Cortex Pharmaceuticals Announces Corporate Restructuring and Workforce Reduction

Cortex Pharmaceuticals Announces Corporate Restructuring and Workforce Reduction

IRVINE, Calif., Mar 19, 2009 — Cortex Pharmaceuticals, Inc. (NYSE Alternext US (COR)) announced a significant restructuring of its organization which involved a reduction of personnel by approximately 50%. The workforce reduction is in addition to other capital preserving initiatives, including the reduction of salaries for the Company's Executive Officers. Because of the continuing uncertainty in the capital markets and the global economy, Cortex took steps to reduce its monthly spending requirements to align its current resources with its strongest near-term opportunities. Cortex will focus its efforts on the development of its clinical programs involving CX717 and CX1739, which it believes will have the greatest opportunity for creation of shareholder value. At the same time it has significantly reduced basic research efforts in early, non-clinical stage programs.

"This restructuring is an absolute necessity in the light of the current financial climate," said Mark Varney, Ph.D., President and CEO of Cortex. "I would like to express my gratitude for the contributions and commitment of our outstanding employees who were impacted by the workforce reduction. However, we need to ensure that Cortex can continue to advance its promising pipeline compounds. In the near term, these programs have the potential to address three very large markets of ADHD, sleep apnea and respiratory depression. Obviously, over the longer term we plan to continue to develop additional applications in Alzheimer's disease, Parkinson's disease, and other neurodegenerative disorders."

Currently, Cortex has four programs in clinical or preclinical development representing diverse chemical structures and market opportunities. These programs include:

-- CX717: one of Cortex's Low Impact AMPAKINE(R) drugs that achieved proof-of-concept in opioid-induced respiratory depression. Current efforts are focused on the development of an intravenous dosage form of CX717.

-- CX1739: an AMPAKINE compound that is currently in a Phase II sleep apnea study, with expected completion around mid-2009. A Phase II study in ADHD in adult patients is planned to be initiated around mid-year in the US.

-- CX1942: a unique AMPAKINE pro-drug with enhanced water solubility which is approximately 5-6 times as potent as CX717 and has potential in both i.v. and oral respiratory depression applications and sleep apnea. Cortex plans to advance the compound into toxicology and Phase I clinical trials over the next year, when additional capital becomes available.

-- CX2007: A compound in a new chemistry space, with a longer half-life than other compounds that will be advanced for the treatment of ADHD and Alzheimer's disease, when additional capital becomes available.

"Given the current state of the capital markets, we will continue to evaluate all options for raising cash, including licensing, partnering, and other strategic options. Cortex is currently working diligently to secure several out-licensing and partnering opportunities, which if and when completed, will provide a significant infusion of capital," stated Mark Varney.

Cortex Pharmaceuticals, Inc.

Cortex, located in Irvine, California, is a neuroscience company focused on novel drug therapies for treating psychiatric disorders, neurological diseases and brain-mediated breathing disorders. Cortex is pioneering a class of proprietary pharmaceuticals called AMPAKINE compounds, which act to increase the strength of signals at connections between brain cells. The loss of these connections is thought to be responsible for memory and behavior problems in Alzheimer's and Huntington's disease. Many psychiatric diseases, including schizophrenia, occur as a result of imbalances in the brain's neurotransmitter system. These imbalances may be improved by using the AMPAKINE technology. For additional information regarding Cortex, please visit the Company's website at http://www.cortexpharm.com.