Market Overview

Pivotal Trial of ALung's Artificial Lung Technology Reaches Record Enrollment

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The UK-based REST Trial of the Hemolung RAS is now the world's
largest trial of extracorporeal lung support.

ALung Technologies, Inc., the leading provider of low-flow
extracorporeal carbon dioxide removal (ECCO2R) technologies
for treating patients with acute respiratory failure, announced today
that over 250 patients have been enrolled in the UK-based REST Trial, a
landmark pivotal study of its Hemolung RAS in patients with acute
respiratory distress syndrome (ARDS). The REST Trial is now the largest
ever prospective clinical study of extracorporeal lung support. ALung's
Hemolung RAS, a minimally invasive artificial lung device which removes
carbon dioxide independently of the lungs, is the exclusive ECCO2R
technology being used in the trial.

The global incidence of acute respiratory failure exceeds 1 million
cases per year. Many patients with respiratory failure require the
assistance of a ventilator to provide life sustaining oxygenation and
carbon dioxide removal. Unfortunately, the injured lung is susceptible
to additional damage by the positive pressure exerted by the ventilator,
leading to additional injury, complications, and increased mortality.

"In patients with ARDS, it is crucial that ventilator settings be
reduced so that the lungs can rest and heal," noted Dr. Steve Conrad,
Medical Director at ALung. "The REST Trial is important because it will
provide definitive evidence as to the ability of extracorporeal carbon
dioxide removal to facilitate potentially safer mechanical ventilation
in these critically ill patients."

The UK National Institute for Health Research (NIHR) funded the
1120-patient study entitled "pRotective vEntilation with
veno-venouS lung assisT in respiratory failure - The REST Trial" with
£2.1 million. The research is jointly led by Queen's University and
Belfast Health and Social Services Trust under the direction of
investigators Professor Danny McAuley and Dr. James McNamee of the
Centre for Experimental Medicine at Queen's University Belfast. ALung is
providing Hemolung systems and treatment kits to more than 40 hospitals
participating in the study.

"We are very excited to see the REST Trial reach this important
enrollment milestone," said Peter DeComo, Chairman and CEO of ALung.
"ALung is committed to generating high-quality clinical evidence for
ECCO2R, and I would like to thank the trial leadership team for all
their hard work and dedication to this effort."

The Hemolung RAS received European marketing clearance (CE Mark) in 2013
as the world's first fully integrated Respiratory Dialysis® system. In
addition to the REST Trial, ALung is conducting the US-based VENT-AVOID
Trial, a pivotal trial of the Hemolung RAS in patients with severe acute
exacerbations of chronic obstructive pulmonary disease. ALung is the
only company pursuing two major pivotal trials to validate the safety
and efficacy of extracorporeal carbon dioxide removal therapy.

More information about the REST Trial

UK
National Institute for Health Research (NIHR) – REST Trial Project
Website

This project ‘REST' was funded by the NIHR HTA programme (Project
Number: 13/143/02)

About ALung Technologies

ALung Technologies, Inc. is a privately-held Pittsburgh-based developer
and manufacturer of innovative lung assist devices. Founded in 1997 as a
spin-out of the University of Pittsburgh, ALung has developed the
Hemolung RAS as a dialysis-like alternative or supplement to mechanical
ventilation. ALung is backed by Philips, UPMC Enterprises, Abiomed, The
Accelerator Fund, Allos Ventures, Birchmere Ventures, Blue Tree
Ventures, Eagle Ventures, Riverfront Ventures, West Capital Advisors,
and other individual investors.

For more information about ALung and the Hemolung RAS, visit www.alung.com.

The Hemolung RAS is an Investigational Device and limited by United
States law to investigational use.

This press release may contain forward-looking statements, which, if
not based on historical facts, involve current assumptions and forecasts
as well as risks and uncertainties. Our actual results may differ
materially from the results or events stated in the forward-looking
statements, including, but not limited to, certain events not within the
Company's control. Events that could cause results to differ include
failure to meet ongoing developmental and manufacturing timelines,
changing GMP requirements, the need for additional capital requirements,
risks associated with regulatory approval processes, adverse changes to
reimbursement for the Company's products/services, and delays with
respect to market acceptance of new products/services and technologies.
Other risks may be detailed from time to time, but the Company does not
attempt to revise or update its forward-looking statements even if
future experience or changes make it evident that any projected events
or results expressed or implied therein will not be realized.

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