Lpath, Inc., headquartered in San Diego, California, is the category leader in lipidomic-based therapeutics, an emerging field of medical science whereby bioactive signaling lipids are targeted for treating important human diseases Lpath's lead product candidate, Sphingomab, is a monoclonal antibody against a validated cancer target, sphingosine-1-phosphate (S1P), and has demonstrated compelling results in preclinical studies against multiple forms of cancers, against AMD, and against heart failure. Sphingomab is potently anti-angiogenic, yet it has other mechanisms of action that may prove advantageous in the clinical setting. As such, Lpath believes Sphingomab may represent the next generation of anti-angiogenesis-based therapeutics.

Lpath's second product candidate, Lpathomab(TM), is a monoclonal antibody against lysophosphatidic acid (LPA), a key bioactive lipid that has been long recognized as a significant promoter of cancer-cell growth and metastasis in a broad range of tumor types.

Lpath's unique ability to generate antibodies against bioactive lipids is based on its patented ImmuneY2(TM) technology. The company intends to apply the ImmuneY2 process to other important lipid-signaling agents, thereby providing a robust pipeline of antibody-based drug candidates.

NEWS

June 14, 2007

Lpath (LPTN) announced the closing of approximately $2.9 million in the second and final tranche of a private placement of unregistered shares of Class A common stock. Proceeds from the first tranche, which closed April 6, 2007, totaled approximately $13.9 million. The securities issued in this second tranche of the $16.8 million equity financing are identical to the securities issued in the first tranche. Investors in the first tranche financing were required to make the second tranche financing upon satisfaction of certain conditions, including stockholder approval of an increase in Lpath's authorized Class A common stock and an increase in the shares reserved for Lpath's stock option plan.

Proceeds from the funding will be used to take Lpath's lead compound, Sphingomab(TM), into clinic trials and to further develop Lpath's other therapeutic programs.