Business Wire - November 19, 2008

SAN MARINO, Calif.--Viral Genetics, Inc. (Other OTC:VRAL), a biotechnology company that discovers and develops immune-based therapies, today announced it has completed its acquisition of V-Clip Pharmaceuticals, Inc. ("V-Clip"). Viral Genetics has exercised its option to obtain the remaining 56 percent of V-Clip it did not already own. Upon closing, Viral Genetics will own 100 percent of V-Clip and V-Clip's exclusive worldwide rights to patent applications developed by Dr. M. Karen Newell, PhD, of the University of Colorado at Colorado Springs. The acquisition is in response to the study team's success in proving the viability of Newell's mechanism of action, which is now being used to further Viral Genetics' research in HIV/AIDS and other immune based diseases. Through the V-Clip merger Viral Genetics has not only added to the company's intellectual property portfolio but has considerably expanded its IP in AIDS and an array of other diseases.

"The acquisition of V-Clip is indicative of our confidence in the value of its now proven research model, the development of which was led by Dr. M. Karen Newell, who we believe is on the cutting edge in science that could potentially unlock the mysteries behind HIV/AIDS and other immune based diseases. Our hope is that this model may result in the future creation of more effective and affordable therapies to aid those needlessly suffering worldwide," said Haig Keledjian, co-founder and CEO, Viral Genetics, Inc.

Mechanism Of Action

The crown jewel of V-Clip's intellectual property that Viral Genetics has acquired is Newell's mechanism of action, which explains Viral Genetics' thymus nuclear protein compound (TNP), created from a mixture of peptides derived from thymic histones. When used in six international human clinical trials, results indicated that 25%-35% of the HIV-infected population exhibited significantly reduced viral load and clinical improvement. During in vitro research, it was found that individual peptides in TNP can bind to antigen-presenting cells and may be able to redirect the immune response.

Newell is committed to identifying the connection of inflammatory events, which characterize early stages of infection, with the importance of inflammation on susceptibility to HIV, and the link to an individual's genetic profile. The long-term goal of her HIV work is to obtain an IND for testing in humans of the newly identified and synthesized peptides or "targeted peptides" that can appropriately redirect the immune response to HIV and other immune based diseases.

The study team has consistently demonstrated the viability of TNP in HIV/AIDS research and has since identified TNP's potential in other immune based diseases. Previously, the lack of an animal test model for HIV/AIDS was a barrier. Newell then applied her mechanism of action to Lyme Disease where an animal testing model was available. In doing so, the team demonstrated, for the first time, TNP's potential for the study of other immune-based diseases.

The V-Clip Merger and Acquisition was contingent on the study team meeting key milestones including proving the viability of TNP as a mechanism of action for the research of HIV/AIDS as well as other immune based diseases. Newell's research continues to move forward as predicted and has exceeded early expectations. Now that the study team has achieved its initial goals, they will soon move onto the clinical phase of research.

"We are so grateful and impressed with Dr. Karen Newell and her talented tireless team. Everyone is looking forward to what future research will hold as early findings are very encouraging. We're also in the process of plans to announce additional collaborators, and of course, Karen will continue to lead the way," said Monica Ord, SVP of corporate development and communications for Viral Genetics.

Merger & Acquisition Terms

V-Clip will be merged with and into the Company's wholly-owned subsidiary, also called Viral Genetics, Inc., a California corporation. The transaction will close upon completion of certain corporate filings with the California Secretary of State, which Viral Genetics estimates will occur within 15 days.

For more information on the V-Clip Merger please see the Company's report on Form 8-K filed on November 17, 2008.

About Viral Genetics

Viral Genetics, Inc. is a biotechnology company that discovers and develops immune-based therapies for HIV and AIDS using its thymus nuclear protein compound (TNP). The Company recently entered into an Exclusive License Agreement with the University of Colorado and V-Clip Pharmaceuticals (then a subsidiary of the Company) to license technology developed by M. Karen Newell, PhD that appears to explain TNP and provide a means to optimize therapies based on TNP for future clinical trials. TNP may have other potential applications for other infectious, autoimmune, and immunological deficiency diseases that the company intends to study in the future. Based on the study team's early findings, which have consistently demonstrated the viability of TNP as a mechanism of action to further research HIV/AIDS and other immune based diseases, Viral Genetics has since acquired V-Clip in its entirety, and is in the process of closing the merger of V-Clip with and into Viral Genetics, Inc. Viral Genetics believes that its investigational HIV/AIDS drug based on TNP, called VGV-1, represents a unique approach to treating HIV due to the apparently novel mechanism, low toxicity profile, simple dosing regimen, and short-course of treatment. As a type of immune-based therapy, it focuses on boosting the immune system to allow the body to fight HIV more efficiently. VGV-1 has been studied in five human clinical trials for the treatment of HIV/AIDS. Online at www.viralgenetics.com

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 filed with the SEC. VGV-1 is not approved by the US Food and Drug Administration or by any comparable regulatory agencies elsewhere in the world. While Viral Genetics believes that the forward-looking statements and underlying assumptions contained therein are reasonable, any of the assumptions could be inaccurate, including, but not limited to, the ability of Viral Genetics to establish the efficacy of VGV-1 in the treatment of any disease or health condition, the development of studies and strategies leading to commercialization of VGV-1 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, and the successful outcome of such studies or tests. 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.

Contacts

Viral Genetics | Haig Keledjian, 626-334-5310

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