Nile Therapeutics to fund ongoing Phase II clinical trial of CD-NP with proposed public offering

Nile Therapeutics, Inc. (Nasdaq: NLTX), a company focused on the development of novel therapeutics for heart failure patients, announced today that it intends to offer units consisting of shares of its common stock and warrants to purchase shares of its common stock in a public offering.  Maxim Group LLC is acting as the sole book-running manager for this offering, with Ladenburg Thalmann & Co. Ltd. as co-manager.

The Company plans to use the net proceeds from this offering to fund the previously announced expansion of its ongoing Phase II clinical trial of CD-NP in acute heart failure patients, and for general corporate purposes and working capital. The offering is being made pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission. A prospectus supplement relating to the offering will be filed with the Securities and Exchange Commission. When available, copies of the prospectus supplement relating to this offering may be obtained from Maxim Group LLC, 405 Lexington Avenue, New York, NY  10174, or by telephone at 212-895-3685.