August 27, 2008: Arrowhead Research Corp., a publicly traded nanotechnology company, sold 2.5M units of common stock and common stock purchase warrants in a registered direct offering to investors, the large majority of whom are long-standing Arrowhead shareholders. Members of Arrowhead’s senior management participated in the offering, including CEO Chris Anzalone, who invested more than $300,000.

Gross proceeds will be approximately $4.4M; net proceeds from this offering will help fund operations and contribute to Arrowhead’s runway to monetization events of its subsidiaries.

“We thought it prudent to increase our liquidity during this time of general market uncertainty,” said Anzalone. “However, we are also sensitive to dilution of our shareholders, so we were careful with the amount of capital raised at this time. We are proud that this offering was completed entirely from current shareholders and senior management.”

The company may sell up to an additional 3,095,968 units in follow-on offerings at $1.80 per unit (or $1.83 per unit if purchased by a director or officer). The offering is expected to remain ongoing until September 15, 2008 and the company will make additional SEC filings to report follow-on investments. Such additional securities may be offered only by means of a prospectus supplement.