Arrowhead Subsidiary, Unidym, Closes $10.4 Million Financing Led by Financial and Strategic Institutions

Business Wire, Dec 4, 2007

PASADENA, Calif. -- Arrowhead Research Corporation (Nasdaq:ARWR), announced today that majority owned subsidiary, Unidym, Inc., has completed a $10.4 million Series C financing. Several financial institutions participated in the round, along with strategic investors Tokyo Electron Ventures and Battelle Memorial Institute. Arrowhead made a $3 million follow on investment.

"We are excited to further strengthen our alliance with Battelle and begin our relationship with Tokyo Electron, one of the world's largest electronics equipment suppliers," said Art Swift, Unidym's CEO. "We look forward to working with both partners in commercializing carbon nanotube based electrodes and transistors for the touch panel, display and solar industries."

"We believe Unidym is well positioned to be a leader in the future era of flexible displays and printed electronics," remarked Mike Yamaguchi, President of TEL Venture Capital, Inc. As a leading global supplier of semiconductor and flat panel display production equipment, Tokyo Electron Limited (TEL) engages in development, manufacturing, and sales in a wide range of product fields.

"Unidym's IP portfolio and capabilities for nanotube synthesis and processing also allow the company to target diverse and growing markets ranging from medical applications to high performance composites," stated Alex Kawczak, Vice President of Nanotechnology at Battelle. Battelle is an international science and technology enterprise that explores emerging areas of science, develops and commercializes technology, and manages laboratories for customers. Battelle and Unidym inked a strategic alliance to explore opportunities to leverage their respective capabilities to commercialize nanotube-based products earlier this year.

In the offering, approximately 5.8 million Series C Preferred Shares were sold at $1.80 per share. After giving effect to the offering, Arrowhead continues to own a majority of the outstanding, voting shares of Unidym.

About Arrowhead Research Corporation

Arrowhead Research Corporation (www.arrowheadresearch.com) (NASDAQ:ARWR) is a leading nanotechnology company commercializing new technologies in the areas of life sciences, electronics and energy. Arrowhead is building value for shareholders through the progress of majority owned subsidiaries founded on nanotechnologies originally developed at universities. The company works closely with universities to source early stage deals and to generate rights to intellectual property covering promising new nanotechnologies. Currently, Arrowhead has five subsidiaries commercializing nanotech products and applications, including anti-cancer drugs, RNAi therapeutics, fullerene anti-oxidants, carbon-based electronics and compound semiconductor materials.

About Unidym, Inc.

Unidym (www.unidym.com) is a leader in the manufacture and application of carbon nanotubes (CNTs), a novel material with extraordinary electrical, thermal and mechanical properties. Unidym provides bulk materials, CNT-enabled products and intellectual property to a wide range of customers and business partners. As a result of its recent merger with CNI, Unidym possesses a foundational patent portfolio that covers nearly every aspect of CNT manufacturing and processing, as well as multiple product applications.

Unidym is focused on the electronics industry where its initial products include transparent electrodes for touch screens, flat panel displays, solar cells and solid state lighting; electrodes for fuel cells; and thin film transistors for printable electronics. Unidym is also pursuing a cross-industry partnership strategy to capture value from the wide ranging uses of CNTs. Unidym's licensing program, technical expertise and manufacturing facilities can enable partners to rapidly develop CNT solutions for their specific applications.

About TEL

TEL, established in 1963, is a leading supplier of innovative semiconductor and FPD production equipment worldwide. In Japan, TEL also distributes computer network related products and electronic components of global leading suppliers. To support this diverse product base, TEL is strategically located around the world. TEL is a publicly held company listed on the Tokyo Stock Exchange. www.tel.com.

About Battelle

Battelle is the world's largest non-profit independent research and development organization, providing innovative solutions to the world's most pressing needs through its four global businesses: Laboratory Management, National Security, Energy Science and Technology, and Health and Life Sciences. It advances scientific discovery and application by conducting $4 billion in global R&D annually through contract research, laboratory management and technology commercialization. Headquartered in Columbus, Ohio, Battelle oversees 20,400 employees in more than 120 locations worldwide, including seven national laboratories which Battelle manages or co-manages for the U.S. Department of Energy and the U.S. Department of Homeland Security.

Battelle also is one of the nation's leading charitable trusts focusing on societal and economic impact and actively supporting and promoting science and math education. For more information visit www.battelle.org or contact Media Relations Manager Katy Delaney at 410-306-8638 or at delaneyk@battelle.org.