CERAGENIX COMPLETES $3.2 MILLION CONVERTIBLE NOTE TRANSACTION

Ceragenix Pharmaceuticals, Inc., ("Ceragenix" or the "Company"), a development stage biopharmaceutical company, (OTCBB:CGXP) today announced that it had completed a financing in which the Company sold $3.2 million in convertible notes (the "Notes") in a private transaction to four institutional investors. The Notes accrue interest at the rate of 10% per annum, payable quarterly, with principal and any accrued interest payable in full on November 28, 2007.

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