Nastech Pharmaceutical Company Inc. Raises $7.93 Million in Registered Direct Offering

  
    
  
  
    
      Nastech Pharmaceutical Company Inc. (Nasdaq: NSTK) announced today that 
      it has entered into definitive agreements with new and existing 
      investors to raise gross proceeds of $7,932,500 though a registered 
      direct offering. Under terms of the agreement, the Company will sell 
      4,585,260 shares of its common stock at $1.73 per share. As part of the 
      transaction, the investors also will receive warrants, with a 7-year 
      term, to purchase 4,585,260 shares of common stock at an exercise price 
      of $2.38 per share. The warrants will be exercisable beginning October 
      25, 2008.
    
    
      In addition, the investors have the right to purchase up to 1,375,578 
      shares of common stock at a price of $2.17 per share during the 90-day 
      period beginning October 25, 2008. If fully exercised, total gross 
      proceeds would be $2,985,005.
    
    
      The transaction is expected to close today, Friday, April 25, 2008, 
      subject to customary closing conditions. The Company plans to use the 
      proceeds of this transaction for working capital.
    
    
      Maxim Group, LLC served as the placement agent for the offering.
    
    
      A shelf registration statement relating to the common stock and warrants 
      to be issued in the offering has been filed with the Securities and 
      Exchange Commission and has become effective. A prospectus supplement 
      related to the offering will be filed with the Securities and Exchange 
      Commission. Copies of the prospectus supplement and accompanying base 
      prospectus may be obtained at the SEC's website at http://www.sec.gov, 
      or via written request to Nastech Pharmaceutical Company Inc., 3830 
      Monte Villa Parkway, Bothell, WA, 98021. Attention: Investor Relations.
    
    
      About Nastech
    
    
      Nastech is a clinical stage biopharmaceutical company focusing on the 
      development and commercialization of innovative therapeutic products 
      based on our proprietary molecular biology-based drug delivery 
      technologies and our proprietary ribonucleic acid interference 
      technology. Nastech and its collaboration partners are developing 
      products for multiple therapeutic areas including diabetes, obesity, 
      osteoporosis, autism, respiratory diseases and inflammatory conditions. 
      Additional information about Nastech is available at http://www.nastech.com.
    
    
      Nastech Forward Looking Statements
    
    
      Statements made in this press release may be forward-looking statements 
      within the meaning of Federal Securities laws that are subject to 
      certain risks and uncertainties and involve factors that may cause 
      actual results to differ materially from those projected or suggested. 
      Factors that could cause actual results to differ materially from those 
      in forward-looking statements include, but are not limited to: (i) the 
      ability of Nastech or a subsidiary to obtain additional funding; (ii) 
      the ability of Nastech or a subsidiary to attract and/or maintain 
      manufacturing, research, development and commercialization partners; 
      (iii) the ability of Nastech, a subsidiary and/or a partner to 
      successfully complete product research and development, including 
      preclinical and clinical studies and commercialization; (iv) the ability 
      of Nastech, a subsidiary and/or a partner to obtain required 
      governmental approvals; and (v) the ability of Nastech, a subsidiary 
      and/or a partner to develop and commercialize products that can compete 
      favorably with those of competitors. Additional factors that could cause 
      actual results to differ materially from those projected or suggested in 
      any forward-looking statements are contained in Nastech's most recent 
      periodic reports on Form 10-K and Form 10-Q that are filed with the 
      Securities and Exchange Commission. Nastech assumes no obligation to 
      update and supplement forward-looking statements because of subsequent 
      events.