Caltech Professor Michael Roukes, Caltech, and Arrowhead Research Agree to Form Nanokinetics

New Subsidiary to Strategically Focus on

Commercial Applications in Nanotech Field

Apr 22, 2004, 01:00 ET from Arrowhead Research Corporation

    PASADENA, Calif., April 22 /PRNewswire-FirstCall/ -- Arrowhead Research
 Corporation (OTC Bulletin Board:   ARWR), an emerging company in the field of
 nanotechnology, announced today that it has reached an agreement with Dr.
 Michael Roukes, California Institute of Technology Professor of Physics,
 Applied Physics and Bioengineering, and Caltech itself, to form a new
 corporation, Nanokinetics, that will focus on the development of the processes
 and devices needed to commercialize various nanotechnology applications.
 Nanokinetics will be the third majority-owned subsidiary formed by Arrowhead
     Dr. Roukes has gained worldwide recognition through his work on the
 physics and fabrication of nanoscale electronic devices.  He is the newly
 named founding Director of Caltech's Kavli Nanoscience Institute, which
 recently received a $7.5 million grant to foster innovative research at the
 frontiers of nanoscale science and engineering.
     Nanokinetics plans to focus upon building the technological base required
 to transition today's academic "nanoscience of the individual device" to the
 integration and mass production required for these market-ready products.
 With this process-oriented focus, Nanokinetics hopes to jumpstart the
 commercialization of many of the nanotech applications already available.  Dr.
 Roukes stated, "It is becoming clearer every day that the companies that make
 early and decisive investments to establish capabilities for complex
 nanodevice production will dominate the broader realm of commercial
 nanotechnology that lie beyond first-generation applications."
     One application being developed by Dr. Roukes and his team is a
 microfluidic-based electronic biosensor based upon BioNEMS (biofunctionalized
 nanoelectromechanical systems).  In the near term, nanosystems such as these,
 with nanoscale sensor elements numbering in the hundreds and thousands, can
 provide powerful new approaches to bio-threat detection, drug screening, and
 medical diagnostics -- with sensitivity approaching the single molecule level.
     Commenting on this latest addition, R. Bruce Stewart, President of
 Arrowhead Research, said, "We are obviously very pleased to add the
 world-class scientist Michael Roukes to our team.  In addition to bringing a
 wide array of experience and knowledge to the Arrowhead Research umbrella, we
 believe that the formation of Nanokinetics with Dr. Roukes will significantly
 increase the probability of more rapid commercialization of nanotech products
 and applications, including those in which our sponsored researchers and other
 subsidiaries are involved."
     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 Company's majority-owned subsidiaries are
 Aonexx Technologies, Inc. was formed to commercialize an ultrathin crystal
 film (nanofilm) technology and Insert Therapeutics, Inc. which is developing a
 proprietary drug delivery system.
     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