PEARL THERAPEUTICS CLOSES $18 MILLION FINANCING

Redwood City, CA, July 2, 2008 - Pearl Therapeutics, Inc., a biopharmaceutical company developing products for major respiratory diseases, today announced that it has completed the closing of an $18 million round of financing. This financing was executed as an extension to its first venture financing, which closed in May 2007. Participating in the internal round were Pearl’s existing investors Clarus Ventures, New Leaf Ventures, 5AM Ventures and Nektar Therapeutics. In total, Pearl has raised $36.4 million of venture and other funding.

"We have worked hard over the past year to establish the company, build the team, and advance our product pipeline. This follow-on financing signifies the confidence and enthusiasm of our investors, and we are delighted with their continued support. This additional capital will allow us to accelerate and broaden the development efforts on our products and delivery platform," said Adrian Smith, President, and co-founder of Pearl.

"Pearl has been successful at attracting some of the top respiratory product development talent in the world, and has delivered on its commitments. We fully support the team in moving ahead with its product and platform plan," said Jim Young, PhD, Chairman of the Board of Directors and Venture Partner at 5AM Ventures

About Pearl Therapeutics

Pearl Therapeutics is developing therapies for the treatment of highly prevalent respiratory diseases, including chronic obstructive pulmonary disease (COPD) and asthma. Leveraging its proprietary particle technology, formulation expertise and unparalleled product development experience, Pearl is rapidly advancing a pipeline of products that offer patients and healthcare professionals therapies that better meet their needs and improve upon the safety and efficacy of existing respiratory therapeutics. Founded in 2006, Pearl Therapeutics is privately held and backed by Clarus Ventures, New Leaf Ventures and 5AM Ventures. For more information, please visit us at http://www.pearltherapeutics.com.