ANN ARBOR, MICH., Oct. 6, 2003 –Velcura Therapeutics™, Inc. recently was awarded a $224,000 Phase 1 SBIR (Small Business Innovation Research) grant from the National Institute on Aging, National Institutes of Health (NIH).

"The NIH grant enables us to extend and refine our studies into the molecular processes underlying human bone formation," said Dr. Michael W. Long, the President and CEO of Velcura Therapeutics™, Inc. "Coupled with our in-depth ability to analyze bone cell gene expression and function, these technologies greatly expand our ability to discover novel targets and therapies for osteoporosis."

The Phase 1 grant "Regulation of the Human Osteoblast Proteome" covers six months. Then the company is eligible to apply for a Phase II award covering an additional two years.

The research will be done in collaboration with Proteomic Research Services of Ann Arbor, Mich., according to Dr. Long, who has received more than $12 million in NIH funding for research during his career.

About Velcura Therapeutics™, Inc.

Based in Ann Arbor, Mich., this biotechnology company is involved in developing new and better therapies for osteoporosis and other bone diseases. Velcura Therapeutics™, Inc. builds on its patented technology and ability to rapidly isolate and analyze human bone cells, and the company can grow human bone in tissue cultures outside the body (ex vivo) using a rapid (7-10 days) and reliable method to identify therapeutic targets aimed at stimulating human bone formation. Founded in 2001 by Dr. Long and CFO Mary Ann Alger, the company was the grand prize winner in the first annual Great Lakes Entrepreneurs Quest, a Michigan Business Plan Competition (www.gleq.org) and in 2002 received a $3.3 million grant from the Michigan Life Science Corridor. Velcura Therapeutics™, Inc. has an exclusive license agreement with the University of Michigan.