Nastech Pharmaceutical Company Inc. (Nasdaq: NSTK) announced today the initiation of a Phase I pharmacokinetic study designed to evaluate the safety, bioavailability and glucose response of Nastech's proprietary, rapid acting intranasal insulin formulation. The study will compare Nastech's intranasal formulation to an approved injectable product and to a recently approved new dosage form, Exubera(R) (insulin human [rDNA origin]) Inhalation Powder. Nastech's insulin nasal spray could provide patients with a convenient, needle-free alternative while avoiding possible pulmonary side effects or long term toxicity associated with the inhalation of insulin.

This study is the first of several studies to select the formulation and determine the optimal insulin nasal spray dose that will be used to conduct subsequent safety and efficacy studies. This is designed as a dose ranging study in which subjects will receive a single subcutaneous injection of insulin, a single administration of Exubera(R), and several different Nastech insulin nasal spray doses on separate days.

Pharmacokinetic and pharmacodynamic parameters will be evaluated as well as tolerability of the insulin nasal spray doses.

"Nastech's initiation of human clinical testing marks a major milestone in our insulin nasal spray development program," stated Steven C. Quay, M.D., Ph.D., Chairman, President and CEO of Nastech. "This product candidate utilizes Nastech's proprietary drug delivery technologies, which have demonstrated the ability to safely and effectively deliver large molecules through a non-invasive, intranasal route of administration.

Nastech's insulin nasal spray could offer a patient- and physician-preferred form of administration that avoids an injection and the potential safety concerns of pulmonary delivery. The convenience and privacy afforded by a device the size of a pack of gum also should promote patient compliance, which could in turn translate into better diabetes control and outcomes. We look forward to rapidly advancing this program and finding an appropriate marketing partner."

About Diabetes and Insulin

In the United States, approximately 21 million people have diabetes and 1.5 million new patients are diagnosed every year, according to the American Diabetes Association. Type 2 diabetes accounts for an estimated 90 to 95 percent of all cases. Complications can include cardiovascular disease, kidney disease, blindness and diseases of the central nervous system. Injectable insulin has been used to treat diabetes since the early 1920s and continues to be the definitive treatment for diabetes worldwide.

Branded insulin sales in the United States were approximately $1 billion in the second quarter of 2006. The total direct and indirect economic cost related to diabetes in 2002 was estimated to be $132 billion annually in the United States.

About Nastech

Nastech is a pharmaceutical company developing innovative products based on proprietary molecular biology-based drug delivery technologies. Nastech and its collaboration partners are developing products for multiple therapeutic areas including osteoporosis, diabetes, obesity, respiratory disease and inflammatory conditions. Additional information about Nastech is available at http://www.nastech.com.

Nastech Forward Looking Statements

Statements made in this press release may be forward-looking statements within the meaning of Federal Securities laws that are subject to certain risks and uncertainties and involve factors that may cause actual results to differ materially from those projected or suggested. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to: (i) the ability of Nastech to obtain additional funding; (ii) the ability of Nastech to attract and/or maintain manufacturing, research, development and commercialization partners; (iii) Nastech's and/or a partner's ability to successfully complete product research and development, including preclinical and clinical studies and commercialization; (iv) Nastech's and/or a partner's ability to obtain required governmental approvals; and (v) Nastech's and/or a partner's ability to develop and commercialize products that can compete favorably with those of competitors. Additional factors that could cause actual results to differ materially from those projected or suggested in any forward-looking statements are contained in Nastech's most recent periodic reports on Form 10-K and Form 10-Q that are filed with the Securities and Exchange Commission. Nastech assumes no obligation to update and supplement forward-looking statements because of subsequent events.

Nastech Pharmaceutical Company Inc.
http://www.nastech.com