Press Room

UNIDYM ANNOUNCES ESTABLISHMENT OF TECHNICAL ADVISORY BOARD

Internationally Recognized Leaders Will Counsel Top Nanotechnology Company as it Furthers its Technology Platform and Pursues Joint Development and Partnership Agreements

Menlo Park, CA, July 2, 2007

Unidym, the nanotechnology company that develops high-performance, cost-effective products for the electronics industry, and majority-owned subsidiary of Arrowhead Research Corporation (NASDAQ:ARWR), today announced it has established a Technical Advisory Board. The board, whose members are internationally recognized leaders of the scientific community with expertise ranging from nanoscale materials to printed electronics, will advise the company as it moves into its next phase of growth.

"We are extremely pleased to be able to attract scientists of such high caliber and repute," said Art Swift, CEO of Unidym. "We look forward to working together with the Board as we further our technology platform and explore new applications."

Members of the Technical Advisory Board at Unidym are:

• Professor P. M. Ajayan is the Henry Burlage Professor of Engineering at the Rensselaer Polytechnic Institute where he directs a multi-disciplinary team effort with the goal of developing carbon nanotubes (CNTs) as functional materials. He has worked in the field from its onset and his recent contributions include tunable-pore CNT membrane filters, chip cooling with integrated CNT architectures, CNT based Gecko- tape, controlled fabrication of CNT architectures, and CNT-polymer composites.


• Professor Mike McGehee of Stanford University is an internationally recognized expert on new materials for energy-saving applications. His current focus is on new generation solar cells. This year Professor McGehee has been selected as the Young Investigator of the Year by the Materials Research Society.


• George Grüner, Distinguished Professor at the University of California Los Angeles, has pioneered the field of CNT films for printed and transparent electronics, and is engaged in developing nanotechnology-based application opportunities. He also serves as the Chief Scientific Officer of Unidym.


• Professor Jin Jang of Kyung Hee University, Korea, is a leader in the field of display development. Among other achievements, he has developed active matrix displays on plastic substrates, and is also involved in developing low-temperature nanotube deposition processes for display applications. He is the author or co-author of over 500 technical publications.


• Professor Jie Liu of Duke University is involved in the production and exploration of CNTs. His research group has been working at the forefront of CNT synthesis and chemical functionalization, and has made significant contributions to the synthesis of various nanotube forms using chemical vapor deposition methods.


• John Rogers, Founder Professor of Engineering at the University of Illinois at Urbana-Champaign, is the worldˇ¦s leading expert on flexible macroelectronics and has pioneered the fabrication of novel CNT architectures and high performance electronic devices.

Unidym is actively pursuing joint development and partnerships with manufacturers of touch panels, solar cells, and flat panel displays. The company expects to execute key agreements and begin joint development work in the near future.

About Unidym, Inc.
Unidym, Inc. is developing low-cost, carbon-based materials, processes, and devices for the electronics industry. The Company's initial product is a thin, transparent film of carbon nanotubes that replaces the expensive, failure-prone materials currently employed by manufacturers of devices such as touch screens, flat panel displays, and solid state lighting. Unidym is also developing novel carbon nanotube-based transistors and conductive inks for the printable electronics industry to replace todayˇ¦s complex and capital intensive semiconductor manufacturing processes with inexpensive, solution-based printing processes. Unidym differentiates itself through its emphasis on low-cost materials and processes, in-house carbon nanotube production, aggressive partnership strategy, and significant intellectual property portfolio that includes foundational IP in both of its initial applications.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factorsand uncertainties, including the recent economic slowdown affecting technology companies, the future success of our scientific studies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. Our Annual Report on Form 10-K and 10-K/A, recent and forthcoming Quarterly Reports on Form 10-Q and 10-Q/A, recent Current Reports on Forms 8-K and 8-K/A, our Registration Statement on Form S-3, and other SEC filingsdiscuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.