Cobalis Announces $3.85 Million in Second Series of Funding

Cobalis Corp. a pharmaceutical development company specializing in anti-allergy medications, announced recently that it has received its Second Closing of $675,000 in accordance with the terms of its Security Purchase Agreement dated December 20, 2006.

As previously announced, a $2.5 million debenture was issued at the First Closing on December 20, 2006. Pursuant to the Security Purchase Agreement, the Second Closing was to occur with the filing of a Registration Statement for shares underlying the $3.85 million funding. The final and Third Closing of $675,000 shall be funded after the Company’s related Registration Statement is declared effective by the United States Securities and Exchange Commission, provided Cobalis shareholders have approved an increase in authorized Cobalis’ shares.

Cobalis intends to use the proceeds of its Second Closing to complete data collection and analysis, and to report top-line efficacy results from its ten-week twin Phase III Clinical Trials for its anti-allergy medication, PreHistin™. The 1,551 patient randomized, double blind, placebo-controlled trials completed patient dosing in October 2006. The trials were designed to test the safety and efficacy of pre-seasonal treatment with PreHistin on moderate to moderately severe seasonal ragweed allergy patients.

Cobalis Corp. is a specialty pharmaceutical development company specializing in medications to prevent and treat atopic disease, including allergies, migraine headache, atopic asthma and dermatitis. Its flagship drug candidate PreHistin is an allergy prevention medication in Phase III clinical development. Cobalis plans to seek FDA approval to market PreHistin over-the-counter in the US.

For more information, please visit: www.cobalis.com