To present the recent clinical results from iSONEP(TM)

Lpath Inc. reported positive summary results of its single-dose Phase 1 clinical trial of iSONEP(TM) in wet-AMD patients. iSONEP met its primary endpoint of being well tolerated in all 15 patients at dose-levels ranging from 0.2 mg. to 1.8 mg. per intravitreal injection (three patients per dose level). No drug-related serious adverse events were reported in any of the patients. iSONEP also succeeded in meeting a key secondary endpoint in that a positive biological effect was observed in an encouraging number of patients. Most of these positive effects appear to be largely independent of the effects seen when wet-AMD patients undergo treatment with Lucentis(R) or with off-label use of Avastin(R), the predominant market leaders. Due to the small sample size, all biological effects described above and below can only be characterized as correlative at this time; no causal relationship has yet been established, statistically or otherwise.

Lpath Inc. has been advised by Merck Serono, a division of Merck KGaA, (Darmstadt, Germany) that Merck Serono has exercised its right to extend the 'initial development period,' the period during which Lpath is responsible, in close collaboration with Merck Serono, for development of ASONEP(TM). While the ASONEP license agreement provided Merck Serono the right to extend this period to April 28, 2010, the parties agreed upon a revised date of June 27, 2010 in order to complete the Phase 1 study and various non-clinical studies undertaken to further the development of ASONEP as contemplated in the License Agreement. Lpath will continue to receive the previously agreed upon monthly research and development funding from Merck Serono until April 28, 2010. In addition, Lpath remains eligible to earn development milestone payments during the extension period.