Aethlon Medical (AEMD) Note: Since September 30th, 2011 / Thank You Shareholders

     Aethlon Medical (AEMD) Note: Since September 30th, 2011 / Thank You
                                 Shareholders

PR Newswire

SAN DIEGO, Feb. 5, 2013

SAN DIEGO, Feb. 5, 2013 /PRNewswire/ --Aethlon Medical, Inc. (OTCQB: AEMD),
today released the following note authored by its Chairman and CEO, Jim Joyce.

In our quest to innovate life-saving therapeutics, we have persevered through
untold challenges to create a single medical device that offers to optimize
the benefit of cancer and infectious disease therapies.  As our endeavors
transitioned beyond R&D, we thought we were cognizant of the entire alphabet
soup of healthcare and financial regulatory agencies we would need to navigate
to bring our technology to market. 

However, on September 30th 2011, we were blindsided by an action never
anticipated. The Depository Trust Company (DTC) eliminated the electronic
transfer of our securities, otherwise known as a "DTC Chill." As a result,
broker-dealers across America began to restrict or prohibit trading in Aethlon
Medical shares, which in turn reduced liquidity and inhibited the true
sentiment for our company to be accurately reflected by the public markets. A
recently published viewpoint of a securities law firm provides a
moresuccinctperspective on a DTC Chill: 

"The Depository Trust Company is the only stock depository in the U.S. When
DTC provides services asthe depository for an issuer's securities, its
securitiescan trade electronically. Without DTC eligibility, it is almost
impossible for an issuerto establish an active market inits securities."

As the result of protracted legal effort, DTC has agreed to lift the
restriction on the electronic transfer of our securities, which we reported in
an SEC filing on January 7th. In a related event, I am pleased to inform
shareholders and other interested parties that our transfer agent has notified
us that the CUSIP underlying our shares is now unlocked to again allow for our
shares to be electronically traded on the DTC system.Thus, signaling the end
of a lengthy and disheartening challenge faced by our organization.

While we cannot measure the full impact the DTC Chill, I ask you to consider
some of our milestone achievements since September 30th, 2011. Milestone
achievements that many biotechnology or medical device organizations would
envy.

On the day (yes, the exact same day) the DTC Chill went into effect, we
transitioned from a development-stage to revenue-stage organization as the
result ofa $6.8 Department of Defense (DOD) contract award from the Defense
Advanced Research Projects Agency (DARPA). Since contract initiation, we have
generated in excess of $2 million in revenues and have advanced the
development of a device and blood processing system to combat sepsis.

Related to our DARPA program, we teamed with two larger industry organizations
to respond to a $25 million systems integrator contract opportunity. The
recipient of this contract has not yet been announced by DARPA.

We reported our first Hepatitis-C (HCV) efficacy data related to the use of
our Hemopurifier® as an adjunct to optimize the benefit of standard of care
drug therapy.The results exceeded expectations as a three-treatment
Hemopurifier® protocol was demonstrated to reduceviral load to undetectable
levels in as little as seven days. Since September 30^th, 2011, organizations
with clinical stage adjunct therapies have been acquired for a much as $11
Billion.

Based on prior discussions with the U.S. Food and Drug Administration (FDA),
we established a protocol to elute the post-treatment biological fluid from
the Hemopurifier® as a means to quantify HCV capture.The result established
an unprecedented data point validating the capture of up to 300 billion copies
of HCV during a single treatment. I plan to detail the relevance of this
datapoint in a future CEO note.

As the result of our HCV treatment outcomes, the Medanta Medicity Institute is
now offering Hemopurifier® therapy on a compassionate-use basis to
HCV-infected individuals.

We submitted an Investigational Device Exemption (IDE) to the FDA to request
permission to initiate a clinical feasibility study HCV infected individuals
who would be enrolled to receive Hemopurifier® therapy. We have since
received comments and study design considerations back from FDA and are
preparing a response that we hope will lead to the initiation of U.S. clinical
studies.

Since September 30^th, 2011, we advanced studies that validated the ability of
our Hemopurifier® to capture exosomes underlying different forms of cancer.
Tumor-secreted exosomes have been discovered to play a vital role in cancer
progression and it has recently become clear that a successful war against
cancer will need to address these particles. Our Hemopurifier® is the first
therapeutic candidate to address tumor-secreted exosomes.

We expanded our intellectual property portfolio of pending and issued
patents.As the result of our early exosome research, we were recently issued
a patent that protects our cancer treatment strategy in the United States for
the next two decades.

We disclosed that researchers at the Morehouse School of Medicine discovered
that the Hemopurifier® captures HIV exosomes, which transport NEF protein to
assist HIV in maintaining the suppression of the immune system, even when
antiviral drugs are able to achieve undetectable viral load in treated
patients. 

We began shipping our exosome assay (ELLSA), which we originally created to
support our own research, to researchers who are utilizing its capabilities to
create new diagnostic tools that have the potential to identify a variety of
disease conditions in blood and urine.

We received the support of highly regarded thought leaders from the
extracorporeal, sepsis, and cancer field who agreed to join our science
advisory board.

We believe that these selected achievements portray a company that is making
significant progress despite the challenges of being a small public company
that was saddled witha DTC Chill since September 30^th, 2011.

In closing, I am forever grateful to those shareholders that have loyally
supported our endeavors even in the darkest moments.Your belief validates
many sacrifices and inspires the strength to continue waging every fight
necessary to ensure our innovation has the opportunity to save lives.

About Aethlon Medical

Aethlon Medical creates innovative medical devices that address unmet medical
needs in cancer, infectious disease, and other life-threatening conditions.
Our Aethlon ADAPT™ System is a revenue-stage technology platform that provides
the basis for a new class of devices the rapid, yet selective removal of
disease promoting particles from the entire circulatory system. At present,
The Aethlon ADAPT™ product pipeline includes the Aethlon Hemopurifier® to
address infectious disease and cancer, and a medical device being developed
under a 5-year contract with Defense Advanced Research Projects Agency (DARPA)
to reduce the incidence of sepsis in combat-injured soldiers. For more
information, please visit www.aethlonmedical.com.

About The Aethlon Hemopurifier®

The Aethlon Hemopurifier® is a first-in-class medical device that selectively
targets the rapid clearance of infectious viral pathogens and
immunosuppressive proteins from the entire circulatory system. In the
treatment of Hepatitis C virus (HCV), human studies have demonstrated that
Hemopurifier® therapy may improve immediate, rapid and sustained virologic
response rates when administered in the first few days of standard-of-care
drug therapy. In addition to accelerating viral load depletion,
post-treatment analysis of the Hemopurifier® has documented the capture of up
to 300 billion HCV copies of HCV during a single six-hour treatment. Access
to Hemopurifier® therapy is available on a compassionate-use basis through the
Medanta Medicity Institute (Medicity), a leading center for medical tourism in
India. The Medicity is offering treatment access to infected individuals who
previously failed or subsequently relapsed standard-of-care drug regimens.
The Hemopurifier® is also being offered as a salvage therapy to infected
individuals who suffer a viral breakthrough during standard-of-care therapy.
U.S. studies of the Hemopurifier® are currently pending approval of an IDE
submitted to FDA. 

The Aethlon Hemopurifier® and Cancer

In addition to the opportunity to address a broad-spectrum of infectious viral
pathogens, the Hemopurifier® has been discovered to capture tumor-derived
exosomes underlying several forms of cancer. Tumor-derived exosomes have
recently emerged to be a vital therapeutic target in cancer care. These
microvesicular particles suppress the immune response in cancer patients
through apoptosis of immune cells and their quantity in circulation correlates
directly with disease progression. Beyond possessing immunosuppressive
properties, tumor-derived exosomes facilitate tumor growth, metastasis, and
the development of drug resistance. By addressing this unmet medical need,
the Hemopurifier® is positioned as an adjunct to improve established cancer
treatment regimens.

Certain statements herein may be forward-looking and involve risks and
uncertainties. Such forward-looking statements involve assumptions, known and
unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of Aethlon Medical, Inc. to be materially
different from any future results, performance, or achievements expressed or
implied by the forward-looking statements. Such potential risks and
uncertainties include, without limitation, that the FDA will not approve the
initiation of the Company's clinical programs or provide market clearance of
the company's products, future human studies whether revenue or non-revenue
generating from either compassionate use or non-compassionate use of the
Aethlon ADAPT™ system or the Aethlon Hemopurifier® as an adjunct therapy to
improve patient responsiveness to established cancer or hepatitis C therapies
or sepsis therapies or as a standalone cancer or hepatitis C therapy or
standalone sepsis therapy, the Company's ability to raise capital when needed,
the Company's ability to complete the development of its planned products, the
Company's ability to manufacture its products either internally or through
outside companies and provide its services, the impact of government
regulations, patent protection on the Company's proprietary technology,
product liability exposure, uncertainty of market acceptance, competition,
technological change, and other risk factors. In such instances, actual
results could differ materially as a result of a variety of factors, including
the risks associated with the effect of changing economic conditions and other
risk factors detailed in the Company's Securities and Exchange Commission
filings. The Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information, future
events, or otherwise.

Contacts:

James A. Joyce
Chairman and CEO
858.459.7800 x301
jj@aethlonmedical.com

Jim Frakes
Chief Financial Officer
858.459.7800 x300
jfrakes@aethlonmedical.com

Marc Robins
877.276.2467
mr@aethlonmedical.com

SOURCE Aethlon Medical, Inc.

Website: http://www.aethlonmedical.com