TORONTO, Ontario - March 23, 2007: AtheroMedix Inc. (“AtheroMedix”) today announced that it has completed a merger with Salpep Biotechnology Inc. (“Salpep”), a privately held biopharmaceutical company, in an all-share transaction. With the completion of the transaction, Salpep has become a wholly-owned subsidiary of AtheroMedix, which will manage the development programs for both companies’ technologies.

Salpep was founded by Drs. A. Dean Befus, Joseph Davison and Ronald D. Mathison, leading scientists in the fields of inflammation. The company’s feG peptide technology consists of several therapeutic candidates, with programs under development in the areas of asthma and spinal cord injury. Since its inception, Salpep has obtained extensive evidence of the efficacy of feG for these indications, through a number of research contracts with leading international investigators. In addition to the two lead indications, the technology has shown potential as a therapy for many other inflammatory and immune system disorders.

“Salpep’s technology will complement our development pipeline, allowing us to advance up to four separate programs through pre-clinical studies over the next 18 months”, said Richard Timmer, PhD, director of drug development for AtheroMedix.

Concurrent with the closing of the transaction, AtheroMedix also completed a private financing of $500,000 that will enable the company to finish validation studies over the coming months for the Salpep technologies. In addition, AtheroMedix plans to initiate additional studies with its own Ep1.B technology in the area of cardiovascular disease. The financing was raised from a consortium of private investors led by Biovest Inc. of Toronto.

“This acquisition and the planned studies will position AtheroMedix for a significant financing in the later part of 2007”, said Kamal Gautam, interim CEO of AtheroMedix, “and will help to create value for our shareholders prior to pursuing a partnering transaction in 2008.”

AtheroMedix’s development plan calls for the selection of a lead candidate in late 2007, which will be advanced through Phase I-enabling pre-clinical studies to meet the regulatory requirements for filing an IND/CTA application in the second half of 2008.

About AtheroMedix:

AtheroMedix is a privately held biotechnology company focused on the development of peptide-based therapeutic candidates for the treatment of asthma, cardiovascular disease, diabetes, spinal cord injury, and other inflammatory and immune disorders. Our therapeutic candidates are based on research from leading scientists at the University of Western Ontario and the University of Calgary. AtheroMedix is pursuing the pre-clinical validation and development of its lead candidates through a virtual business model being managed by BioQuest Innovations Inc.