Vyteris Announces Successful Closing of Private Placement Raising $12.7 Million

Vyteris Inc. recently announced the completion of a new private placement financing transaction in which it raised $12.7 million in cash, for net proceeds of $11.4 million after legal and transactions costs of $1.3 million. This follows another financing round last October 2006 for $23.1 million.

This successful raise is another demonstration of continued investor confidence in our strategic plan, specifically the commercialization and rollout of our LidoSite active transdermal patch product into the U.S. physician office marketplace, where over two million blood draws are performed daily, said Timothy J. McIntyre, president and chief executive officer of Vyteris.

Use of proceeds from the financing are targeted for commercial rollout, including additions to the companys management expertise for commercialization, start up of a robust customer support system for the LabCorp partnership, initiation of the Vyteris specialty sales force, increase in manufacturing and product inventory for 2008, and supporting marketing and promotion activities for LidoSite, which will be available to the physician office market beginning the third quarter of 2007.

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 (FDA). Vyteris proprietary active transdermal drug delivery (iontophoresis) technology delivers drugs comfortably through the skin using low-level electrical energy. This active patch technology allows precise dosing, giving physicians and patients control in the rate, dosage and pattern of drug delivery that can result in considerable therapeutic, economical, and lifestyle advantages over existing methods of drug administration. Vyteris first product, LidoSite^{, which provides dermal analgesia prior to venipuncture (IV catheter insertions, blood draws, etc.) and superficial dermatological procedures, was the first FDA approved active patch.}

For more information, please visit www.vyteris.com