News Release

Contact: Matthias Pohl Tel. 678.495.3143 cc@alteatherapeutics.com 2056 Weems Road Tucker, GA 30084 www.alteatherapeutics.com

Altea Therapeutics Announces Positive Clinical Results for its Basal Insulin Transdermal Patch
Phase 1 Studies Show Efficient, Sustained and Constant Delivery of Insulin at Therapeutic Levels

ATLANTA, Ga., January 25, 2007. Altea Therapeutics announces positive clinical results from Phase 1 human clinical studies for its basal insulin transdermal patch showing efficient, sustained and constant delivery of insulin at therapeutic levels. These results were presented this week at the 11th Annual Drug Delivery Partnerships Conference held in Las Vegas, Nevada, In a glucose-clamp study in normal subjects, Altea Therapeutics achieved constant insulin delivery at therapeutic levels over a 12-hour patch application period. The data show efficient delivery of the applied dose of insulin and demonstrate favorable pharmacodynamics of transdermal insulin delivery when compared to a subcutaneous injection of a long-acting insulin analog. Altea Therapeutics is developing both 12-hour and 24-hour transdermal patches based on its proprietary PassPort System to provide constant basal levels of insulin for people with type 1 or type 2 diabetes. We are delighted to achieve such promising results, said Dr. Eric Tomlinson, President and CEO of Altea Therapeutics. These findings are very important to our clinical development program as they confirm efficient and constant delivery of basal insulin from our PassPort Patch. These results give us confidence that basal insulin transdermal patches can be a costeffective alternative for people currently using insulin injections to manage their diabetes. A higher patient acceptance of a basal insulin transdermal patch over needle injections enables physicians to start subjects earlier on insulin in the management of type 1 and type 2 diabetes. Market research conducted by Altea Therapeutics on its transdermal basal insulin product confirms significant market potential for a pain-free, convenient and cost-effective alternative to repeat insulin injections. Approximately 40 to 50 million people with type 2 diabetes and 10 million people with type 1 diabetes worldwide require insulin therapy. The worldwide market for all forms of insulin was over $7 billion in 2005 and is estimated at over $11 billion by 2011. The basal insulin is the fastest growing market and generated over $2.6 billion in 2005. About Altea Therapeutics Altea Therapeutics is an emerging specialty pharmaceutical company developing and commercializing products based on a new transdermal patch technology that can deliver sustained therapeutic levels of highly water-soluble drugs, carbohydrates, nucleic acids, peptides and proteins in a convenient, painless, and cost-effective manner.

Altea Therapeutics has demonstrated in several clinical studies that its patented PassPort transdermal system achieves what existing patches are unable to do, namely the continuous delivery through the skin of compounds that are typically administered by needle injections. The Company is conducting several clinical trials in the U.S. for its products, including for an insulin transdermal skin patch that provides continuous delivery of basal levels of insulin for people with diabetes, a fentanyl citrate transdermal skin patch that provides for rapid and safe management of moderate to severe pain, and an apomorphine hydrochloride transdermal skin patch for the convenient management of advanced Parkinsons disease. Furthermore, the Company is in pre-clinical development for a low molecular weight heparin patch for thromboses, parathyroid hormone analog for osteoporosis, and an atypical antipsychotic for the management of psychoses. Additional information about Altea Therapeutics may be found at www.alteatherapeutics.com.

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NOTE: Altea Therapeutics, PassPort, Medicines Made Better are either registered trademarks or trademarks of Altea Therapeutics Corporation, in the USA and/or other countries. All other brand names, product names, or trademarks belong to their respective holders. The statements in this press release regarding the products of Altea Therapeutics in development, product development plans, and projected financial results, are forward-looking statements involving risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the ability of Altea Therapeutics to both complete the design, development, and manufacturing process development of its products, manufacture and commercialize its products, obtain product and manufacturing approvals from regulatory agencies, manage its growth and expenses, finance its activities and operations, as well as marketplace acceptance of its products.