Rexahn Awarded Maryland Industrial Partnerships Grant to Develop Polymer-drug Conjugates for Cancer Therapy

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ROCKVILLE, Md.--(BUSINESS WIRE)--

Rexahn Pharmaceuticals, Inc. (OTC BB: RXHN), a biopharmaceutical company dedicated to the discovery, development, and commercialization of innovative treatments for cancer, central nervous system disorders, sexual dysfunction and other unmet medical needs, today announced that it has been awarded a grant totaling $217,761 through the Maryland Industrial Partnerships Program (MIPS). With the grant, researchers at Rexahn and the University of Maryland Baltimore (UMB), will continue their joint development of polymer-drug conjugates for cancer therapy, for the targeted delivery of cancer drugs.

This most recent MIPS funding follows a similar grant received from MIPS in 2007 which was applied toward the successful first phase of this ongoing development project between Rexahn and UMB.

The Maryland Industrial Partnerships (MIPS) program is designed to accelerate the commercialization of technology in Maryland by jointly funding collaborative R&D projects between companies and University System of Maryland faculty. In addition to the grant announced today and that received in 2007, Rexahn also received a MIPS grant in 2005 for the discovery of cancer drug candidates using cutting-edge NMR technology. That MIPS project was successfully completed.

Rexahn is one of 18 companies to receive this latest round of MIPS funding and is the only research project focused on nano-drug delivery solutions. By using water soluble nano-polymer based drug delivery systems, Rexahn's biopharmaceutical compounds have the potential to enhance the safety profile and increase the efficacy of chemotherapeutics by selectively targeting tumor cells. If successful, this would bring significant benefit to cancer patients and the healthcare system, alike.

Rexahn's Chairman and Chief Executive Officer, Dr. Chang Ahn, noted, "We are honored to have received yet another grant from MIPS for our continued cancer therapy research. Rexahn has the opportunity to potentially revolutionize the market for anti-cancer treatment. Our long-term plan is to develop and deliver to market a range of innovative, targeted therapeutics with drastically reduced side effect profiles than current treatments -- which are highly toxic and can be lethal - now provide. Our ability to achieve this would allow Rexahn to offer patients and the medical community important treatment alternatives and would result in significant improvements in patients' quality of life. The current grant from MIPS gives us the resources we need to take our work with the talented research team at UMB, to the next level."

In 2006, Rexahn and the UMB's Center for Nanomedicine and Cellular Delivery also entered into a unique collaboration aimed at finding novel ways of applying the Center's research and nanomedicine expertise to improve the pharmaceutical properties of Rexahn's drugs in development.

About Rexahn Pharmaceuticals, Inc.

Rexahn Pharmaceuticals is a biopharmaceutical company leveraging its unique technology platform to discover, develop and commercialize innovative treatments for cancer, central nervous system disorders, sexual dysfunction and other unmet medical needs. Rexahn's compounds are designed to uniquely treat various disease states while significantly minimizing side effects in order to allow patients to regain quality of life through therapy. For Additional information about Rexahn, visit www.rexahn.com.

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This press release contains statements (including projections and business trends) that are forward-looking statements. Rexahn's actual results may differ materially from the anticipated results and expectations expressed in these forward-looking statements as a result of certain risks and uncertainties, including, Rexahn's lack of profitability, its auditor's going concern qualification and the need for additional capital to operate its business to develop its product candidates; the risk that Rexahn's development efforts relating to its product candidates may not be successful; the possibility of being unable to obtain regulatory approval of Rexahn's product candidates; the risk that the results of clinical trials may not be completed on time or support Rexahn's claims; demand for and market acceptance of Rexahn's drug candidates; Rexahn's reliance on third party researchers and manufacturers to develop its product candidates; Rexahn's ability to develop and obtain protection of its intellectual property; and other risk factors set forth from time to time in our filings with the Securities and Exchange Commission. These forward-looking statements are made as of the date hereof, Rexahn assumes no obligation to update these forward-looking statements.

Source: Rexahn Pharmaceuticals, Inc.

Released February 25, 2008