Aradigm first quarter total revenue decreases to $0.2 million

Aradigm Corporation (OTC BB:ARDM.OB) (the "Company") today announced financial results for the first quarter and three months ended March 31, 2011.

Total revenue was $0.2 million for the first quarter of 2011, compared with $4.0 million in revenue for the first quarter of 2010. Revenue for the first quarter of 2010 reflects the receipt of the milestone payment due from Zogenix, Inc. upon the first U.S. sale of SUMAVEL DosePro needle-free delivery system for treatment of acute migraine and cluster headaches. Revenue for the first quarter of 2011 reflects the quarterly royalty payment from Zogenix for SUMAVEL product sales.

Total operating expenses for the first quarter of 2011 were $2.6 million, compared with total operating expenses of $4.1 million for the first quarter of 2010. The decrease in operating expenses was primarily due to expense reduction efforts and lower expenses from the Company's inhaled liposomal ciprofloxacin clinical trials. The Company's net loss for the first quarter of 2011 was $2.4 million, or $0.01 per share, compared with a net loss of $0.2 million, or $0.00 per share, for the same period in 2010.

As of March 31, 2011, cash, cash equivalents and short-term investments totaled $3.1 million.

Recent Highlights

• Dr. Paul Bruinenberg, the Company's Senior Medical Director, will be presenting a poster at the American Thoracic Society's 2011 ATS International Conference in Denver, Colorado on May 17, 2011. The poster title is "Inhaled Liposomal Ciprofloxacin Significantly Reduces Sputum Pseudomonas Aeruginosa (PA) Density and Increases Time to First Exacerbation in a 168 day Placebo Controlled Study in Non-Cystic Fibrosis Bronchiectasis" and will present results from the Company's ORBIT-2 clinical trial.
• The Company will be presenting a poster at the 34^th European Cystic Fibrosis Conference in Hamburg, Germany. The poster title is "Safety, Tolerability and Pharmacokinetics of Novel Liposomal Ciprofloxacin Formulations for Inhalation in Healthy Volunteers and Non-Cystic Fibrosis Bronchiectasis Patients" and will be available for viewing from June 8-June 11, 2011.
• The Company received Notices of Allowance from the U.S. Patent and Trademark Office for the Company's trademark applications for Lipoquin™ and Pulmaquin™ to be used as marks for ARD-3100 and ARD-3150, respectively.

"We continue to make focused clinical and regulatory progress with our inhaled liposomal ciprofloxacin treatments ARD-3100 and ARD-3150, now known as Lipoquin™ and Pulmaquin™, and are projecting to report the results from the ORBIT-1 Phase 2b study in non-cystic fibrosis bronchiectasis later in the second quarter of 2011. We are also actively engaged in discussions with potential partners to move the inhaled liposomal ciprofloxacin program forward into Phase 3," said Igor Gonda, CEO and President of Aradigm.