A Phase I safety and tolerability clinical trial for QuitPak® has been completed by Dr. Richard Olmstead at the Greater Los Angeles Veterans Affairs Hospital System, an affiliate of UCLA. The trial demonstrated that the product was well tolerated and showed encouraging clinical activity. Development is underway on a sustained-release formulation for QuitPak® that will be used by the Company to conduct its Pharmacokinetics and Phase IIb clinical trials. The Company was recently awarded an SBIR grant from the NIDA in the amount of $337,000 to fund the Pharmacokinetic evaluation of its QuitPak® formulation. The Phase IIb trial, designed to demonstrate the efficacy of QuitPak® versus the efficacy of its individual components alone, will begin in 2008. Upon the completion of this milestone, Cary Pharma will license QuitPak® to a strategic partner to complete its clinical development through Phase III clinical trials, obtain FDA approval and commercialize the product.