Vyteris Announces Plans to Pursue Strategy for Transdermal Drug Delivery Technology

Vyteris, Inc. (OTCBB: VYHN), manufacturer of the first FDA-approved active patch transdermal drug delivery system, informed its shareholders of important plans to pursue an aggressive partnership and licensing strategy for its transdermal drug delivery technology, as well as restructuring of its board, management and capitalization.

“With the recent changes made to strengthen the company’s management and strategic plan, we believe we are in a stronger position to pursue our key objectives for development of our Smart Patch technology in additional pharma product lines,” said Donald F. Farley, executive chairman for Vyteris, Inc. “The development program with Ferring has shown successful demonstration of peptide molecule delivery and attempts to forge partnerships with other peptide drug developers is a roadmap we will aggressively pursue.”

In a letter to Vyteris shareholders, which was made public by the Company yesterday in an 8-K filed with the SEC, Farley outlined the company’s strategic focus moving forward in three key areas:

Assure Technical Success of the Ferring Project

Basic Phase 1 clinical testing goals have been completed and optimization studies to determine best dosage and related variables are in progress. Vyteris is progressing in manufacturing planning for Phase 2 clinical supplies and is poised to meet needs when Ferring makes the decision to initiate Phase 2. Under the current agreement with Ferring, a $2.5 million milestone payment will be earned when Ferring elects to initiate Phase 2 clinical trials and a $3.0 million milestone will be earned at commencement of Phase 3.

Peptide Development Program

Based on Vyteris’ prior experience with peptide feasibility work and progress-to-date with the Ferring project, a comprehensive program is being launched to identify and secure another peptide development program in 2008, to manage a biotech outreach initiative to secure additional peptide collaborations for 2009 and, finally, to establish a licensing initiative for new peptides.

Biopharmaceutical Development Program

A number of biopharmaceuticals have been qualified as ideal candidates for Vyteris’ Smart Patch technology. In some cases, preliminary feasibility work has already been completed. Vyteris now plans to undertake a much more active role in generating collaborative development programs in this area. This includes:

• Targeting pharma companies proprietary molecular candidates and seek to engage them in a collaboration aimed at extending patent life, improving therapeutic outcomes and/or creating a generic specialty; and
• Selecting specific generic molecules or those approaching the end of their patent lives, and initiate proposals for a development program. Vyteris will take a leadership role and recruit pharma partners.

About Vyteris, Inc.

Vyteris, Inc., a wholly owned subsidiary of Vyteris Holdings (Nevada), Inc. (OTCBB: VYHN), is the maker of the first active drug delivery patch to receive marketing clearance from the U.S. Food and Drug Administration. Vyteris’ proprietary active transdermal drug delivery (iontophoresis) technology delivers drugs comfortably through the skin using low-level electrical energy. This active patch technology allows for the potential of precise dosing, giving physicians and patients control in the rate, dosage and pattern of drug delivery that may result in considerable therapeutic, economical, and lifestyle advantages over existing methods of drug administration. For more information, please visit our website at www.vyteris.com.

Vyteris Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as “expect,”“estimate,” “project,”“anticipate,” “intend,”“plan,” “may,”“will,” “could,”“would,” “should,”“believes,” and similar expressions are intended to identify such forward-looking statements. Forward-looking statements in this press release include, without limitation, statements concerning the potential impact of the new marketing agreement and other matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others, the competitive environment and competitive responses to the new marketing arrangement. The Company has described other important risks and uncertainties under the caption "Risk Factors" in its most recent Annual Report on Form 10-KSB and other various filings made with the SEC. Actual results may differ materially from those contained in the forward-looking statements in this press release.

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