VG Energy's Lipid Enhancement Technology Independently Confirmed in First Phase of Testing for Potential Commercial Production of Biofuels

SAN MARINO, Calif., June 8, 2011 /PRNewswire/ -- VG Energy, Inc., a majority-owned subsidiary of Viral Genetics, Inc. (Pinksheets: VRAL), has received independent confirmation from BioProcess Algae, LLC of early laboratory studies that verify an increase in yields of algae oils following treatment with VG Energy's Metabolic Disruption Technology (MDT) additives. These test studies hold promise for the use of VG's proprietary technology in the large-scale commercial production of biofuels as well as high-value oils used in cosmetics, food and nutraceuticals, among other products.

"We are pleased but not surprised by these early results," said Viral Genetics CEO Haig Keledjian. "Seeing these positive results has been the confirmation that was needed to go forward with the next phase of this particular study."

The results represent the completion of the first two steps of a viability study that VG Energy retained BioProcess Algae to conduct, originally announced on March 25, 2011. BioProcess Algae initially performed a Feasibility Assessment Study to establish baseline performance of VG's technology, with algal strains provided by VG and additional strains from BioProcess Algae. Recognizing an increase in Mean Nile Red Fluorescence, with the strongest effects seen after 48 hours, the study verifies bench-level results of VG's lipid enhancement technology. The next step will be a Dosage Response Study followed by testing at industrial-scale studies.

The Dosage Response Study, expected to be completed within a month, will determine the optimal dosage for the highest lipid outcome in the plant strains selected, according to Dr. M. Karen Newell Rogers, VG Energy's head of scientific research. "It is important that we are thorough in our studies, dosage and selection in order to continuously move the bar to get the highest yields possible," noted Dr. Newell Rogers.

"Although we've seen these results now internally multiple times, it was important to have them validated independently prior to scale up," said Monica Ord, senior vice president of Viral Genetics. "We are moving forward as quickly as possible with the highest level of rigorous scientific data." The next update on this project will be upon completion of the Industrial Scale Demonstration.

About BioProcess Algae, LLC

BioProcess Algae, LLC (BPA) was formed in 2008 to commercialize algae production systems for next-generation biofuels and animal feeds. BPA is a joint venture among Clarcor, BioProcessH2O LLC, Green Plains Renewable Energy, Inc., and NTR plc. More information can be found at http://www.bioprocessalgae.com.

About Viral Genetics, Inc.

San Marino, California-based Viral Genetics discovers drug therapies from two platform technologies based on over 60 patents: Metabolic Disruption (MDT) and Targeted Peptides (TPT). Founded in 1994, the biotech company is researching treatments for HIV/AIDS, Lyme Disease, Strep, Staph and drug resistant cancer. A majority-owned subsidiary, VG Energy (http://www.vgenergy.net), is dedicated to exploring biofuel and agricultural applications for the MDT platform. For more information, visit http://www.viralgenetics.com.

About VG Energy

VG Energy Inc. is an alternative energy and agricultural biotech company that is a majority-owned subsidiary of Viral Genetics Inc. Using its Metabolic Disruption Technology (MDT), Viral Genetics' cancer research led to discoveries with major consequences in a wide variety of other industries, including production of biofuel and vegetable oils. VG Energy holds the exclusive worldwide license to the MDT patent rights for use in the increase of production of various plant-derived oils from algae and seeds. These pivotal discoveries promise to potentially allow the biofuel industry to overcome its major obstacle in the area of production efficiency: namely, an increase in production yields leading to feasible economic returns on investment, allowing renewable biodiesel to be competitive with fossil fuels. For more information, please visit http://www.vgenergy.net.

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS:

This news release contains forward-looking statements that involve risks and uncertainties associated with financial projections, budgets, milestone timelines, clinical development, regulatory approvals, and other risks described by Viral Genetics, Inc. from time to time in its periodic reports, including statements about its VG Energy, Inc. subsidiary. None of Viral Genetics' drug compounds are approved by the US Food and Drug Administration or by any comparable regulatory agencies elsewhere in the world, nor are any non-pharmaceutical products of VG Energy, Inc. commercialized. While Viral Genetics believes that the forward-looking statements and underlying assumptions reasonable, any of the assumptions could be inaccurate, including, but not limited to, the ability of Viral Genetics to establish the efficacy of any of its drug therapies in the treatment of any disease or health condition, the development of studies and strategies leading to commercialization of those drug compounds in the United States, the obtaining of funding required to carry out the development plan, the completion of studies and tests on time or at all, the successful outcome of such studies or tests, or the successful commercialization of VG Energy, Inc.'s non-pharmaceutical products. Therefore, there can be no assurance that the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the forward-looking statements should not be regarded as a representation by Viral Genetics or any other person that the objectives and plans of Viral Genetics will be achieved.

Contact:
Haig Keledjian
Viral Genetics, Inc.
(626) 334-5310

SOURCE VG Energy, Inc.