PneumRx, Inc. Announces CE Mark Approval for Its RePneu(R) Lung Volume Reduction Coil (LVRC(TM)) System

MOUNTAIN VIEW, California, October 13, 2010 - PneumRx, Inc. (www.pneumrx.com), a medical device company dedicated to
bringing innovation and improvements to the treatment of lung disease, today
announced that it has received CE Mark approval for its RePneu Lung Volume
Reduction Coil (LVRC) System to treat the later stages of emphysema.

The RePneu LVRC System is a minimally invasive device intended to improve
lung function in emphysema patients by brochoscopically implanting Nitinol
coils into the lungs to compress damaged tissue (lung volume reduction) and
restore elastic recoil to the healthier lung tissue. This treatment offers a
minimally invasive alternative to lung volume reduction surgery, and works
independently of collateral ventilation.

The CE mark approval enables PneumRx to move forward with
commercialization in Europe and other select markets. PneumRx intends to
launch its RePneu LVRC System in Europe in the last quarter of 2010. PneumRx
plans to continue its ongoing partnership with physicians through training
and by offering novel products for the diagnosis and treatment of lung
disease.

"We are thrilled to have achieved this important milestone, and look
forward to introducing our RePneu LVRC to the European market to help improve
the lives of so many people who are suffering from emphysema and have few
other viable treatment options," said Erin McGurk, President and CEO of
PneumRx, Inc. "We are extremely pleased with the significant improvements in
pulmonary function tests, exercise tolerance, and quality of life experienced
by our clinical trial patients, and expect to bring these same benefits to a
broader population of emphysema patients with the commercialization of the
RePneu LVRC System in Europe."

About PneumRx, Inc.

PneumRx, Inc. is a rapidly growing medical device company focused on the
development and commercialization of innovative products to treat emphysema
using minimally-invasive techniques. It is a privately held company located
in Mountain View, California.

PneumRx, Inc., +1-650-625-8910