6th Annual Merriman, Curhan, Ford Investor Summit on Tuesday, November 10, 2009 at 12:20 pm ET at the Soffitel Hotel in New York, NY. Dr. Lewis will provide an overview of the Company and its clinical development programs.

Teva Pharmaceutical Industries Ltd. (NASDAQ:TEVA) reported results for the quarter ended September 30, 2009.

Aetna (NYSE:AET) is providing free electronic roster billing for pharmacies and other non-traditional providers to use when submitting claims for the administration of the H1N1 flu vaccine.

Stem Cell Therapy International Inc. (OTC:SCII) and its soon to be subsidiary, Histostem Ltd. of South Korea ("Histostem"), announced they have entered into a definitive agreement for up to a $5 million investment commitment with Socius Life Science Capital Group, LLC.The Company's plan is to have funds available no later than December 31, 2009 and use the proceeds for various growth initiatives, including the launch of its stem cell based facial cream, the initiation of clinical trials, maintaining and advancement of current GMP facility as well as ongoing working capital and general corporate purposes.

NanoLogix, Inc. (OTC:NNLX), announces the company has recently filed BNP™ (BioNanoPore) national patent applications in China, Japan, India, Brazil, Russia and the EU.

Sinovac Biotech Ltd. (NYSE:SVA), a leading developer and provider of vaccines in China, announced it will voluntarily transfer its stock exchange listing from the NYSE Amex to the NASDAQ Global Market.

Solos Endoscopy, Inc. (OTC:SNDY) is pleased to announce the Company has received purchase orders for its MammoView(TM) line of surgical endoscopy instruments from various hospitals under Catholic Health Initiatives, Littleton, CO.

Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) announced the U.S. Patent and Trademark Office has issued U.S. Patent No. 7,612,199 (the ‘199 patent) entitled “Polymorphic Forms Alpha, Beta, and Gamma of Rifaximin”.

Cubist Pharmaceuticals, Inc. (NASDAQ:CBST) announced Robert Perez, EVP and COO, will present on Wednesday, November 18, 2009 at 1:45 p.m. Eastern Time at the Lazard Capital Markets 6th Annual Healthcare Conference at the St Regis Hotel in New York City.

Merck & Co., Inc. (NYSE:MRK) and Schering-Plough Corporation (NYSE:SGP) announced they will complete their merger shortly after 4:00PM ET.

Advanced Cell Technology, Inc. (OTC:CTC) announced its Chief Executive Officer, William Caldwell, IV, presented at the BIO Europe Conference being held in Vienna, Austria.

Catalyst Health Solutions, Inc. (NASDAQ:CHSI), a pharmacy benefit management company, announced its financial results for the third quarter ended September 30, 2009.

Optigenex Inc. (OTC:OPGX), has unveiled a new information web page www.optigenex.com designed to connect with prospective corporate customers and partners in the wellness and personal care industries.

Walgreens (NYSE:WAG) executive vice president and chief financial officer Wade Miquelon will present during the Credit Suisse Annual Healthcare Conference in Phoenix on Thursday, Nov. 12, 2009 at approximately 10 a.m. MST (noon EST).

BioMimetic Therapeutics, Inc. (NASDAQ:BMTI) announced the Company plans to release its financial results for the three and nine months ended September 30, 2009, on Thursday, November 5, 2009 after the close of the market.

BIOLASE Technology, Inc. (NASDAQ:BLTI), the world's leading dental laser company, announced the launch of the Diolase 10™ Diode Laser for therapeutic applications, including temporary pain relief.

Aethlon Medical, Inc. (OTC:AEMD) announced it has initiated a collaborative biomarker discovery program with the Center for the Study of Traumatic Encephalopathy (CSTE) at Boston University School of Medicine and the Sports Legacy Institute (SLI).

ULURU Inc. (NYSE:ULU) announced it has scheduled a conference call to discuss the third quarter ended September 30, 2009 financial results and provide a general business update on Tuesday, November 17, 2009 at 9:00 a.m. Eastern Time.

CNS Response, Inc. (OTC:CNSO) reported the results of a landmark study presented by Charles DeBattista, D.M.H, M.D., at the U.S. Psychiatric and Mental Health Congress.

Salix Pharmaceuticals, Ltd. (NASDAQ:SLXP) announced the U.S. Patent and Trademark Office has issued U.S. Patent No. 7,612,199 (the ‘199 patent) entitled “Polymorphic Forms Alpha, Beta, and Gamma of Rifaximin”.

Viriathus Research LLC, an independent research firm, issued an Update Report for Viralytics Limited (OTC: VRACY), a biotechnology company which is developing therapies and drugs for the treatment of cancer in Australia.

Affymax, Inc. (Nasdaq:AFFY) announced the appointment of Hollings C. Renton to the position of chairman of the company’s board of directors effective December 1, 2009.

ZIOPHARM Oncology, Inc. (Nasdaq:ZIOP) announced Jonathan Lewis, MD, PhD, Chief Executive Officer, will present at the 6th Annual Merriman, Curhan, Ford Inventor Summit on Tuesday, November 10, 2009 at 12:20 pm ET at the Soffitel Hotel in New York, NY. Dr. Lewis will provide an overview of the Company and its clinical development programs.

Walgreens (NYSE:WAG), the nation’s largest drugstore chain and industry leader with more than 17,000 certified or licensed immunizers, will begin offering H1N1 injectable vaccines at 18 pharmacies throughout Salt Lake County Thursday.

Aethlon Medical, Inc. (AEMD), Golden Phoenix Minerals, Inc. (GPXM), and Pulmo BioTech Inc. (PLMO) were among today’s top OTC market movers. Aethlon Medical, Inc. [[AEMD.OB]], which creates diagnostic and therapeutic device solutions for infectious disease and cancer, saw its shares rise by more than 30 percent after announcing that it established Exosome Sciences, Inc. as a [...]

Aethlon Medical Releases Shareholder Letter to Discuss the Treatment of Hepatitis-C Virus (HCV)
On Wednesday June 10, 2009, 7:47 am EDT

SAN DIEGO, June 10 /PRNewswire-FirstCall/ -- Aethlon Medical, Inc., (OTC Bulletin Board: AEMD - News ) disclosed today that its Chairman and CEO, James A. Joyce has issued the following letter to shareholders.

(Logo: http://www.newscom.com/cgi- bin/prnh/20090325/LA88762LOGO-b )

To our Shareholders:

On March 25th we announced a data driven strategy to improve Hepatitis-C virus (HCV) cure rates by combining the benefit of our Hemopurifier® with the interferon-ribavirin standard of care (SOC) administered to HCV-infected patients. Since disclosing our strategy, a candidate business partner has introduced us to clinical data that validates the mechanical removal of HCV through blood filtration in combination with SOC therapy can increase HCV cure rates by greater than 50%. Amazingly, the data also indicates that only small levels of viral filtration administered at the outset of SOC therapy are required to outperform the leading adjunct drug candidate, which represents a significant value component of a publicly traded company whose market capitalization exceeds $5 billion. If you are just learning about Aethlon Medical, our Hemopurifier® is a first-in-class medical device that selectively removes infectious viruses and immunosuppressive proteins from the bloodstream. In HCV care, the Hemopurifier® inhibits viral replication through selective adsorption of circulating HCV and augments the immune response by removing toxic proteins shed from HCV to kill-off immune cells.

More than ever, I believe the scientific principles underlying our Hemopurifier® will inevitably change the landscape for treating infectious disease and cancer. As we transition beyond the research and development phase of operations, our initial commercialization efforts related to therapeutic Hemopurifier® applications will focus on delivering our technology into India and other practitioner-driven medical device markets. Pending the outbreak of a pandemic or bioterror threat, our primary focus in these markets will be the treatment of HCV. Such focus is driven by previous Hemopurifier® treatment outcomes, the validation that viral filtration increases cure rates, and the magnitude of the HCV treatment opportunity.

Our goal in HCV care is to increase patient cure rates up to 90%. We envision two pathways to reach this goal:

1. Our Hemopurifier® as an adjunct treatment to enhance the benefit of SOC therapy; or
2. Our Hemopurifier® in combination with a candidate therapy to replace SOC therapy.

The achievement of our goal would significantly impact the HCV treatment industry as SOC therapy succeeds in providing sustained viral responses (SVR) in only 30% to 50% of patients who initiate treatment. HCV infection is considered cured when a SVR of undetectable viral load is maintained more than six months after completing treatment. Prior to discussing the clinical rationale supporting our treatment goals, I want to clarify the magnitude of the HCV treatment opportunity.

It is estimated that nearly 180 million people worldwide, or approximately 3% of the world's population, are infected with HCV. To provide perspective, this represents a patient population approximately 5-6 times larger than those infected with HIV/AIDS and over 100 times larger than the population of end stage renal disease (ESRD) patients who require kidney dialysis. However, unlike kidney dialysis and HIV therapeutics, we actually have the opportunity to participate in curing HCV-infected individuals. The global market for therapies to treat HCV is projected to reach $9.1 billion by 2015, and in the United States, the annual cost of advanced liver disease resulting from HCV infection is anticipated to jump to $85 billion in the next two decades. As a result, Medicare costs are anticipated to soar 500%, from $5 billion to $30 billion. As the stakes to treat HCV are high, the competition for new drugs is intense with more than sixty treatment candidates reported to be in development. As we target the use of our Hemopurifier® as a drug enhancement device in HCV care, we are positioned to improve treatment outcomes as an adjunct to both SOC therapy and new drug candidates that evolve to challenge SOC therapy in the marketplace.

Significant challenges exist for drugs seeking to supplant SOC therapy, as new candidates must demonstrate substantially greater patient benefit in order for the medical community to consider discontinuing administration of the SOC treatment regimen. As an example, Albuferon, an HCV treatment candidate from Human Genome Sciences (HGSI), recently demonstrated phase III treatment outcomes comparable to SOC therapy with half the number of required injections. As a result, the value of HGSI shares was reduced by 57% the day the study data was released. I can't help but wonder how Albuferon might have performed in combination with our Hemopurifier®? Regardless, a drug candidate wishing to supplant SOC therapy in the market will need to Bob Beamon (surpassed world long jump record by almost two feet at the 1968 Olympics) beyond the capabilities of SOC therapy.

For this reason, the primary strategy for most HCV drug candidates is to incrementally improve treatment outcomes as an adjunct to SOC therapy. The challenge facing these candidates is the effect of stacking new drug toxicity on top of established SOC toxicity, which is known to trigger fatigue, bone marrow suppression, anemia and neuropsychiatric effects. Many patients fail SOC therapy because they are unable to endure the toxicity of the 24-48 week regimen on its own. Based on clinical data, Telaprevir, a 3x-day oral drug from Vertex Pharmaceuticals is considered the leading adjunct candidate based on outcomes of a recent phase II study, which documented that 51% of patients that previously failed SOC had a sustained virologic response (SVR) when retreated with SOC and Teleprevir in combination. When considering that only 14% of patients in the study control arm responded to SOC alone, there is certainly valid justification for Telaprevir to be considered the lead adjunct drug candidate by the medical and the financial community. This is reinforced by the reality that Telaprevir represents a significant value component of Vertex (VRTX), which as I write this letter is valued at more $5 billion in the public markets. In regards to deal values in the HCV space, VRTX paid almost $400 million in March to acquire ViroChem, a drug developer with two experimental stage HCV drugs. TheStreet.com, who provides excellent HCV market coverage, reports the following on the Telaprevir clinical outcome; "The data keeps Telarevir ahead of its hepatitis C rivals because no other drug has yet shown the ability to improve the cure rates for both patients new to therapy as well as those who have failed prior therapy." The key phrase in that statement is "no other drug".

I suspect most individuals following the HCV treatment industry are not yet aware of a medical device study that demonstrated the mechanical removal of HCV through blood filtration outperforms Telaprevir as an adjunct to SOC therapy. The insight provided by this clinical validation should significantly benefit our endeavors. In a 63 patient study conducted in Japan, Asahi Kasei Kuraray Medical (Asahi) demonstrated that double filtration plasmapheresis (DFPP) when administered at the outset of SOC therapy provided a 77.8% SVR in HCV-infected patients. In patients who previously failed SOC, DFPP treatment provided an average SVR of 71.4% versus the 51% previously referenced in Telaprevir clinical studies. On average, each patient in the Asahi study received three DFPP treatments each lasting 3.14 hours. In the study, DFPP was administered once daily for three consecutive days at the outset of SOC therapy and provided an average viral load reduction of 26.1% during each treatment period. Amazingly, the 71.4% and 77.8% cures rates were achieved without any additional DFPP during the remaining SOC treatment regimen. As a result of DFPP treatment outcomes, Asahi has advanced DFPP beyond treatment candidate status to actively marketing the treatment in Japan as the V-RAD system, which Asahi derives from the phrase "Virus Removal and Eradication by DFPP". Additional information can be accessed online at: www.v-rad.jp/en/index.html . I shall keep my comments directed towards the science underlying the V-RAD system and not the animation you will encounter at this website. Regardless, the website is quite informative.

However, there are significant limitations for DFPP as compared to our Hemopurifer®. Like other approaches to therapeutic filtration, DFPP relies on multiple pumps and filters to indiscriminately remove particles by molecule size. For this reason, DFPP also extracts particles beyond HCV that are required for patient health. The safety profile of DFPP can be further diminished by the need for replacement fluids. In combination, these factors limit the time an HCV-infected patient can be exposed to DFPP treatment.

The advantages of our Hemopurifier® as compared to DFPP include the following:

1. The Hemopurifier® provides a greater reduction of HCV from circulation during treatment. Our data resulting from over 20 HCV treatments indicates an average viral load reduction of 41% during four-hour treatment applications of the Hemopurifier®.
2. The Hemopurifier® augments the immune response by removing toxic proteins shed from HCV to kill-off immune cells. These proteins are too small to be captured by DFPP.
3. The Hemopurifier® is designed to selectively capture HCV and immunosuppressive proteins versus the indiscriminate removal of particles by DFPP.
4. The Hemopurifier® is one single-use disposable cartridge versus the requirement for two cartridges and multiple pumps with DFPP.
5. The selective ability of the Hemopurifier® to capture targeted viruses and immunosuppressive proteins (versus the removal of needed blood components) allows for a continuous Hemopurifier® treatment strategy to rapidly reduce viral load to low to undetectable levels. Thus, increasing the likelihood that HCV infected individual can be cured by SOC therapy.

While we believe our Hemopurifier® has obvious advantages over the DFPP system, I wish to expand on point #5 as it provides a foundation to support our treatment goal of increasing HCV cure rates up to 90%. Based on published treatment literature, it is well established that patients who initiate SOC and achieve a rapid viral response (RVR) have significantly higher cure rates. RVR is defined as undetectable viral load at day 30 of SOC treatment. In fact, published literature indicates the small percentage of patients who do achieve a RVR have cure rates that range from 86-92%. Based on our Hemopurifier® data, we believe it is possible to achieve undetectable levels of HCV in week one of SOC therapy, not day 30. Based on data analyzed from four-hour Hemopurifier® treatments, we project that a patient with a high viral load of 7 million iu/ml might be reduced to undetectable HCV levels after approximately three days of continuous Hemopurifier® treatment. This corresponds to a 4.06 log reduction or a 11,000-fold decrease in viral load. An HCV patient with a moderate viral load of 2 million iu/ml would be projected to reach undetectable levels in approximately 2.5 days of continuous treatment. Such outcomes would position us to achieve our 90% cure rate goal and may allow for decreased dosages and duration of SOC therapy.

To leverage our opportunity in HCV care, we are pursuing strategic relationships that will broaden our ability to commercialize in practitioner driven markets, or accelerate our clinical opportunities in the U.S. and European Union. Additionally, we have responded to a grant opportunity to advance a diagnostic based Hemopurifier® and have been working on a candidate clinical protocol for a grant proposal related to the use of our Hemopurifier® as an adjunct cancer treatment to remove tumor secreted exosomes known to suppress the immune system of cancer patients. The data from these cumulative activities, including recent HIV and HCV treatment outcomes, will cause us to update the investigational device exemption (IDE) we have previously filed with the FDA related to use of our Hemopurifier® as a treatment countermeasure against bioterror and pandemic threats. In this regard, we were recently advised that we were a candidate being considered for a contract award from the Biomedical Advanced Research and Development Authority (BARDA). This was related to a multi-agency contract solicitation known as DMID-NIAID-NIHAI20080022BARDA. We have since been advised by BARDA that they will not be granting awards under this solicitation. BARDA has encouraged to update our data collected since our original submission and resubmit a new proposal to a BARDA specific contract solicitation known as BAA-BARDA-09-34. As we believe our Hemopurifier® represents the most advanced broad-spectrum treatment strategy to protect our military and civilian populations from viruses considered bioterror and pandemic threats, we plan to provide BARDA our new submission no later than July 31st. Regardless of these opportunities, our primary focus moving forward will be the treatment of Hepatitis-C.

On behalf of our dedicated team at Aethlon Medical, I thank you for your continued support.

Very truly yours,

James A. Joyce

Chairman, CEO

Certain of the statements within this shareholder letter may be forward-looking and involve risks and uncertainties. Such forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Aethlon Medical, Inc to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Such potential risks and uncertainties include, without limitation, the Company's ability to raise capital when needed, the Company's ability to complete the development of its planned products, the ability of the Company to obtain FDA and other regulatory approvals permitting the sale of its products, the Company's ability to manufacture its products and provide its services, the impact of government regulations, patent protection on the Company's proprietary technology, product liability exposure, uncertainty of market acceptance, competition, technological change, the capability of the Company's product compared to other medical devices and drugs and other risk factors. In such instances, actual results could differ materially as a result of a variety of factors, including the risks associated with the effect of changing economic conditions and other risk factors detailed in the Company's Securities and Exchange Commission filings.

  Contacts: Dave Gentry or Jon Cunningham RedChip Companies Inc. (407) 644-4256 (407) 491-4498 -cell   Dave@redchip.com   or   Jon@redchip.com   Jim Joyce Chairman, CEO 858.459.7800 x301   jj@aethlonmedical.com   Jim Frakes Senior VP Finance 858.459.7800 x300   jfrakes@aethlonmedical.com