NASDAQ Approves Arrowhead Research Corporation for Trading on SmallCap Market

PASADENA, Calif.--(BUSINESS WIRE)--Aug. 30, 2004--Arrowhead Research Corporation (OTCBB: ARWR), an emerging company in the field of nanotechnology, announced today that NASDAQ has approved the Company's common stock and common stock purchase warrants (ARWRW) for listing on the NASDAQ SmallCap Market(TM), subject to certain conditions. The Company expects its stock to begin trading on the SmallCap Market within the next ten trading days.

Commenting on the approval, R. Bruce Stewart, President of Arrowhead Research, said, "The move from the OTC to NASDAQ is an important step for us and our continuing development as a public company. We are pleased that we have met the stringent requirements for NASDAQ SmallCap listing and expect improved liquidity for Arrowhead's securities."

“The move from the OTC to NASDAQ is an important step for us and our continuing development as a public company. We are pleased that we have met the stringent requirements for NASDAQ SmallCap listing and expect improved liquidity for Arrowhead's securities.”

About Arrowhead Research Corporation

Arrowhead Research is a development-stage nanotechnology company optimally structured to bring together a diverse and innovative mix of technologies, rights to a broad suite of intellectual property, and some of the most respected minds in this dynamic field. There are three strategic components to Arrowhead's business model:

-- The formation or acquisition of subsidiary companies that are engaged in research and development in various stages, or are pursuing specific product and technology development in nanotechnology.

-- The funding of nanoscience research at universities in exchange for the right to commercialize resulting intellectual property.

-- The acquisition, license and sublicense of intellectual property in the field of nanotechnology.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including the recent economic slowdown affecting technology companies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. Our Annual Report on Form 10-K and 10-K/A, recent and forthcoming Quarterly Reports on Form 10-Q and 10-Q/A, recent Current Reports on Forms 8-K and 8-K/A, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.