To: National Desk, Health, Science, Business, and International Reporters

Contact: Alicia Moran of Brightline Media, 703-739-2424 ext. 110 or alicia@brightlinemedia.com or Teresa Guillien of PATH, 206-285-3500 or tguillien@path.org

ROCKVILLE, Md., Oct. 31 /U.S. Newswire/ -- Sequella Inc., a clinical-stage biopharmaceutical company focused on commercializing improved treatment paradigms for diseases of epidemic potential, announced today a partnership with PATH, an international non-profit organization committed to finding sustainable solutions to break longstanding cycles of poor health worldwide. Under the terms of the agreement, through funding obtained from US Agency for International Development (USAID) and other sources, PATH and Sequella will conduct dose-ranging and clinic-based performance evaluations of the Sequella TB Patch, a tuberculosis diagnostic. The studies will occur in Ukraine and involve the enrollment of over 300 patients.

"We hope this is the beginning of a long and productive partnership with PATH and its distinguished team of experts," said Dr. Carol Nacy, CEO of Sequella. "Our collective goal is to make available a more accurate and cost-effective TB diagnostic product in Ukraine and elsewhere in the world. This clinical evaluation will provide important performance data about the TB Patch as we move toward global commercialization."

Like many eastern European countries, Ukraine is facing a growing TB epidemic due to higher incidence rates of multiple drug resistant (MDR) disease strains and rising HIV infections. PATH and Sequella will collaborate closely on the Patch evaluation studies. PATH has been working in Ukraine since 2003 to control the spread of TB -- one of the leading causes of death in the world from a single-agent infectious disease.

"Collaboration and partnerships are essential to the success and sustainability of our work, said Matt Steele, Ph.D., Program Officer at PATH. "We collaborate extensively with the WHO, UNICEF, UNFPA, government ministries, foundations, and local groups in the communities we serve. We are pleased to have formed this collaboration with Sequella to test this technology and determine if it can help health care providers to properly and quickly detect and treat TB disease in adults and children around the world, a priority for global health."

The TB Patch is a proprietary point-of-care diagnostic designed to detect and diagnose active tuberculosis (TB) disease. TB Patch Phase II data showed an overall 89 percent sensitivity and 96 percent specificity in four clinical trials in the Philippines and South Africa, across a wide range of TB disease stages. Sequella holds the worldwide licensing rights, excluding Japan, for the TB patch.

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About Tuberculosis

TB is a contagious infectious disease caused by the bacterium Mycobacterium tuberculosis. TB bacteria can be inhaled into lungs and without containment by immune cells, the bacteria can spread throughout the body, multiply, survive and remain dormant for years. More than 8 million new cases of active TB disease are reported every year. The World Health Organization (WHO) estimate that one-third of the world's population is infected with TB.

About Sequella Inc.

Sequella is a clinical-stage biopharmaceutical company focused on commercializing improved treatment paradigms for diseases of epidemic potential. The company leverages its global influence, infectious disease expertise and diverse product portfolio to proactively address emerging health threats with significant market opportunity. For more information, visit http://www.sequella.com.

About PATH

PATH is an international, nonprofit organization that creates sustainable, culturally relevant solutions, enabling communities worldwide to break longstanding cycles of poor health. By collaborating with diverse public- and private-sector partners, PATH helps provide appropriate health technologies and vital strategies that change the way people think and act. Headquartered in Seattle, Washington, PATH has approximately 500 staff members and 24 offices in 14 countries: Cambodia, China, France, India, Indonesia, Kenya, Nicaragua, Senegal, South Africa, Tanzania, Thailand, Ukraine, Vietnam and the United States.

Forward-Looking Statement

This press release contains forward-looking statements that are subject to risks and uncertainties, and includes statements that are not historical facts. Actual results could differ significantly from results discussed. Sequella disclaims any intent or obligation to update forward-looking statements, except as required by law.

http://www.usnewswire.com/

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/© 2006 U.S. Newswire 202-347-2770/

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