21/06/2012 (MarketWatch) - Viral Genetics (pinksheets:VRAL), through its majority owned subsidiary VG Energy, is now verifying the chemical activity in industrial scale batches of LipidMax(TM) in response to demand for the product from research institutes and from industry. LipidMax, the first product marketed by VG Energy, is a lipid enhancement compound for use in the production of oils from algae and other plants or plant-like organisms and is based on the Company's exclusively licensed Metabolic Disruption Technology (MDT). VG Energy is launching LipidMax in response to unsolicited demand for MDT compounds from algae oil producers after it announced testing results during the preceding year.

Separately, VG Energy also reports that LipidMax has shown in an initial internal study to potentially increase the amount of extracted palm oil when applied to raw palm fruit. The enormous market for palm oil growers is heavily concentrated in Southeast Asia and this has led the Company to commence the formation of an operating subsidiary to be called VG Energy (Asia) Sdn Bhd. Its objectives are to explore the possible applications of LipidMax(TM) in the palm oil industry and act as the distribution arm for VG Energy, Inc. The global palm oil industry delivered more than 160 million metric tons of product last year, at $895/ton representing more than $140 billion annually.

The product release testing is predominantly focused on verifying that the chemical activity of industrial-scale batches of LipidMax from the manufacturers identified by VG Energy is comparable to the smaller, laboratory-sized batches used in testing. Once product release testing is complete, VG Energy will order larger quantities from its final manufacturer(s) and begin to deliver samples to prospective buyers for their own field-testing which it anticipates will lead to commercial orders thereafter.

"We thought it prudent to engage a manufacturing facility to be able to secure quick delivery and access to LipidMax. We believe this marks one of the most exciting milestones in Viral Genetics' and VG Energy's history representing the nearest term potential to generate first time revenues," stated Haig Keledjian, President of VG Energy and Viral Genetics.

VG Energy's impetus to begin contract manufacture of the LipidMax product is the direct result of demand from industry and research institutes after review of the results of both internal and external studies showing LipidMax's ability to substantially increase the amount of lipids from algae, seeds, yeast and potential future markets in other edible oils such as palm oil.

Palm oil is an edible oil derived from the fruit of the oil palm plant and is found in foods such as ice cream, cookies, peanut butter, pies, power bars, baked goods and snacks. It is one of the leading cooking oil products in the world, especially in Southeast Asia. It can also be found in personal care products such as soaps, shampoos, cosmetics, skin care. Palm oil, like other vegetable oils, can be used to create biodiesel as either a simple, processed palm oil mixed with petroleum-based diesel, or processed through transesterification to create a palm oil methyl ester blend, which meets the international EN 14214 specification.

About VG Energy
VG Energy, Inc. is an alternative energy and agricultural biotech company that is a majority-owned subsidiary of Viral Genetics, Inc., a biotechnology company researching new treatments and methods of detection for diseases including cancer, HIV/AIDS and others. Using its Metabolic Disruption Technology (MDT), Viral Genetics' cancer research led to discoveries with major consequences in a wide variety of other industries, including biofuel and vegetable oils. VG Energy holds the exclusive worldwide license to the MDT patent rights for use in the increase of production of various plant-derived oils from algae and seeds. These pivotal discoveries promise to allow the biofuel industry to overcome its major obstacle in the area of production efficiency: namely, an increase in production yields leading to feasible economic returns on investment, allowing renewable biodiesel to be competitive with fossil fuels. For more information, please visit http://www.vgenergy.net .

About Viral Genetics, Inc.
San Marino, California-based Viral Genetics discovers drug therapies from two platform technologies based on over 60 patents: Metabolic Disruption (MDT) and Targeted Peptides (TPT). Founded in 1994, the biotech company is researching treatments for HIV/AIDS, Lyme Disease, Strep, Staph and drug resistant cancer. A majority-owned subsidiary, VG Energy ( www.vgenergy.net ), is dedicated to exploring biofuel and agricultural applications for the MDT platform. For more information, visit www.viralgenetics.com .

This news release contains forward-looking statements that involve risks and uncertainties associated with financial projections, budgets, milestone timelines, clinical development, regulatory approvals, and other risks described by Viral Genetics, Inc. from time to time in its periodic reports, including statements about its VG Energy, Inc. subsidiary. None of Viral Genetics' drug compounds are approved by the US Food and Drug Administration or by any comparable regulatory agencies elsewhere in the world, nor are any non-pharmaceutical products of VG Energy, Inc. commercialized. While Viral Genetics believes that the forward-looking statements and underlying assumptions are reasonable, any of the assumptions could be inaccurate, including, but not limited to, the ability of Viral Genetics to establish the efficacy of any of its drug therapies in the treatment of any disease or health condition, the development of studies and strategies leading to commercialization of those drug compounds in the United States, the obtaining of funding required to carry out the development plan, the completion of studies and tests on time or at all, the successful outcome of such studies or tests, or the successful commercialization of VG Energy, Inc.'s non-pharmaceutical products. Therefore, there can be no assurance that the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the forward-looking statements should not be regarded as a representation by Viral Genetics or any other person that the objectives and plans of Viral Genetics will be achieved.

SOURCE: Viral Genetics, Inc.