Aradigm Announces Third Quarter 2012 Financial Results

Aradigm Announces Third Quarter 2012 Financial Results

<0> Aradigm CorporationNancy Pecota, 510-265-8800Chief Financial Officer </0>

(the “Company”)today announced financial results for the third quarter and nine months ended September 30, 2012.

Total revenue was approximately $0.3 million for the third quarter of 2012 compared with revenue of approximately $0.2 million for the third quarter of 2011. Revenue in both quarters reflects the quarterly royalty payment from Zogenix for product sales of SUMAVEL® DosePro™ needle-free delivery system for treatment of acute migraine and cluster headaches.

The Company’s net loss for the third quarter of 2012 was approximately $2.0 million, or $0.01 per share, compared with a net loss of approximately $2.4 million, or $0.01 per share, for the third quarter of 2011. Total operating expenses for the third quarter of 2012 were approximately $1.8 million, compared with total operating expenses of approximately $2.3 million for the third quarter of 2011. The decrease in operating expenses was primarily due to lower clinical costs for the inhaled ciprofloxacin program versus the prior year period.

As of September 30, 2012, cash, cash equivalents and short-term investments totaled approximately $4.1 million.

Aradigm is an emerging specialty pharmaceutical company focused on the development and commercialization of drugs delivered by inhalation for the prevention and treatment of severe respiratory diseases. The Company has product candidates addressing the treatment of bronchiectasis, cystic fibrosis, inhalation tularemia and anthrax infections, and prevention of respiratory and other diseases in tobacco smokers through smoking cessation.

More information about Aradigm can be found at .

Except for the historical information contained herein, this news release contains forward-looking statements, including, but not limited to, statements regarding the product development efforts for the inhaled ciprofloxacin program and continued receipt of royalties from Zogenix, Inc. These forward-looking statements involve risk and uncertainties, as well as the other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K for the year ended December 31, 2011 filed with the SEC on March 28, 2012, and the Company’s Quarterly Reports on Form 10-Q.

Aradigm and the Aradigm Logo are registered trademarks of Aradigm Corporation.

* The balance sheet at December 31, 2011 has been derived from the audited financial statements at that date.