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DR. PETER DAVIES REVIEWS AND QUESTIONS CONVENTIONAL APPROACHES IN ALZHEIMER’S DISEASE RESEARCH

APPLIED NEUROSOLTUIONS’ FOUNDING SCIENTIST CHAIRS PRESS BRIEFING FOR ALZHEIMER’S ASSOCIATION

Philadelphia, PA July 21, 2004-- Speaking this afternoon in Philadelphia at a press briefing sponsored by the Alzheimer's Association, Peter Davies, Ph. D., founding scientist and scientific advisor of Applied NeuroSolutions (OTC: BB APNS), reviewed conventional approaches in Alzheimer's disease therapeutic research and development and questioned whether next-generation anti-amyloid therapies now in clinical trials will provide significantly better results for patients.

“In my opinion, these new drugs are unlikely to make much difference to patients with Alzheimer’s disease,” Davies said.

Davies, who served as chairman of today's Alzheimer's Association press briefing entitled "New Treatment Direction: Anti-Amyloid Therapies" at the Association’s 9th International Conference on Alzheimer's Disease and Related Disorders, posed the following question to the audience. “If amyloid plaques are only an effect of the disease, which is what I and others believe, what good would it do to block their build-up? In my opinion, the mechanism that causes Alzheimer’s disease would likely still be present. However,” he continued, "as in all science, theories need to be tested".

Davies also said that, in view of the broad interest and enthusiasm from major pharmaceutical companies for this approach, he strongly believes that anti-amyloid theories should be thoroughly explored. “While I personally believe that a therapeutic approach to treating AD must incorporate stopping the formation of both the neurofibrillary tangles and amyloid plaques, I would be very happy to find out that I am wrong, and that an anti-amyloid therapeutic is developed to help people suffering from this horrible disease” Dr. Davies concluded.

The news conference discussed results from three amyloid research studies. These included: the safety of a Gamma-Secretase inhibitor in healthy volunteers (Eli Lilly and Company); development of BACE 1 inhibitors (Merck and Co.); and Alzheimer’s patient data on AlzhemedTM (Georgetown University Medical Center).

Amyloid plaques are lesions that form between brain neurons as protein fragments (beta-amyloids) are snipped off. Neurofibrillary tangles are insoluble, twisted fibers found inside neurons, formed of a protein called tau, that occur when the cell’s inner structure (the microtubule) breaks down. Together, these conditions are present in an Alzheimer’s brain and define the condition. Most next-generation therapeutics have been designed to treat amyloid formation only.

Dr. Davies believes that AD research must follow both the neurofibrillary tangle and amyloid pathways to identify earlier points in which intervention could make a difference in the progression of the disease. Dr. Davies is the Judith and Burton P. Resnick Professor of Alzheimer’s Disease Research at the Albert Einstein College of Medicine, in the Bronx.

Applied NeuroSolutions is developing products to diagnose and treat Alzheimer’s disease based on a novel theory of AD cause and pathology. In partnership with Dr. Davies’ scientific team at Albert Einstein College of Medicine, Applied NeuroSolutions is developing a cerebrospinal fluid (CSF) test to detect Alzheimer's disease at a very early stage with 85%-95% accuracy. The company is also developing a serum-based screening test to detect AD, as well a new class of therapeutics to treat AD.

There are currently no FDA-approved diagnostics for Alzheimer’s disease.

This press release contains forward-looking statements. Applied NeuroSolutions wishes to caution the readers of this press release that actual results may differ from those discussed in the forward-looking statements and may be adversely affected by, among other things, the risks associated with new product development and commercialization, clinical trials, intellectual property, regulatory approvals, potential competitive offerings, and access to capital. For further information, please visit the company's website at www.appliedneurosolutions.com, and review the company's filings with the Securities and Exchange Commission.