RXi Pharmaceuticals Obtains an Exclusive Worldwide License to Technology for the Oral Delivery of RNAi Therapeutics from the University of Massachusetts Medical School

Business Wire, Oct 14, 2008

Company Plans to Develop Oral rxRNA[TM] Therapeutics for Inflammatory Diseases

WORCESTER, Mass. -- RXi Pharmaceuticals Corporation (Nasdaq: RXII), a biopharmaceutical company pursuing the development and commercialization of proprietary therapeutics based on RNA interference (RNAi), today announced that it has licensed exclusive worldwide rights from the University of Massachusetts Medical School (UMMS) to certain technology for the oral delivery of RNAi therapeutics. The technology was developed by Dr. Michael Czech, Professor and Chair, Program in Molecular Medicine at UMMS and an RXi founder, and Dr. Gary R. Ostroff, Professor of Molecular Medicine at UMMS and an RXi collaborator. Financial terms were not disclosed.

Tod Woolf, Ph.D., President and Chief Executive Officer of RXi Pharmaceuticals, commented, "The development of technology that potentially enables oral delivery represents a truly dramatic advance for the field of RNAi therapeutics, and could open up significant market opportunities for RXi. We view this license as a major step toward our goal of developing such drugs as it allows us to potentially target a new class of cells that cannot be accessed either by traditional RNAi delivery methods, local administration or injection. In particular, we believe that UMMS' oral delivery technology, which targets certain types of inflammatory cells called macrophages, may allow us to develop orally administered rxRNA compounds for the treatment of a variety of significant inflammatory diseases, including rheumatoid arthritis, asthma, Crohn's disease, atherosclerosis, psoriasis and Type II diabetes. Since some of the most advanced and successful anti-inflammatory drugs currently on the market require injection, an orally administered RNAi compound could have significant competitive advantages for both patients and physicians."

Dr. Woolf continued, "We believe that RXi has one of the most comprehensive RNAi therapeutic technology platforms in the industry, which now includes oral, as well as local (CNS) and systemic delivery (nanotransporters) technology. It is widely believed that delivery technologies are key to enabling the successful commercialization of RNAi interference drug candidates and RXi has made great strides in acquiring and developing its various platforms in order to deliver proprietary, next generation rxRNA[TM] compounds to specific target tissues and diseases."

Going forward, management noted, RXi intends to work with pharmaceutical and biotechnology partners to advance the discovery and development of orally delivered rxRNA[TM] therapeutics for a host of inflammatory diseases.

About RXi Pharmaceuticals Corporation

RXi Pharmaceuticals is a discovery-stage biopharmaceutical company pursuing the development and potential commercialization of proprietary therapeutics based on RNA interference (RNAi) for the treatment of human diseases. RXi Pharmaceuticals' rxRNA[TM] compounds are distinct from the siRNA compounds used by many other companies developing RNAi therapeutics and are very active and potent (10-100pM activity in cell culture) based on the company's internal research, in addition to being nuclease resistant and readily manufactured. RXi Pharmaceuticals believes it is well positioned to compete successfully in the RNAi-based therapeutics market with its accomplished scientific advisors, including Dr. Craig Mello, recipient of the 2006 Nobel Prize for his co-discovery of RNAi; a management team that is experienced in developing RNAi products; and a strong early intellectual property position in RNAi chemistry and delivery. www.rxipharma.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future expectations, plan and future development of RXi Pharmaceutical Corporation's products and technologies. These forward-looking statements about future expectations, plans and prospects of the development of RXi Pharmaceutical Corporation's products and technologies involve significant risks, uncertainties and assumptions, including the risk that the development of our RNAi-based therapeutics may be delayed or may not proceed as planned and we may not be able to complete development of any RNAi-based product, the risk that delivery technologies utilized by us may not prove safe or effective in pre-clinical studies or clinical trials,the risk that the FDA approval process may be delayed for any drugs that we develop, risks related to development and commercialization of products by our competitors, risks related to our ability to control the timing and terms of collaborations with third parties and the possibility that other companies or organizations may assert patent rights that prevent us from developing our oral delivery products. Actual results may differ materially from those RXi Pharmaceuticals Corporation contemplated by these forward-looking statements. RXi Pharmaceuticals Corporation does not undertake to update any of these forward-looking statements to reflect a change in its views or events or circumstances that occur after the date of this release.