Arrowhead Research Corporation's New Nanotech Subsidiary, Aonexx Technologies, Inc., Names President

Apr 20, 2004, 01:00 ET from Arrowhead Research Corporation

    PASADENA, Calif., April 20 /PRNewswire-FirstCall/ -- Arrowhead Research
 Corporation (OTC Bulletin Board:   ARWR) announced today that its newly-formed
 nanotech subsidiary, Aonexx Technologies, Inc., has named Mr. Sean Olson as
 President.  Aonexx Technologies is developing patented nano-layer transfer
 technologies and system integration solutions for the compound semiconductor
     "Sean has a wealth of experience, strong leadership skills, and a clear
 strategic vision for the Company.  He is also deeply knowledgeable on both the
 business principles and technologies that drive the semiconductor industry,"
 said Harry Atwater, the Caltech Professor who developed the technology and co-
 founded the Company with Arrowhead Research.  "We are very pleased to have him
 on the team."
     Mr. Olson joins Aonexx with technical and business experience in the
 semiconductor industry.  He served in engineering and management positions at
 Silicon Valley Group Lithography (acquired by ASML), and supported technology
 and business development efforts at Oraxion Diagnostics, a start-up in the
 metrology space.  He was also a strategy consultant for The Boston Consulting
 Group.  Mr. Olson received his bachelor's and master's degrees in engineering
 from the Massachusetts Institute of Technology and a master's degree in
 Business Administration from the Harvard Business School.
     Aonexx Technologies was formed to commercialize a patented method for
 transferring nano-layers of semiconductor materials (e.g., indium phosphide,
 germanium, and gallium arsenide) and oxides (e.g., barium titanate, lithium
 niobate, and PMNPT) onto low-cost substrates (e.g., silicon, sapphire, and
 glass), with no adhesives and with controlled stress.
     Early applications are expected to include the development of inexpensive
 laminate wafers (e.g., indium phosphide on silicon and germanium on silicon)
 that could replace expensive, homogenous compound semiconductor substrates.
 These 'replacement' wafers are expected to reduce manufacturing costs and
 improve performance for devices such as LEDs, power amplifiers for wireless
 communications, and high-efficiency solar cells.  Aonexx is currently
 scheduled to have limited samples available for evaluation purposes by
 qualified customers within three months.
     The Company is also exploring the use of the technology to support the
 integration of different semiconductor materials onto a single substrate.
 Such a technology would enable optical, logical, and high frequency power
 amplification devices to be integrated into single dies -- an industry trend
 termed 'system on a chip' (SoC) -- and bring with it opportunities for
 significant cost savings and performance improvements.  Ultimately, the
 company hopes to enable the optical and electrical properties of device active
 regions to be engineered independently of the underlying substrate's thermal,
 dielectric, and mechanical properties.
     About Arrowhead Research Corporation
     Arrowhead Research Corporation funds research at universities in
 pioneering scientific areas, primarily nanotechnology, in return for exclusive
 rights to commercialize technologies and associated intellectual property and
 patents developed as a result of this research.  The Company has already
 entered into agreements with the California Institute of Technology and three
 of its faculty, and is actively pursuing other potential partners at Caltech
 and other leading research institutions and universities.
     Commercial applications that arise from Company-sponsored research
 projects will be developed and marketed by Arrowhead Research through a series
 of diversified subsidiaries representing each product or application, or
 through third-party licensing.  The first majority-owned subsidiary, Aonexx
 Technologies, was formed to commercialize an ultrathin crystal film (nanofilm)
 technology that was developed at Caltech.
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995:
     This news release contains forward-looking statements within the meaning
 of the "safe harbor" provisions of the Private Securities Litigation Reform
 Act of 1995.  These statements are based upon our current expectations and
 speak only as of the date hereof.  Our actual results may differ materially
 and adversely from those expressed in any forward-looking statements as a
 result of various factors and uncertainties, including the recent economic
 slowdown affecting technology companies, our ability to successfully develop
 products, rapid technological change in our markets, changes in demand for our
 future products, legislative, regulatory and competitive developments and
 general economic conditions.  Our Annual Report on Form 10-K, recent and
 forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Forms
 8-K and 8-K/A, and other SEC filings discuss some of the important risk
 factors that may affect our business, results of operations and financial
 condition.  We undertake no obligation to revise or update publicly any
 forward-looking statements for any reason.

SOURCE Arrowhead Research Corporation