UPDATE: BioSante Exchanges $5 Million Aggregate Principal Amount of Convertible Senior Notes for 6.7 Million Shares of Common Stock

BioSante Pharmaceuticals, Inc.

, announced today that the company has entered into a privately-negotiated securities exchange agreement with a holder of BioSante's 3.125% convertible senior notes due May 1, 2013. Pursuant to the terms of the agreement, BioSante issued 6,723,173 shares of its common stock to the note holder in exchange for an aggregate of $5.0 million principal amount of notes, including accrued and unpaid interest. Following such exchange, an aggregate of $15.8 million principal amount of the notes will remain outstanding. “This transaction will extend BioSante's cash runway and is important as we continue to analyze the best path forward for LibiGel®, to investigate alternative strategies and to explore new product development projects through in-licensing and mergers and acquisitions,” stated Phillip Donenberg, BioSante's senior vice president of finance and chief financial officer. “We appreciate the flexibility and continued support of our note holder as we rebuild BioSante to maximize value for our stockholders.”