Hemispherx distributes fraudulent Oprah Winfrey videotape.

On July 29, 1998 The Oprah Winfrey Show aired a show titled “Diseases Doctors Miss Most.” This show contained a brief segment that discussed Chronic Fatigue Syndrome (“CFS”). There was no mention of Hemispherx Biopharma, Inc. (AMEX Symbol: HEB) (Price: $7.6875) or Ampligen in the CFS segment or any other part of the show. Hemispherx made copies of the CFS segment of this Oprah Winfrey episode without authorization, and used the copies to create its own promotional videotape. Hemispherx then distributed these fraudulent Oprah Winfrey promotional tapes to investors as part of its fraudulent stock promotion. We have confirmed that neither Ms. Winfrey nor Harpo Productions, Inc. (“Harpo”), the producer and copyright holder of The Oprah Winfrey Show, has any relationship with Hemispherx. We have also confirmed that neither Ms. Winfrey nor Harpo has authorized Hemispherx to make any use of any part of The Oprah Winfrey Show for any purpose.

Oprah Winfrey’s CFS segment was based on the testimony of Wilhelmina Jenkins and her daughter. Both claim to be CFS sufferers. Ms. Jenkins failed to disclose that she serves as Treasurer and Director of The CFIDS Association of America. Ms. Jenkins and many alleged CFS patients are advocates of controversial and unproven CFS medical claims. There is no known cause or diagnostic test for CFS. The number of actual CFS patients, who are not suffering from other mental and physical disorders, is unknown and likely impossible to estimate. Many CFS patients oppose the view that CFS is a psychological disorder. Alleged CFS sufferers are well organized and active in the promotion of CFS. We believe that CFS’ popularity and poor definition have assisted Hemispherx’s fraudulent stock promotion.

Hemispherx’s recent and short-lived stock run up began with its fraudulent use of Oprah Winfrey’s copyrighted material. Promotion on internet stock forums claiming Hemispherx and Ampligen would be mentioned on The Oprah Winfrey Show began on July 9, 1998, a full 20 days before the show aired. Hemispherx’s stock ran up from a closing price of $4 1/4 on July 9th, to a high of $13 3/16 on September 9th. No event of any kind occurred during this period that could remotely explain or support this rise of over $350 million in Hemispherx’s value. We believe that Hemispherx’s share price remains grossly overvalued despite the shares recent decline. We know of no pending possible event, either imminent or long term, that could explain Hemispherx’s current over $300 million market value. We reiterate our Hemispherx price target of less than $1 per share.

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