Update on Ampligen

[Guest guest]

I pulled this from another e-board for CFS-ME-Fibro whichI subscribe

to. Thought it might be of interest;

April 13, 2006

Dear Shareholders,

I would like to take this opportunity to review what has been

accomplished in the 1st Quarter of 2006 and lay out for you some of

the objectives targeted for the rest of the year.

The initial results of three avian influenza related studies

initiated in the summer of 2005 were presented at two conferences,

the ASM Biodefense Research Meeting in Washington, D.C. and the VIII

International Symposium on Respiratory Viral Infections in Hawaii.

New tests provided further evidence that Alferon LDO (Low Dose

Oral), a new delivery for an anti-viral with prior regulatory

approval for a category of sexually transmitted diseases, offers

tremendous potential in resisting the spread of avian flu by

stimulating genes that induce the production of immune compounds that

are key building blocks in the body & #146;s defense system.

Additional research suggests that the activity of Tamiflu and

Relenza, the only two drugs formally recognized for combating bird

flu, can be boosted up to 100 times when co-administered with

Ampligen®. Lab studies reveal that 50 to 100 times less Tamiflu may

be used in conjunction with Ampligen® to achieve full inhibition with

no multiplication of the virus, and no host cell damage.

Finally, in animal studies conducted in collaboration with the

National Institute of Infectious Diseases in Japan, it was found that

the co-administration of our experimental immunostimulant Ampligen®,

a specifically configured double-stranded RNA, may help enable

substantial reductions in an H5N1 vaccine dose, as well as provide

cross-protection against mutated strains of the H5N1 virus.

In further collaboration with the National Institute of Infectious

Disease in Japan, we have commenced primate studies in the co-

administration of Ampligen® with H5N1 vaccines in Japan. The studies

are uniquely focused on the cross protection that Ampligen® provides

to vaccines across mutated strains. These studies should be concluded

and results presented in the 2nd Quarter of 2006. Our collaboration

with our Japanese associates has proven to be highly productive. Our

ambition is to continue and expand upon this relationship over time.

Studies are continuing along each of the three paths regarding

avian influenza and progressing to what we anticipate will be NDA

filings. If expedited guidelines are implemented by the FDA in

response to the avian influenza threat, our time line to an NDA for

this indication could be moved up significantly.

Irrespective of the threatened avian influenza pandemic or

anticipated expedited approval guidelines, the ongoing trials have

heightened the awareness of our drugs & #146; activity as immunostimulants.

Recognition of our drugs & #146; capabilities as stand-alone antivirals and

activity when co-administered with a vaccine have highlighted the

broad spectrum of opportunities in our future.

While we have and are pursuing the extremely promising avian

influenza studies through the efforts of our contract partners, our

primary internal resources have been, and continue to be, focused on

completing and filing our NDA for CFS. In the 1st Quarter we

completed the construction of a facility within our New Brunswick

plant to produce raw materials for the manufacture of Ampligen®.

This in house capability will aid in fulfilling the manufacturing

requirements of the Ampligen® CFS NDA. The pre-clinical section of

the Ampligen® CFS NDA is on schedule to be completed by the end of

this month. We anticipate having a pre NDA meeting with the FDA in

late June of this year to obtain FDA input and thoughts on our

Ampligen® CFS NDA filing and thereby allow us to maximize the

presentation of our filing, which is on target to be completed and

filed by year end.

The audited results of our Phase III trials with Ampligen® for

Chronic Fatigue Syndrome (CFS) will be presented at the 5th

International Conference on HHV-6 & 7 in Barcelona, Spain, April 30 & #150;

May 6, 2006.

The status of our trials and our path to commercialization will be

presented at Rodman and Renshaw conferences in Monaco (May 15 and 16)

and in New York City (June 9).

Our balance sheet and liquidity are stronger than ever. No small

part of this accomplishment is due to our July 2005 financing

agreement with Fusion Capital. We completed our $20 million agreement

with Fusion in the first quarter of 2006. In addition to

strengthening our balance sheet, access to this capital allowed us to

enhance our manufacturing capabilities in compliance with federal

guidelines. We have entered into a new financing agreement with

Fusion Capital that provides us with the option to obtain up to an

additional $50 million. We feel very fortunate to have the

availability of this financing at the very time we are on the cusp of

commercialization as it will provide us with significant flexibility

in pursuing optimal commercial success. The Fusion Capital $50

million financing agreement will be on the agenda for approval by

stockholders at the annual stockholders meeting on June 21, 2006.

During the preparation of our annual report on Form 10-K for

2005, it was determined that the 2003 interpretation of the

accounting guidelines to account for our convertible debentures was

incorrect resulting in financials that should not be relied on. As a

result, the filing of our 10-K with audited financial statements has

been delayed and we are restating our historical financial statements

to account for non-cash expenses reflected in our interim financial

statements from 2003 through 2005 and our annual financial statements

for 2003 and 2004. This accounting problem reflected a weakness in

our internal control process pursuant to Section 404 of the Sarbanes

Oxley Act.

These non-cash charges do not affect our revenues, cash flows, or

liquidity. We emphasize that the delayed filing in no way reflects

upon our financial stability or accounting ethics and, based upon the

representations of our independent accountants expect to complete the

10-K filing with audited financial statements within 30 days of April

3, 2006. We have always adhered to the most conservative and ethical

standards of accounting and governance.

Our focus has firmly been upon building solid science that will

deliver peer support, regulatory approval and lead to commercial,

revenue generating relationships. We are well on the path to

accomplishing our objectives.

Sincerely,

A. , M.D.

Chairman of the Board and

Chief Executive Officer

(The person who posted this also mentioned that he had attempted to

get this drug before; it seems that it helps some, does not help

others. Also, it seems that it has some effect on Avian Flu.)

I have to say this; why is it that OUR damn country can't take this

illness as seriouslyas these other contries do? What the HELL is

their damn problem?! (Makes me JUST FURIOUS!!)

Jane