Protalex Raises $12.7 Million in Private Placement

Sep 19, 2003, 01:00 ET from Protalex, Inc.

    ALBUQUERQUE, N.M., Sept. 19 /PRNewswire-FirstCall/ -- Protalex, Inc.
 (OTC Bulletin Board:   PRTX) announced today the completion of a private
 placement of 7.5 million shares of common stock with warrants to purchase
 approximately 2.6 million additional shares.  The financing was led by vSpring
 Capital, with participation by Integral Capital Partners as well as selected
 institutional and accredited private investors, including current
 shareholders.  Gross proceeds totaled approximately $12.7 million dollars.
     According to Steven H. Kane, President and CEO of Protalex, "The Company
 will use the proceeds of the private placement to accelerate the development
 and approval of its revolutionary drug for the treatment of Rheumatoid
 Arthritis and related autoimmune disorders."
     Dr. Dinesh Patel of vSpring Capital said, "We are very pleased to be
 involved in the Protalex financing.  We feel that Protalex presents an
 excellent opportunity in a large market.  We look forward to working with
 Steve Kane, Kirk Raab and the entire Protalex team."  Mr. Kirk Raab, the
 former CEO of Genentech, is Chairman of the Protalex Board of Directors.
     At Integral Capital Partners, Mr. Brian Stansky added, "We are excited to
 be investors in Protalex and believe that their drug has the potential to be a
 significant advancement in the treatment of Rheumatoid Arthritis and other
 autoimmune diseases."
     Protalex is engaged in the development and marketing of a new class of
 drug for the treatment of rheumatoid arthritis and other autoimmune disease.
 The securities offered by Protalex in this private placement have not been
 registered under the Securities Act of 1933, as amended, and may not be
 offered or sold in the United States absent registration or an applicable
 exemption from registration requirements.  Protalex has agreed to file a
 registration statement with the Securities and Exchange Commission registering
 the resale of the shares of common stock issued in this private placement, the
 shares of common stock issuable upon exercise of the warrants issued in this
 private placement and the shares of common stock issuable upon exercise of the
 warrants issued to the placement agent Merriman Curhan Ford & Co. who acted as
 the sole placement agent for this transaction, and in exchange for its
 services will receive a cash fee and similar warrants to purchase shares of
 common stock.
     Statements in this press release that are not strictly historical are
 "forward-looking" statements within the meaning of Section 27A of the
 Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
 These statements involve a high degree of risk and uncertainty, are
 predictions only and actual events or results may differ materially from those
 projected in such forward-looking statements.  Factors that could cause or
 contribute to differences include the Company's limited operating history,
 uncertainty regarding viability and market acceptance of the Company's
 products, and the Company's dependence on reimbursement by third parties.
 These factors and others are more fully described in the section entitled
 "Risks Related to the Company's Business" in the Company's Registration
 Statement on Form 10-SB (File No. 00028385) as filed with the Securities and
 Exchange Commission.

SOURCE Protalex, Inc.