Cardium Provides Update on Exchange Listing and Related Business Matters

Cardium Therapeutics CXM reported that it had submitted a modified compliance plan designed to reestablish compliance with its exchange listing requirements in view of ongoing plans related to the acquisition of a revenue-generating nutraceutical business designed to expand the Company's MedPodium product line. In a related matter, the Company announced the incorporation of MedPodium Health Sciences, Inc., a new wholly-owned subsidiary established to develop the Company's nutraceutical and healthy lifestyle products, and to acquire complementary business assets having existing revenues and channels of distribution. The Company also announced that MedPodium Health Sciences would handle sales and distribution of Cardium's Excellagen™ product candidate pending FDA marketing clearance for its commercialization in the United States. As reported previously, a communication from the staff of the company's current listing exchange indicated that the company was considered to be noncompliant with one of the exchange's listing requirements based on its quarterly report for the period ended September 30, 2010, and provided that the company should submit a plan that would reestablish compliance with the listing requirement, particularly the requirements of section 1003(a)(iii) of the NYSE Amex Company Guide with respect to minimum "stockholders' equity" of $6.0 Million by August 26, 2011, which is an accounting standard essentially tracking net paid-in capital and retained earnings less cumulative losses since the Company began its operations and reporting in 2005. Unlike stocks listed on the NASDAQ, the NYSE Amex does not base compliance on stock price.