PLEASANTON, CA–( EMWNews – April 4, 2008) – Lipid Sciences, Inc. (NASDAQ: LIPD), in

compliance with Nasdaq Marketplace Rule 4350(b)(1)(B), which requires

separate disclosure of receipt of an audit opinion that contains a going

concern qualification, disclosed that its Annual Report on Form 10-K (“Form

10-K”), filed with the Securities and Exchange Commission (SEC) on March

28, 2008, contained a going concern qualification from the Company’s

independent registered public accounting firm, Deloitte & Touche LLP.

This announcement does not represent any change or amendment to the

Company’s financial statements or to its Form 10-K for the fiscal year

ended December 31, 2007.

At December 31, 2007 the Company had $6.5 million in cash and cash

equivalents. The Company anticipates that sufficient capital is available

to fund its operations, including current development projects, through the

first half of 2008. With the recent announcements of the achievement of

significant and positive scientific milestones related to Lipid Sciences’

HDL Mimetic Peptide and HDL Selective Delipidation development programs,

the Company is now in a position to implement a strategic financing plan to

fund its ongoing operations and development projects. The foregoing should

be read in conjunction with the Risk Factors with respect to capital

requirements set forth in the Company’s Form 10-K.

Lipid Sciences, Inc. is a development-stage biotechnology company engaged

in the research and development of products and processes intended to treat

major medical indications, in which lipids, or fat components, play a key

role. The Company’s HDL Therapy platform (HDL Mimetic Peptides and HDL

Selective Delipidation) aims to develop treatments to reverse

atherosclerosis, a systemic disease of the blood vessels caused by the

build-up of cholesterol-filled plaques in the vascular system and, most

critically, in the coronary arteries. Regression of such plaques may have

a major impact on reducing the risk of acute coronary events. The

Company’s Viral Immunotherapy platform focuses on the removal of the lipid

coatings from lipid-enveloped viruses and other lipid-containing infectious

agents by applying Lipid Sciences’ proprietary delipidation technologies.

The Company believes that removing the virus’ protective lipid coating

enhances the processing and presentation of viral proteins to stimulate the

body’s immune system to effectively fight the disease. Conditions that

could potentially be impacted by these technologies include HIV, Hepatitis

B, and Hepatitis C. In addition, Lipid Sciences believes that this Viral

Immunotherapy platform also has applicability to a wide range of viruses

impacting animal health — a diverse market with diseases affecting both

food and companion animals.

Forward-Looking Statements: This release contains forward-looking

statements concerning plans, objectives, goals, strategies, study results,

anticipations, expectations, future events or performance as well as all

other statements that are not statements of historical fact. The

forward-looking statements contained in this release reflect our current

beliefs and expectations on the date of this release. Actual results,

performance or outcomes may differ materially from what is expressed in the

forward-looking statements. Readers should refer to the documents filed by

us with the SEC, specifically the most recent reports on Form 10-K and Form

10-Q which identify important risk factors that could cause actual results

to differ from those contained in the forward-looking statements. In

addition to those risk factors, other factors that could cause actual

results to differ materially include the following: our inability to

obtain adequate funds; our technologies not proving to be safe or

effective; our inability to obtain regulatory approval of our technologies,

which are only in the clinical development stage; delay or failure to

complete clinical studies; our dependence on our license agreement with

Aruba International B.V.; our reliance on collaborations with strategic

partners and consultants; our reliance on key suppliers to provide the

material necessary to conduct successful pre-clinical and clinical studies;

competition in our industry, including the development of new products by

others that may provide alternative or better therapies; failure to secure

and enforce our intellectual property rights; risks associated with use of

biological and hazardous materials; acceptance of our potential products by

healthcare providers and patients; and our dependence on key personnel.

This release should be read in conjunction with the consolidated financial

statements and notes thereto included in our most recent reports on Form

10-K and Form 10-Q. Copies are available through the SEC’s Electronic Data

Gathering Analysis and Retrieval system (EDGAR) at www.sec.gov. Lipid

Sciences assumes no obligation to update the forward-looking statements

included in this document.

Press releases for Lipid Sciences, Inc. are available on our website:

www.lipidsciences.com. To receive the Company’s press releases via email,

please contact: [email protected].