Discovery Labs regains compliance with Nasdaq Minimum Bid Price Rule

Jan 12 2011

Discovery Laboratories, Inc. (Nasdaq:DSCOD) announced today that, on January 11, 2011, a NASDAQ Listing Qualifications Panel (the "Panel") determined that Discovery Labs has regained compliance with Nasdaq Listing Rule 5550(a)(2) ("Minimum Bid Price Rule") because its common stock has maintained a minimum closing bid price of $1.00 per share over a period of 10 consecutive business days ending on January 10, 2011. The Panel also determined that Discovery Labs is in compliance with all other listing standards for continued listing on The NASDAQ Capital Market^® ("Nasdaq Capital Market"). Accordingly, Discovery Labs' common stock will continue to be listed on the Nasdaq Capital Market.

As previously announced, on November 30, 2010, Discovery Labs received a Staff Determination letter from The Nasdaq Stock Market indicating that it had not re-established compliance with the Minimum Bid Price Rule on or prior to November 29, 2010 and, as a result, its common stock was subject to delisting from the Nasdaq Capital Market. Discovery Labs requested a hearing before the Panel and, at the hearing, presented its plan for achieving compliance with the Nasdaq listing requirements. The plan included implementing a 1-for-15 reverse stock split, which was approved by Discovery Labs' stockholders at the Annual Meeting of Stockholders held on December 21, 2010 and made effective on December 28, 2010.

Discovery Labs' shares will continue to trade on the Nasdaq Capital Market under the symbol "DSCOD" through approximately January 25, 2011, after which the fifth character "D" will be dropped and the symbol will revert to "DSCO." The fifth character was added to the trading symbol to notify investors of the occurrence of the reverse stock split.