DOR BioPharma Announces Private Equity Financing of $3.65 Million with Institutional Investors

DOR BioPharma, Inc. ("DOR" or the "Company") (AMEX:DOR)
announced that it has entered into definitive agreements for the sale
of securities in a private placement to institutional investors with
gross proceeds to the Company of approximately $3.65 million.
   Under the terms of the financing, in exchange for gross proceeds
of approximately $3.65 million, DOR will issue, subject to customary
closing conditions, approximately 13.2 million shares of common stock
and warrants to purchase approximately 13.2 million shares of common
stock exercisable at $0.45. The expiration date of the warrants will
be accelerated if the Company's common stock trades in excess of $1.69
for 20 trading days during any 30 consecutive trading day period. Upon
the exercise of all the warrants, DOR could receive additional gross
proceeds of approximately $5,900,000.
   The Company plans to use the proceeds from the financing for (i)
further clinical and preclinical development of its biodefense vaccine
development programs for ricin and botulinum toxins; (ii) continuation
of regulatory interaction with the FDA for orBec(R) (oral
beclomethasone dipropionate) including the upcoming NDA filing; (iii)
potential acquisition and/or in-licensing of additional clinical stage
products; and (iv) general corporate purposes. Based upon current
projections and the Company's relatively low burn rate, the proceeds
from this private equity financing should allow DOR to fund operations
into early 2007.
   "This financing provides working capital we need to file the NDA
for orBec(R) and strengthens our balance sheet," stated Michael T.
Sember, DOR's President and Chief Executive Officer. "We expect that
2006 will be an eventful year for DOR as we are looking forward to our
NDA filing and potential approval of orBec(R)"
   The securities offered by the company to accredited investors in
the private placement were sold in reliance on an exemption from the
registration requirements of the Securities Act of 1933, as amended
(the "Securities Act"). The securities have not been registered under
the Securities Act or any state securities laws, and the securities
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. In connection with the offering, DOR
has agreed to file a registration statement under the Securities Act
covering the resale of the shares purchased within thirty (30) days.
This press release does not and will not constitute an offer to sell
or the solicitation of an offer to buy shares and is being issued
under Rule 135c under the Securities Act.

   About DOR BioPharma, Inc.

   DOR BioPharma, Inc. is a biopharmaceutical company addressing
life-threatening side effects of cancer and cancer treatments, serious
gastrointestinal diseases and disorders, and biomedical
countermeasures. Our lead product, orBec(R) (oral beclomethasone
dipropionate), is a potent, locally-acting corticosteroid being
developed for the treatment of intestinal Graft-versus-Host disease
(iGVHD), a common serious complication of bone marrow transplantation
for cancer, as well as other GI disorders characterized by severe
inflammation. We plan to file a new drug application (NDA) with the
FDA for orBec(R) for the treatment of iGVHD by second quarter 2006.
   Through our BioDefense Division, we are developing biomedical
countermeasures pursuant to the paradigm established by the recently
enacted Project BioShield Act of 2004. Our biodefense products in
development are bioengineered vaccines designed to protect against the
deadly effects of ricin toxin and botulinum toxin, both of which are
considered serious bioterrorism threats. Our ricin toxin vaccine,
RiVax(TM), has successfully completed a Phase I clinical trial in
normal volunteers. We have also initiated a botulinum toxin
therapeutic development program based on rational drug design.
   For further information regarding DOR BioPharma, please visit the
Company's website located at http://www.dorbiopharma.com.

   This press release contains forward-looking statements, within the
meaning of Section 21E of the Securities Exchange Act of 1934, that
reflect DOR BioPharma's current expectations about its future results,
performance, prospects and opportunities, including statements
regarding the potential use of orBec(R) for the treatment of iGVHD and
the prospects for regulatory filings for orBec(R). Where possible, DOR
BioPharma has tried to identify these forward-looking statements by
using words such as "anticipates," "believes," "intends," or similar
expressions. These statements are subject to a number of risks,
uncertainties and other factors that could cause actual events or
results in future periods to differ materially from what is expressed
in, or implied by, these statements. DOR BioPharma cannot assure you
that it will be able to successfully develop or commercialize products
based on its technology, including orBec(R), particularly in light of
the significant uncertainty inherent in developing vaccines against
bioterror threats, manufacturing and conducting preclinical and
clinical trials of vaccines, and obtaining regulatory approvals, that
its technologies will prove to be safe and effective, that its cash
expenditures will not exceed projected levels, that it will be able to
obtain future financing or funds when needed, that product development
and commercialization efforts will not be reduced or discontinued due
to difficulties or delays in clinical trials or due to lack of
progress or positive results from research and development efforts,
that it will be able to successfully obtain any further grants and
awards, maintain its existing grants which are subject to performance,
enter into any biodefense procurement contracts with the U.S.
Government or other countries, that it will be able to patent,
register or protect its technology from challenge and products from
competition or maintain or expand its license agreements with its
current licensors, or that its business strategy will be successful.
Important factors which may affect the future use of orBec(R) for
iGVHD include the risks that: because orBec(R) did not achieve
statistical significance in its primary endpoint in the pivotal Phase
III clinical study (i.e. a p-value of less than or equal to 0.05), the
FDA may not consider orBec(R) approvable based upon existing studies,
orBec(R) may not show therapeutic effect or an acceptable safety
profile in future clinical trials, if required, or could take a
significantly longer time to gain regulatory approval than DOR
BioPharma expects or may never gain approval; DOR BioPharma is
dependent on the expertise, effort, priorities and contractual
obligations of third parties in the clinical trials, manufacturing,
marketing, sales and distribution of its products; or orBec(R) may not
gain market acceptance; and others may develop technologies or
products superior to orBec(R). DOR BioPharma presently is involved in
financing negotiations which could result in the issuance of a
significant number of shares of its equity securities, thereby
diluting the equity interests of present stockholders. These and other
factors are described from time to time in filings with the Securities
and Exchange Commission, including, but not limited to, DOR
BioPharma's most recent reports on Form 10-QSB and Form 10-KSB. DOR
BioPharma assumes no obligation to update or revise any
forward-looking statements as a result of new information, future
events, and changes in circumstances or for any other reason.