March 27, 2008
PRESS RELEASE:

Pegasus Files Patents on New Biological Toxic Mold Control Product, Opens Lab & Appoints Distributor for Marketing to Multi-Billion Dollar Worldwide Mold Removal Market.

PALM BEACH GARDENS, FL -- (MARKET WIRE)

Pegasus Pharmaceuticals (PINKSHEETS: PGUZ) today announced that it has filed for patents for its innovative biological product, MOLD GONE(TM). Pegasus is engaged in the research, development and marketing of anti-microbial compositions and systems for killing, inhibiting and growth prevention of fungal matter such as live cells, spores and mycotoxins associated with molds.

"Our revolutionary MOLD GONE(TM) product represents a tremendous opportunity for the Company in a worldwide market estimated to be worth over 10 billion USD per year," stated Dr. Vladimir Podlipskiy, PhD, Vice-President of Pegasus Pharmaceuticals. Other mold prevention products often involve chemically aggressive, hazardous compounds with limited effectiveness. Due to these market conditions, the mold remediation market remains virtually untapped worldwide. Health problems related to high levels of airborne mold spores include allergic reactions, asthma episodes, irritations of the eye, nose and throat, infections, sinus congestion and other respiratory problems.

To further facilitate the research and development processes, Pegasus has opened a new, fully-equipped Biosciences Laboratory in the biotech hub of San Diego, California. The laboratory will focus on the biosynthesis pathway inhibition of the major components of the fungal cell membranes to further develop the Company's intellectual properties. Another key function of the laboratory will be to provide pilot manufacturing of the MOLD GONE(TM) product as well as providing technical support for the sales and marketing teams.

In a recent laboratory test conducted by ECA Inc., an independent testing facility based in San Diego, California, MOLD GONE(TM) demonstrated an extraordinary 100% efficiency (0% mold growth) over a 100 day period and outperformed four other leading U.S. anti-mold products. The rigorous testing was conducted under extreme conditions with high humidity and heat as well as higher than normal concentrations of mold spores. (Over 2,000,000 spores per square inch.) MOLD GONE(TM)'s active ingredients are non-toxic, biodegradable and are naturally occurring. Pegasus' management team feels that this cost-effective, breakthrough product represents a new era in anti-microbial, anti-fungal protection because it not only removes black mold infestation, it also cleans and disinfects surfaces and prevents further mold spore growth.

To implement its sales and marketing plans for MOLD GONE(TM), Pegasus has appointed and signed a contract with Commander International Inc., a Los Angeles-based company that will market the product under the brand name MOLD & MILDEW DOCTOR(TM). The marketing objectives for 2008 will be to present the product to the world market and to attain a significant market share of the mold remediation market worldwide. Commander International has over twenty years' experience and a successful track record in sales/marketing/distribution of a wide range of product launches throughout North America to companies such as Wal-Mart, Walgreen's, Dollar Tree, Dollar General, Family Dollar, Big Lots, Fred's, etc. Commander also has an extensive international network with business associates in China, India, Bangladesh, Indonesia, Argentina, Brazil, Chile, Mexico, United Kingdom and the European Union.

We adhere to the statutes and provisions of the Safe Harbor Act.

For more information, please contact:

Paul Davey
Investor Services
(778) 389-0915
Email: paul@pegasusbiosciences.com

Daniel P. Kesonen
Chairman & CEO
Pegasus Pharmaceuticals Inc.
Palm Beach Gardens, FL
(561) 626-9901
Visit the Company's website at: www.pegasusbiosciences.com