Mr. John Meekison reports

ICO THERAPEUTICS ANNOUNCES SECOND QUARTER 2014 FINANCIAL RESULTS

iCo Therapeutics Inc. today released financial results for the six months ended June 30, 2014. Amounts are presented under international financial reporting standards.

Second-quarter 2014 highlights:

• Announced top-line results related to the eight-month visual acuity primary end point for subjects enrolled in the phase 2 iDEAL study evaluating the efficacy and safety of iCo-007 after repeated injections in patients with DME;
• Poster presentation by research collaborators at the Association of Research and Ophthalmology 2014 annual meeting titled "Demographics and Baseline Characteristics of the iDEAL Study: A Randomized, Multi-center, Phase II Study of the Safety, Tolerability and Bioactivity of Repeated Intravitreal Injections of iCo-007 as Monotherapy or in Combination with Ranibizumab or Laser Photocoagulation in the Treatment of Diabetic Macular Edema with Involvement of the FoveAL Center."

Subsequent events to quarter-end:

• Announced that all nominees listed in the management information circular dated May 28, 2014, were elected as directors of the company at the 2014 annual meeting of shareholders, held on Friday, June 27, 2014;
• Reported results of its oral amphotericin B drug candidate targeting latent HIV reservoirs. The study, conducted by ImmuneCarta, the immune monitoring business unit of Caprion, evaluated in vitro effectiveness of oral amp B in reactivating latent HIV viral reservoirs, which remain present in individuals despite intensive treatment with anti-retroviral therapy.

Summary second-quarter 2014 results

iCo incurred total comprehensive loss of $1,617,040 (loss per share of two cents) for the six months ended June 30, 2014, compared with a total comprehensive loss of $2,886,831 (loss per share of five cents) for the six months ended June 30, 2013, representing a decrease of $1,269,791 in comprehensive loss. The decrease in net comprehensive loss is primarily a result of a $259,755 increase in the carrying value of the company's investment in Immune Pharmaceuticals, as well as a decrease in expenses associated with the iDEAL trial.

Research and development expenses were $1,026,287 for the six months ended June 30, 2014, compared with $2,189,830 for the six months ended June 30, 2013, representing a reduction of $1,163,543. This decrease in research and development expenses is based mainly on reduced expenses associated with the iDEAL study. For the six months ended June 30, 2014, general and administrative expenses were $935,374 compared with $1,166,480 for the six months ending June 30, 2013, representing a decrease of $231,106, primarily as a result of reduced stock-based compensation expense and professional fees.

Liquidity and outstanding share capital

As at June 30, 2014, the company had cash, cash equivalents and short-term investments of $6,480,200. As at Aug. 29, 2014, it had an unlimited number of authorized common shares, with 84,457,713 common shares issued and outstanding. For complete financial results, please see the company's filings at SEDAR.

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