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Viral Genetics Settles Litigation and Reacquires African Rights for HIV/AIDS Products
Date:1/28/2011

al to the volume-weighted average closing price of the shares for the 20 trading days ending the day prior to each installment due date, not to exceed $0.15. If the Company's common shares trade at or above $0.20, however, the option to receive payment in shares or cash is at T&T's discretion. The Company may also prepay all or any part of the Debenture in cash or stock at any time without penalty, subject to certain terms and conditions. For additional details of the Debenture and Settlement, please see the Interim Financial Report filed with www.otcmarkets.com and the Company's periodic financial reports.

"Our HIV/AIDS technology and intellectual property portfolio have grown considerably in these last five years. We are now free to pursue possible partnerships and joint ventures at a much higher level that better reflect the value of the work," said Monica Ord, Senior Vice President, Viral Genetics. "Our relationships in Africa are more substantial than ever before and this settlement allows us to resume work in a country that desperately needs an effective treatment for AIDS. We are excited to move forward!"

About Viral Genetics, Inc.

San Marino, California-based Viral Genetics discovers and develops drug therapies. Founded in 1994, the biotech company is researching treatments for HIV/AIDS, Lyme Disease, Strep, Staph and drug resistant tumors. A majority-owned subsidiary called VG Energy is dedicated to exploring biofuel and agricultural applications for one of the technologies in its licensed portfolio. Online at www.viralgenetics.com.

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This news release contains forward-looking statements that involve risks and uncertainties associated with financial projections, budgets, milestone timelines, clinical development, regulatory approvals, and other risks described by V
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