NEW YORK, NEW YORK, June 14, 2006 - Danube Pharmaceuticals, Inc., a privately held drug development company, completed a private placement of Series A Convertible Preferred Stock with institutional and other accredited investors resulting in gross proceeds in excess of $10 million. Riverbank Capital Securities, Inc. acted as placement agent in connection with the sale of the securities.

The proceeds from the financing will be used to fund further development of the company's lead compound, DNB-001, a novel oral therapy for the treatment of glaucoma. Danube plans to initiate a multi-center Phase II clinical trial of DNB-001 in patients with elevated intra-ocular pressure (IOP) in the United Kingdom in late 2006. Danube believes that DNB-001 is a first-in-class oral therapy with dual mechanism of action, which is initially being developed for the treatment of glaucoma. In preclinical animal models, DNB-001 has demonstrated potent IOP- lowering effects as well as neuroprotective effects on the optic nerve. Moreover, in a 79-patient Phase I study in the United Kingdom, DNB-001 was well tolerated at all dose levels, with side effects being generally mild and comparable to those observed in the placebo group.

Glaucoma is a degenerative eye disease characterized by progressive damage to the optic nerve and frequently associated with elevated IOP. A leading ause of blindness worldwide, glaucoma affects over 3 million people in the United States alone. While marketed therapies lower IOP and reduce risk of disease progression, none possess a mechanism for direct neuroprotection. Additionally, all currently marketed oral therapies for glaucoma possess onsiderable side-effects which limit their clinical use.

"We are very excited to have completed this financing," said Peter M. Kash, Chairman of the Board of Directors of Danube. "The proceeds should be sufficient to fund our operations through the completion of our Phase II clinical trial in the U.K., and also provide us with the flexibility to simultaneously build out our pipeline. We also believe that, if successfully developed, DNB-001 has the potential to command a significant share of the glaucoma market due to its safety profile, oral availability and dual mechanism of action."

About Danube Pharmaceuticals, Inc.

Danube Pharmaceuticals, Inc. is a privately held biopharmaceutical company created by Two River Group Holdings, LLC. Danube acquires the rights to commercially develop therapeutic technologies to address unmet medical needs. Danube is currently developing an oral treatment for glaucoma, which is expected to enter a Phase II clinical trial in the United Kingdom in late 2006. The company is also developing a topical formulation of DNB-001 as a follow-on product. The company's mission is to efficiently move its technologies through the various stages of clinical development in order to meet thee need for safe and effective treatments of human illnesses.

Contact:

David M. Tanen
Interim President
Danube Pharmaceuticals, Inc.
(212) 871-7900
info@danubepharma.com

This news release contains forward-looking statements that involve risks and uncertainties that could cause our actual results and experiences to differ materially from anticipated results and expectations expressed in such forward-looking statement. These statements are based on our current beliefs and expectations as to such future outcomes. Drug discovery and development involve a high degree of risk. Factors that might cause such a material difference include, among others, uncertainties related to the ability to attract and retain partners for our technologies, the identification of lead compounds, the successful preclinical development thereof, the completion of clinical trials, the FDA review process and other governmental regulation, our pharmaceutical collaborator's ability to successfully develop and commercialize drug candidates, competition from other pharmaceutical companies, and product pricing and third party reimbursement. We undertake no obligation to update any forward-looking statement contained in this press release, except as required by law.