Rimon Therapeutics - participant and beneficiary in $ 19.2 million product development program

TORONTO ON, June 30, 2009 - Rimon Therapeutics is pleased to announce that the Government of Ontario will provide $ 6.4 million in Ontario Research Fund support for the research and development of "Theramers" as therapeutic products and for regenerative medicine applications.  Theramers" (Therapeutic polymers) are a class of novel biomaterials unique to Rimon that have application in the treatment of important human diseases with large markets, such as chronic skin wounds (e.g., diabetic ulcers and bedsores), periodontal disease, various ophthalmic conditions, and osteoarthritis.

Matching funding from Rimon Therapeutics, the University of Toronto, and four other Ontario-based research institutions will bring total funding for this initiative to $ 19.2 million over the next 4 years.

Richard McCrae, Executive Chairman of Rimon Therapeutics states, "As a company we are committed to rapidly turning cutting edge Canadian science into global remedies – and are thrilled by the Ontario Government’s vision and support of this aim."

University of Toronto Professor, Michael Sefton, will oversee the scientific program and lead the network of world-class researchers assembled to conduct the work. "Theramers are solid materials (plastics) that have drug-like activity. For example, they can be made into advanced wound dressings that don’t require drugs, growth factors or cells for their therapeutic function – the dressing itself imparts the healing benefits. Financial support from Rimon and the provincial government will enable us to realize the potential of Theramers as quickly as possible", says Dr. Sefton. The other principal investigators in the initiative all have specific expertise in one of the priority applications for Theramers and excellent track records working with industry. They include: Professor Michelle Bendeck, University of Toronto, Dr. Rita Kandel, Mount Sinai Hospital, Professor Christopher McCulloch, University of Toronto, Dr. Philip Sherman, The Hospital for Sick Children, Professor Heather Sheardown, McMaster University, and Dr. Bradley Strauss, Sunnybrook Health Sciences Centre.

Strategic management and funding provided by Rimon will take a series of large market product candidates from conception through regulatory approval and arrange for their worldwide commercialisation. According to Dr. Michael May, President of Rimon Therapeutics, "Rimon has a strong product focus, and a track record of working collaboratively with academic research institutions to advance its Theramer technology. The ORF funding strengthens our ability to align our revolutionary technology with world-class resources and the needs of the marketplace." He adds, "Now, we can think even bigger and push even faster to market."

About the Ontario Research Fund of the Ministry of Research and Innovation

The Ontario Research Fund (ORF) is a key part of the government's plan to support scientific excellence by supporting research that can be developed into innovative goods and services that will boost Ontario's economy. Through a commitment of $730 million over four years, Ontario is providing talented researchers with the funding they need to undertake cutting-edge research.

More information on the Ontario Research Fund and the June 23rd, 2009 Ontario Government press release with respect to this funding can be found at: www.mri.gov.on.ca/english/news/ORF062309_toronto_bd.asp

Rimon Therapeutics is an emerging life sciences company developing unique therapeutics for large indications based on its proprietary Theramer® platform. Theramers are medical polymers that provide therapeutic function in and of themselves, without the inclusion of drugs. Rimon’s Theramers® are able to inhibit the activity of enzymes that destroy tissue, kill bacteria without harming human cells, and induce new blood vessels to grow. Regulated as medical devices, Theramers® enable quick-to-market treatments for a variety of medical conditions, including chronic wounds, periodontal disease, various eye disorders and osteoarthritis.

For further information, please visit www.rimontherapeutics.com or contact:

Michael H. May PhD, President

Rimon Therapeutics Ltd

416-977-6363

may@rimontherapeutics.com