Medical Discoveries, Inc. has signed a "Research Support Agreement" with the Dana-Farber Cancer Institute, a major Teaching Affiliate of Harvard Medical School, and a National Institutes of Health- approved AIDS Research Laboratory, to confirm and extend the anti-HIV activity of the Company's Novel Drug: MDI-P.

Preliminary studies conducted at the NIH-approved AIDS Research Laboratory conducted for Medical Discoveries, Inc. have demonstrated that MDI-P treatment will decrease the production of HIV-1.

The Research Plan will further investigate the mechanism by which MDI-P inactivates the virus, and will define its cellular and viral specificity.

Importantly, Dana-Farber Cancer Institute will be testing the activity of "MDI-P" against resistant strains of HIV and against fresh samples of HIV taken from the patient. All research under this agreement will be developed and conducted under the direction and supervision of Robert Finberg, M.D., Chief of Infectious Disease at the Dana-Farber Cancer Institute, and Professor of Medicine, Harvard Medical School, as Principal Investigator.

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William J. Novick, Ph.D., Vice President and Chief Technical Officer of Medical Discoveries, Inc. stated, "we are extremely pleased to enter into this Research Support Agreement with the Dana-Farber Cancer Institute and Dr. Finberg.

The importance of MDI-P is highlighted by the fact that it works on mechanisms which are different from those targeted by the currently approved anti-retroviral agents. We can categorically say that this drug is not an enzyme inhibitor, I feel very strongly that the potential of this drug against the resistant strains of HIV is every bit as good as against the normal wild strains," he added.

The discovery and validation testing resulting from this Agreement is intended to support the filing by Medical Discoveries, Inc., of an Investigational New Drug Application with the FDA to initiate Phase I/II Clinical Trial testing in humans.