Novelos Therapeutics, Inc. (OTCBB: NVLT - News), a biopharmaceutical company focused on the development of therapeutics to treat cancer and hepatitis, today announced that Novelos, in collaboration with the Medical University of South Carolina (MUSC), was awarded a $150,000 competitive grant by the National Institutes of Health (NIH) under Phase I of the Small Business Technology Transfer (STTR) program. This grant will support further scientific development of NOV-002, Novelos' lead compound in pivotal Phase 3 trial for non-small cell lung cancer under a Special Protocol Assessment (SPA) and Fast Track.

Kenneth D. Tew, Ph.D., D.Sc, is the principal investigator of the grant. Tew is chairman of Novelos' Scientific Advisory Board, professor and chair of the MUSC Department of Cell and Molecular Pharmacology & Experimental Therapeutics and John C. West Endowed Chair in Cancer Research.

"This STTR award enables Novelos to accelerate and broaden the scope of investigation around NOV-002's mechanism of action in relation to its unique therapeutic profile," said Christopher J. Pazoles, Ph.D., Vice President of R&D of Novelos. "This grant process is very competitive, and NIH's choice of Novelos to move this important work forward signals confidence in our technology platform and our expertise."

"NOV-002 is a novel drug capable of modifying redox-based cell processes and represents a valuable tool for linking such processes to clinical endpoints in oncology patients," said Dr. Tew. "The research supported by this initial STTR grant will focus on continued identification of the molecular targets of NOV-002 and the therapy-relevant consequences of their modulation."

STTR program seeks to increase the participation of small businesses in federal research and development and to facilitate private sector commercialization of technology developed through federal research and development. The unique feature of the STTR program is the requirement of small businesses to formally collaborate with a research institution in Phase I and Phase II. Phase I grants normally may not exceed $100,000 and Phase II grants may not exceed $750,000. For additional information visit: www.grants.nih.gov/grants/funding/sbirsttr_programs.htm

About Novelos Therapeutics, Inc.

Novelos Therapeutics, Inc. is a biopharmaceutical company commercializing oxidized glutathione-based compounds for the treatment of cancer and hepatitis. NOV-002, the lead compound currently in Phase 3 development for lung cancer under a SPA and Fast Track, acts together with chemotherapy as a chemoprotectant and an immunomodulator. NOV-002 is also in Phase 2 development for chemotherapy-resistant ovarian cancer and early-stage breast cancer, and is in addition being developed for acute radiation injury. NOV-205 acts as a hepatoprotective agent with immunomodulating and anti-inflammatory properties. NOV-205 is in Phase 1b development for chronic hepatitis C non-responders. Both compounds have completed clinical trials in humans and have been approved for use in the Russian Federation where they were originally developed. For additional information about Novelos please visit www.novelos.com

The project described was supported by Grant Number R41CA117259 from the National Cancer Institute. The content is solely the responsibility of the authors and does not necessarily represent the official views of the National Cancer Institute or the National Institutes of Health.

This news release contains forward-looking statements. Such statements are valid only as of today, and we disclaim any obligation to update this information. These statements are subject to known and unknown risks and uncertainties that may cause actual future experience and results to differ materially from the statements made. These statements are based on our current beliefs and expectations as to such future outcomes. Drug discovery and development involve a high degree of risk. Factors that might cause such a material difference include, among others, uncertainties related to the ability to attract and retain partners for our technologies, the identification of lead compounds, the successful preclinical development thereof, the completion of clinical trials, the FDA review process and other government regulation, our pharmaceutical collaborators' ability to successfully develop and commercialize drug candidates, competition from other pharmaceutical companies, product pricing and third-party reimbursement.