Neoprobe Secures $13 Million in Venture Capital Funding

Neoprobe Corporation, a diversified developer of innovative oncology and cardiovascular surgical and diagnostic products, recently announced that it had signed definitive agreements for a $13 million financing with Platinum Montaur Life Sciences LLC (Montaur).

The first funding under the Securities Purchase Agreement between Neoprobe and Montaur is for $7 million, which will be used to repay in full $5.7 million in notes that were due in January 2009. In addition, funding from the first closing will retire 10,125,000 in warrants to purchase shares of Neoprobe common stock that were associated with the notes due in 2009. Montaur has committed to additional funding aggregating $6 million that will be used to support the development of Lymphoseek^.

Michael Goldberg, M.D., Principal of the Montaur Capital Partners, LLC and Portfolio Manager of the Platinum Montaur Life Sciences Fund, said, Neoprobe represents an excellent investment opportunity. They have established a dominant position in the gamma detection medical device arena, they have structured a Lymphoseek marketing and distribution agreement with Cardinal Health, the premier radiopharmaceutical organization in the United States, and they are poised to commence the Phase 3 clinical evaluation of Lymphoseek that we believe will transform the companys revenue and profitability outlook.

David Bupp, Neoprobes President and CEO, said, We are very pleased to complete the financing with Montaur, which provides us with the financial resources to complete the clinical and other development activities associated with Lymphoseek. Coupled with the recently completed marketing and distribution agreement for Lymphoseek in the United States and the recently extended marketing agreement for our gamma detection device products, we believe Neoprobe is prepared to take the next steps in our evolution as a multiple product biomedical company with both device and drug revenues.

WBB Securities LLC served as the sole placement agent on the transaction with Montaur.

Lymphoseek is a proprietary radioactive tracing agent being developed for use in connection with gamma detection devices in a surgical procedure known as Intraoperative Lymphatic Mapping (ILM). Neoprobe has discussed with FDA protocols for the conduct of Phase 3 clinical evaluations of Lymphoseek in patients with either breast cancer or melanoma. Pending the completion of the Phase 3 protocol review by FDA and obtaining the consent of the institutions who will conduct the Phase 3 studies, Neoprobe intends to commence enrollment in the Phase 3 trials in the first quarter of 2008.

Neoprobe is a biomedical company focused on enhancing patient care and improving patient outcome by meeting the critical intraoperative diagnostic information needs of physicians and therapeutic treatment needs of patients. Neoprobe currently markets the neo2000 ^{line of gamma detection systems that are widely used by cancer surgeons and is commercializing the Quantix line of blood flow measurement products developed by its subsidiary, Cardiosonix Ltd. In addition, Neoprobe holds significant interests in the development of related biomedical systems and radiopharmaceutical agents including Lymphoseek and RIGScan CR. Neoprobes subsidiary, Cira Biosciences, Inc., is also advancing a patient-specific cellular therapy technology platform called ACT. Neoprobes strategy is to deliver superior growth and shareholder return by maximizing its strong position in gamma detection technologies and diversifying into new, synergistic biomedical markets through continued investment and selective acquisitions.}

For more information, please visit www.neoprobe.com