Pulmatrix Closes $30.2M in Series B Financing

--Company Developing Novel Therapies to Treat and Prevent Respiratory Diseases--

LEXINGTON, Mass. -- Pulmatrix, a clinical stage biotechnology company discovering and developing a new class of therapies for the treatment and prevention of infectious and progressive respiratory diseases, today announced that it has secured $30.2 million in Series B financing. ARCH Venture Partners and Novartis Bioventures Fund co-led the round with participation from existing investors Polaris Venture Partners and 5AM Ventures.

Proceeds from the financing will be used to enhance Pulmatrix's R&D capabilities in advancing a new class of host-targeted therapies that treat and prevent a full range of respiratory diseases by harnessing the airway and lungs own natural biophysical properties and host-defense mechanisms. In particular, the financing will accelerate the development of Pulmatrix's product pipeline, including multiple clinical trials in a number of respiratory diseases that will initiate in 2010 and 2011. Currently, Pulmatrix has a drug compound, PUR003, which is being evaluated in Phase 1B/2A trials in influenza, with results from this initial clinical study expected by the end of the year. The new and ongoing clinical trials build upon previous preclinical studies that have demonstrated the efficacy of the Pulmatrix approach in the treatment, prevention, and transmission control of both viral and bacterial diseases in multiple animal species.

"We believe that Pulmatrix's therapies are uniquely positioned to address respiratory diseases in a fundamentally new way which could result in game changing improvements in the lives of patients with many different types of respiratory diseases," said Lauren Silverman, Ph.D., Managing Director, Novartis Venture Funds. "We look forward to working with this top-tier management and investor group."

Steven Gillis, Ph.D., Managing Director, ARCH Venture Partners, commented, "Pulmatrix has made considerable progress in developing a novel approach to both treatment and prevention of viral and bacterial infections. We are pleased to join the current investor syndicate and look forward to working with the company as it continues to test and develop its technology platform."

"We believe this Series B investment and the blue chip investors involved validate the premise of Pulmatrix's innovative and unique approach to developing a new class of drugs to treat and prevent a broad range of serious infectious and progressive respiratory diseases," said Robert Connelly, Pulmatrix Chief Executive Officer. "These new funds will allow us to generate significant human data in several therapeutic indications including influenza, chronic obstructive pulmonary disease (COPD), and asthma and we're looking forward to initiating an asthma trial by the end of 2009."

Pulmatrix has made several board appointments to reflect its new shareholder mix; Drs. Lauren Silverman and Steve Gillis have become directors. They join existing board members Terry McGuire of Polaris, Scott Rocklage of 5AM, David Edwards, Ph.D., Pulmatrix co-founder and Professor of Biomedical Engineering at Harvard University, Mark Gabrielson, CEO of Ore Pharmaceutical Holdings, Inc. and founding CEO of Pulmatrix and Robert Connelly, CEO of Pulmatrix.

About Pulmatrix

Pulmatrix is discovering and developing a new class of host-targeted therapies that treat and prevent a broad range of infectious and progressive respiratory diseases by harnessing the airway and lungs own natural biophysical properties and host defense mechanisms. Pulmatrix's innovative technology is pathogen-independent so it has broad potential to treat a wide range of respiratory diseases, including respiratory infections such as influenza, ventilator acquired pneumonia (VAP) and respiratory syncytial virus (RSV), as well as progressive respiratory diseases such as COPD, asthma and cystic fibrosis. The Pulmatrix technology is based on the ground-breaking scientific work of renowned Harvard Professor David Edwards and Pulmatrix scientists, and is financed by leading life science investors Polaris Venture Partners, 5AM Ventures, ARCH Venture Partners, and the Novartis Bioventures Fund. For additional information about the Company, please visit http://www.pulmatrix.com.