Lung Rx will be responsible for funding the remainder of the development of treprostinil in the AERx inhaler through registration and commercial launch. Aradigm will receive full reimbursement of its expenses for activities on this program conducted for Lung Rx.

As previously announced, Dr. Gonda will be presenting at the Rodman & Renshaw 10th Annual Healthcare Conference on Tuesday, November 11, at 5:20 Eastern, at the Palace Hotel in New York City. The presentation can be accessed from the Company’s website at www.aradigm.com .

Lung Rx, Inc. is a biotechnology company focused on unmet medical needs in pulmonary medicine and pulmonary delivery of innovative therapeutic products.

Aradigm is an emerging specialty pharmaceutical company focused on the development and commercialization of a portfolio of drugs delivered by inhalation for the treatment of severe respiratory diseases by pulmonologists. Current activities include partnered and self-initiated development programs addressing the treatment of cystic fibrosis, bronchiectasis, pulmonary hypertension, bronchitis, inhalation anthrax infections and smoking cessation.

More information about Aradigm can be found at www.aradigm.com .

Except for the historical information contained herein, this news release contains forward-looking statements that involve risk and uncertainties, including statements relating to future program development, approval and commercialization, as well as the other risks detailed in Aradigm Corporation's Securities and Exchange Commission (SEC) Filings, including the Company's Annual Report on Form 10-K, and quarterly reports on Form 10-Q.

Aradigm, AERx, AERx Essence and the Aradigm logo are registered trademarks of Aradigm Corporation.

a Other names and brands may be claimed as the property of others.

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