AtheroGenics is a publicly traded, emerging pharmaceutical company focused on the discovery, development and commercialization of novel pharmaceutical products that address critical unmet needs in the treatment of chronic inflammatory diseases, including diabetes and atherosclerosis.

The Company’s lead compound, AGI-1067, is a novel orally available anti-oxidant with anti-inflammatory properties that was discovered by AtheroGenics scientists.

AtheroGenics is studying AGI-1067 in a Phase III clinical trial called ANDES (AGI-1067 as a Novel Anti-Diabetic Agent Evaluation Study) to assess the ability of AGI-1067 to control blood sugar levels in patients with diabetes. Patient enrollment in ANDES was completed in December 2007. A pre-planned interim analysis to evaluate the efficacy and safety of AGI-1067 after three months of dosing will be conducted in the second quarter of 2008. The Company expects to release final data on the full six months of dosing during the second half of 2008.

AtheroGenics was incorporated in Georgia in 1993 and is based in Alpharetta, Georgia. The Company currently has 70 employees, with a senior management team comprised of executives from leading pharmaceutical companies and academic institutions.

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V-Protectant® Technology

We have developed a proprietary drug discovery technology platform called vascular protectant, or v-protectant®, technology for treating diseases of chronic inflammation. Inflammation normally protects the body from infection, injury and disease, but chronic inflammation often causes damage in a misdirected attempt at repair and healing.

Diseases of chronic inflammation that we are targeting include:

• Type 2 diabetes, which has reached epidemic proportions, accounts for up to 95% of all diabetes cases. Its prevalence has tripled in the last 30 years. Almost 21 million Americans have diabetes, although 6.2 million of those are undiagnosed. Cardiovascular disease is a major complication of diabetes – about 65% of people with diabetes die from heart disease and stroke.
• Atherosclerosis, including coronary artery disease, which affects nearly 14 million people in the United States and is the leading cause of death in the United States.
• Solid organ transplant rejection, which affects more than 200,000 people in the United States and is a major factor contributing to organ shortage.

V-Protectant® Backgrounder
Our v-protectants® are therapeutic small molecules that block a class of signals called oxidant signals. Oxidant signals lead to the production of selected inflammatory proteins including VCAM-1. These inflammatory proteins attract white blood cells, or leukocytes, to the site of chronic inflammation. Leukocytes destroy infective agents and promote healing but can also amplify chronic inflammation. Diseases marked by chronic inflammation are the therapeutic targets of several classes of currently available drugs. Some drugs are directed toward reduction of risk factors for the underlying disease, such as high blood cholesterol in atherosclerosis. Other drugs provide symptomatic relief. Among these drugs are anti-inflammatories and immunosuppressants that decrease chronic inflammation, but increase the risk of infection. None of these drugs treats the underlying cause of chronic inflammation. In contrast, we believe that our v-protectants® can suppress chronic inflammation by selectively inhibiting the expression of VCAM-1 in endothelial cells without undermining the body's ability to protect itself against infection.

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Business Strategy

Our objective is to become a leading pharmaceutical company focused on discovering, developing and commercializing novel drugs for the treatment of chronic inflammatory diseases. The key elements of our strategy include the following:

• Continue aggressive development program for AGI-1067. We intend to aggressively develop AGI-1067 for the treatment and prevention of diabetes and atherosclerosis.
• Extend our v-protectant® technology platform into additional therapeutic areas that address unmet medical needs. We believe that our v-protectants® have the potential for treating a wide variety of other chronic inflammatory diseases. These indications include chronic organ transplant rejection, rheumatoid arthritis, asthma and other diseases. We have completed two Phase I clinical trials with positive results for AGI-1096, a v-protectant® developed for the prevention of chronic organ transplant rejection.
• Expand our clinical product candidate portfolio. We intend to pursue the acquisition of rights to other product candidates and technologies that complement our existing product candidate lines or that enable us to capitalize on our scientific and clinical development expertise. We plan to expand our product candidate portfolio by in-licensing or acquiring product candidates, technologies or companies.
• Commercialize our products. We plan to collaborate with large pharmaceutical companies to commercialize products that we develop to target patient or physician populations in broad markets.