TransOral Pharmaceuticals Raises $40 Million in Series D Financing

Proceeds Will Be Used to Complete Intermezzo™ Phase 3 Clinical Trials and File NDA

Pt. Richmond, CA - March 6, 2007 – TransOral Pharmaceuticals, Inc. announced today that it has closed a Series D financing in the amount of $40 million. The capital raised will support the development of Intermezzo™ through NDA filing in the second half of 2008. Intermezzo™ is the company’s lead product candidate for the treatment of insomnia in patients who awaken in the middle of the night and have difficulty returning to sleep.

The investor syndicate was led by New Enterprise Associates (NEA) and included follow-on investments by New Leaf Venture Partners, Montreux Equity Partners, InterWest Partners, Hamilton BioVentures, Vivo Ventures, Peninsula Equity Partners, and Hercules Technology Growth Capital.

Glenn A. Oclassen, TransOral President & CEO, stated, “We are pleased to add the proven capabilities and resources of New Enterprise Associates to our existing group of strong investors.”

“We believe Intermezzo™ will address an important and underserved segment of the insomnia market.” said Jake Nunn, New Enterprise Associates Partner. “This investment provides TransOral with the financial strength to file the Intermezzo™ NDA and we look forward to working with the company to leverage its unique position and create significant shareholder value.”