ANN ARBOR, Mich., Jan. 28, 2011 /PRNewswire/ — Adeona
Pharmaceuticals, Inc. (Amex:
AEN), a developer of innovative medicines for serious central
nervous system diseases, announced today that it has executed an
agreement for the sale of approximately 2.85 million shares of its
common stock at $1.40 per share to two new institutional investors
in a registered direct offering for $4 million in gross proceeds.
The investors will also receive warrants to purchase approximately
1.42 million shares of common stock at an exercise price of $2.00
per share. The warrants are exercisable upon issuance for a period
of 13 months from the closing date.  If exercised for cash,
the warrants are expected to generate up to an additional $2.85
million in proceeds to Adeona.

“This financing will allow us to continue developing our
zinc-based therapy currently in a clinical study and, if clinical
results are positive, will allow us to further our
commercialization efforts as a prescription medical food for
Alzheimer’s disease,” stated James S. Kuo, M.D., M.B.A., Adeona’s
Chairman and CEO.

The offering is expected to close on or before February 2, 2011,
subject to customary closing conditions, including approval by the
NYSE AMEX. The net proceeds of approximately $3.7 million will be
used for general corporate purposes, including conducting
operations and advancing our clinical development programs.

Chardan Capital Markets acted as the sole placement agent for
this transaction.

The shares and warrants are being offered in a registered direct
offering under the Company’s effective shelf registration statement
previously filed on Form S-3 with the Securities and Exchange
Commission (SEC).  This offering will be made by means of a
prospectus supplement and the accompanying base prospectus, copies
of which may be obtained, when available, from

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