NovaDel Announces $14 Million Financing

Pursuant to a Securities Purchase Agreement (the Agreement) dated December 14, 2006, NovaDel Pharma Inc. announced recently that it has entered into an agreement for the issuance and sale of approximately 10 Million shares of the Company’s common stock to new and existing investors to raise approximately $14 million in gross proceeds in a common stock private equity offering.

“NovaDel plans to use the proceeds of this transaction to fund the development of our growing pipeline of oral spray drug candidates and build on the recent FDA approval of our first compound, NitroMist(TM). We are very excited about our development pipeline which includes ondansetron Oral Spray that is currently under late stage FDA review through our partner Hana Biosciences, Inc., two candidates projected to be submitted with the FDA for approval next year and two additional compounds we expect will enter the clinic during 2007,” said Jan H. Egberts, M.D., President and Chief Executive Officer of NovaDel. “We are pleased to have the support and confidence of both new and existing institutional investors as we advance Sumatriptan Oral Spray and Zolpidem Oral Spray toward registration and continue to expand our pipeline.”

NovaDel will issue and sell 9,823,983 shares of common stock plus warrants to purchase 3,929,593 shares of common stock. Investors will purchase shares of common stock at the offering price of $1.45 per share, and will received .4 warrants per share of stock expiring December 14, 2011 with an exercise price equal to $1.70 per share. Closing of the offering is expected to occur by December 29, 2006.

The securities were offered to accredited investors in reliance on an exemption from the registration requirements of the Securities Act of 1933 (the “Securities Act”). The offering has not been registered under the Securities Act or any state securities or “blue sky” laws and the shares may not be offered or sold absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. NovaDel agreed, subject to certain terms and conditions, to file a registration statement under the Securities Act covering the resale of the shares purchased and shares issuable upon exercise of the warrants.

NovaDel Pharma Inc. is a specialty pharmaceutical company engaged in the development of novel drug delivery systems for prescription and over-the-counter drugs. The Company’s proprietary oral spray technology delivery system offers the patient the potential for (i) more rapid delivery of drugs to the bloodstream allowing for quicker onset of therapeutic effects compared to conventional oral dosage forms; (ii) increased bioavailability of a drug by avoiding metabolism by the liver; (iii) improved drug safety profile by reducing the required dosage, including possible reduction of side effects; (iv) improved dosage reliability; (v) allowing medication to be taken without water; (vi) avoiding the need to swallow as is the case with many medications; and (vii) improved patient convenience and compliance. The Company plans to develop such products independently and through collaborative arrangements with major pharmaceutical and biotech companies.

For more information, please visit www.novadel.com