Medinox Completes $13.8 Million Private Offering

San Diego, California (January 7, 2002) Medinox, Inc. today announced the completion of a $13.8 million private offering of preferred stock, which brings the company's total equity financing since its inception in 1995 to $29.2 million. The investors in this round included an international group of venture capital funds, led by China Development Industrial Bank in Taiwan. Other major investors in the offering were Industrial Bank of Taiwan, Chiao Tung Bank Co., Ltd., CIH Investment Capital Limited, Core Pacific Venture Capital, Hua Hsia Investment Holding Co., IBT Venture Co., Taiwan Biotech Co., Ltd. and Prudence Venture Investment Corporation.

The proceeds of this offering will be used to fund the ongoing Phase I/IIa septic shock clinical trial of NOX-100, Medinox's nitric oxide (NO)-blocking agent, at Stanford University, the University of Pittsburgh Medical Center and the University of Rochester in New York. Several additional centers for this study are now being recruited. The trial was initiated in July 2001 and will be completed within one year. This trial will evaluate the efficacy of NOX-100 in restoring blood pressure and improving organ function of critically ill sepsis patients. In pre-clinical studies performed by Medinox's scientists and its collaborators, NOX-100 significantly improved these measures in models of septic shock.

The proceeds will also provide working capital to initiate two other clinical trials in Europe in 2002: A Phase I/IIa clinical trial of NOX-700, an oral NO-blocker for the treatment of Type 2 diabetes, and a Phase I clinical trial of MX-1094, a new anti-inflammatory drug for the treatment of arthritis.

"Completing this round of financing is a significant milestone for the company," said Monte Lai, Ph.D., Medinox's President & CEO, "This additional capital will allow us to advance multiple programs into the clinic and continue to build shareholder value. Our ability to complete this round of financing, despite the difficult market conditions in 2001, is recognition of the potential for our technology to yield a number of promising drugs."

About Medinox, Inc. Medinox is the leader in NO-blocking therapeutics and is developing a broad technology platform to address a wide variety of unmet medical needs including sepsis, diabetes and acute respiratory distress syndrome (ARDS), among many others. In addition to its NO blocker technology, Medinox is also developing new and safer NSAIDs, and new therapeutic agents for sickle cell anemia.

For information on Medinox, please visit the company's website at www.medinox.com.