8/08 Savara Pharmaceuticals Completes Private Placement Round

Austin, Texas, August 4, 2008: Savara Pharmaceuticals, an innovator in pulmonary drug delivery, announced today that it has secured an equity financing round from a syndicate of private investors. The funds will be used to manage out-licensing demand, scale up manufacturing and gain regulatory approval for the company’s lead therapeutic.

“We are very pleased to be able to reach this funding milestone given today’s challenging economic environment,” said Rob Neville, Executive Chairman of Savara. “This investment demonstrates the excitement and demand for Savara’s NanoCluster® technology.” “Our unique technology holds great promise for improving efficacy of available drugs and addressing currently unmet healthcare needs,” said George Laurence, President and CTO. “The investment is an important step forward in helping us realize the potential our technology holds.”

“The unique properties of the NanoCluster® solution have already attracted the attention of big pharma companies looking to find alternate delivery platforms for their blockbuster drugs,” said Matt Dennis, a global equity fund manager, who made a personal investment in Savara. “Combined with the potential for much earlier diagnoses of lung cancer as well as the delivery of pulmonary medicines in ways that science has been unable to achieve, the future looks bright for Savara.”

About Savara

Lawrence, Kansas-based Savara Pharmaceuticals develops pulmonary drug delivery solutions based on an exclusive license of the NanoCluster® formulation technology developed at the University of Kansas. Medicine manufactured using the NanoCluster® technology is in the form of a dry powder aerosol formulated directly from nanoparticles of the medicine itself. This means that there are no carrier particles that increase the potential for toxicity. In addition, the aerodynamics of the powder is engineered to penetrate all areas of the lung. These breakthroughs result in far safer and more effective drug delivery solutions.