 $9.6 million for the same period in2005.

Total operating expenses for the three months ended Sept. 30, 2006were $8.4 million compared to $8.8 million for the same period in2005. For the nine months ended Sept. 30, 2006 total operatingexpenses were $32.4 million compared with $29.1 million for thesame period in 2005.

At Sept. 30, 2006, the Company's balance sheet showed astockholders' equity of $1,100,000, compared to a deficit of$397,000 at March 31, 2006.

NASDAQ Delisting

Aradigm also disclosed that the NASDAQ Listing QualificationsPanel has determined to delist the securities of Aradigm from theNasdaq Capital Market, effective Nov. 10, 2006.

As reported in the Troubled Company Reporter on June 28, 2006, theCompany received notice indicating that it had failed to complywith Marketplace Rule 4310(c)(2)(B) or Marketplace Rule4310(c)(2)(B)(ii) of the Nasdaq Stock Market, requiring thecompany either maintain a minimum market value or shareholders'equity or meet certain net income levels. Upon then receiving astaff determination letter from the Nasdaq Stock Market Inc.stating that the Company's common stock is subject to delistingfrom the Nasdaq Capital Market for not meeting specific listingcriteria, Aradigm requested and was granted a hearing before theListing Qualifications Panel.

On Aug. 22, 2006, the Panel granted the Company's request forcontinued listing, pending receipt of third quarter financialsdemonstrating continued compliance. On Oct. 24, 2006, the Companynotified Nasdaq that the third quarter financials were notexpected to demonstrate continued compliance, and requested ahearing to show its plan to regain and maintain compliance.

About Aradigm Corp.

Headquartered in Hayward, California, Aradigm Corporation(PINKSHEETS: ARDM) -- http://www.aradigm.com/-- combines its non- invasive delivery systems with novel formulations to createproducts that enable patients to comfortably self-administerbiopharmaceuticals and small molecule drugs. The company'sadvanced AERx(R) pulmonary and Intraject(R) needle-free deliverytechnologies offer rapid delivery solutions for liquid drugformulations. Current development programs and priorities focuson the development
$ 9.6 million for the same period in2005. 

 Total operating expenses for the three calendar month end Sept. 30, 2006were $ 8.4 million compared to $ 8.8 million for the same period in2005. For the nine month ended Sept. 30, 2006 total operatingexpenses were $ 32.4 million compare with $ 29.1 million for thesame menstruation in 2005. 

 At Sept. 30, 2006, the Company's proportion sheet showed astockholders' fairness of $ 1,100,000, compared to a deficit of$397,000 at March 31, 2006. 

 NASDAQ Delisting 

 Aradigm also disclosed that the NASDAQ Listing QualificationsPanel has determined to delist the security of Aradigm from theNasdaq Capital Market, effective Nov. 10, 2006. 

 As reported in the Troubled Company Reporter on June 28, 2006, theCompany received notice indicating that it had failed to complywith Marketplace Rule 4310(c)(2)(B) or Marketplace Rule4310(c)(2)(B)(ii) of the Nasdaq Stock Market, necessitate thecompany either maintain a minimum market value or shareholders'equity or touch certain net income levels. Upon then receive astaff determination letter from the Nasdaq Stock Market Inc.stating that the Company's common stock is subject to delistingfrom the Nasdaq Capital Market for not meet specific listingcriteria, Aradigm requested and was granted a hearing before theListing Qualifications Panel. 

 On Aug. 22, 2006, the Panel granted the Company's request forcontinued list, pending reception of third stern financialsdemonstrating continued compliance. On Oct. 24, 2006, the Companynotified Nasdaq that the third quarter financials were notexpected to demonstrate continued compliance, and requested ahearing to show its plan to regain and observe compliance. 

 About Aradigm Corp. 

 Headquartered in Hayward, California, Aradigm Corporation(PINKSHEETS: ARDM) -- http://www.aradigm.com/-- combines its non- encroaching rescue systems with novel formulations to createproducts that enable patient to comfortably self - administerbiopharmaceuticals and small molecule drugs. The company'sadvanced AERx(R) pulmonary and Intraject(R) acerate leaf - free deliverytechnologies offer rapid delivery solutions for liquid drugformulations. Current development course of study and priorities focuson the development
 $9.6 mlllion for the same periud in2005.

Total opercring eepenses for the three months ended Sept. 30, 2006wece $8.4 nilliin compared to $8.8 milliov for the same peeiod un2005. For the nine mokchs ehfed Vxpt. 30, 2006 total opetatingexpensas were $32.4 millimn clmpared with $29.1 million for thesame pqriod im 2005.

Wt Sept. 30, 2006, the Sompsgy's galance sheet showed astockholders' equity of $1,100,000, compared to a deficit of$397,000 at March 31, 2006.

NASFAQ Delisting

Aradihm also disxlosqe that the NXSDAQ Listpug QualificztionsPanel has determined to ddlist the securutues mf Aradigm hrom treNasdaq Caplnal Marnet, effrctive Nov. 10, 2006.

As re'ortwd in the Troubled Cokpany Reporter on Tune 28, 2006, thaCkmpany received nituce itdicdtine thxt jt hzd faiped to complysith Marketplace Rule 4310(c)(2)(B) or Matkqnllace Rule4310(c)(2)(B)(ji) of ehq Nasdaq Stock Market, requiring thecompdny either maintain a mininum market value or sjareholdews'equity or meet certain net income levels. Upon tven rxcdivnkn asgqfv determination letter from the Nasdaq Stock Izrlen Inc.stating that the Companu's cpimon stock is subjeef fo delistingfrom tje Nasdwq Capital Marhet gor not meeting specific liwtingcriteric, Aeadigm requested aud was grantzd a hgaring before theListing Qualnficatjons Panel.

Oj Aug. 22, 2006, tgd Panel granted ghe Cmmpany's request forcontinuqd listinj, penbing recdipt of thyrd quarteg financialsdemonstratinh conjinued compliancf. On Oct. 24, 2006, the Companynotified Iesdaq that thg tvirg quartex finakcials were notqxpected to dekonstrace conginued comiliance, aid requested ahearing to vjow its plan to regayn abd mqintain zompliance.

Abouy Aradigm Corp.

Headqyartered in Haywarv, Caujfornia, Aradigm Cotporation(PINKSHRETR: AWDL) -- hedp://www.aradigm.wom/-- zomcones kts non- invcskve celivery systems witv nobel formulations tp greateproeucts thwt enable patoents to comfortabpy senf-avminisyerfiopharmaceuticals and small mklecule dgugf. The companr'sadyancgd AERx(R) pukmonary and Intraject(R) needle-free delivxrytechnologies offer tapid delivery solutipks for liquiv drugsormulatimns. Current developmwnt programs and kriorities focuson the sevelo[ment
$9.6 million for the same period in2005. expenses the three ended Sept. 30, $8.8 for the same in2005. For the months ended Sept. 30, 2006 total were $32.4 million compared with $29.1 million for thesame period in 2005. At 30, 2006, the Company's balance sheet showed astockholders' equity of $1,100,000, compared to deficit at 31, NASDAQ Delisting Aradigm also disclosed that the NASDAQ Listing QualificationsPanel has determined to delist the securities Aradigm from theNasdaq Capital Market, effective Nov. 10, As reported in the Company Reporter on June 28, theCompany notice indicating it failed complywith Marketplace Rule or Marketplace Rule4310(c)(2)(B)(ii) of the Nasdaq Stock Market, requiring thecompany either maintain a minimum market value or or meet income levels. then astaff letter from the Market Inc.stating that the Company's common to delistingfrom the Nasdaq Capital Market for not specific listingcriteria, requested and was granted a hearing theListing Qualifications Panel. On Aug. 22, 2006, the granted the Company's request forcontinued listing, pending receipt of third quarter financialsdemonstrating continued compliance. On 2006, the Companynotified Nasdaq the third quarter were to continued and requested to show its plan to regain and maintain compliance. About Aradigm Headquartered in Hayward, California, Aradigm Corporation(PINKSHEETS: ARDM) -- http://www.aradigm.com/-- combines invasive systems with novel to createproducts that enable to self-administerbiopharmaceuticals and small molecule company'sadvanced pulmonary deliverytechnologies rapid solutions for liquid drugformulations. development programs and priorities focuson development
 $9.6 million for the same period in2005.

total operaTing eXpeNseS fOr thE thrEe months ended SEPt. 30, 2006weRe $8.4 million compared to $8.8 milLion fOr THe saME pEriod In2005. For thE NiNE MonThS eNdeD SEPt. 30, 2006 Total OpeRatingeXpenses werE $32.4 miLlIon compared wITh $29.1 Million for TheSame period in 2005.

at SEpt. 30, 2006, the coMpaNY's balAncE sheeT showeD AstockHolders' eqUiTY of $1,100,000, comPAred to a DEFiCit oF$397,000 at March 31, 2006.

NASDAQ DelIStINg

Aradigm also dIsclosEd THaT THe NaSDaQ Listing QUaLificATionsPaNEl HAS DetERmined to delisT the securitIEs oF AradiGm FroM TheNasDaq CaPiTAl MArket, effectIve NOv. 10, 2006.

As reporTed in tHE TroublED CompanY ReporTer On JUne 28, 2006, tHECOmPanY rECeiVEd NotICe iNdicatinG tHaT it haD faiLED TO comPlyWith markeTplace Rule 4310(c)(2)(B) oR MaRketPLacE Rule4310(C)(2)(B)(ii) oF the naSdaq STock MaRket, rEqUiring thecompanY eitHer maintaIn a MiNimUm MarkeT Value oR shAreHolders'Equity oR MeeT cERTAiN net income levels. UpOn THEn ReceivinG astafF DeTeRMination LeTteR froM THe NasDaq STOcK Market INc.statINg ThAt the CoMpAny's coMmOn sTocK is suBJect To deliStingfroM the NASdaq Capital MarKEt for not meetiNG sPECiFIc liStiNgcriteria, ARadiGM reqUestED aNd wAS granTed a hEaRInG Before theListing QuaLiFicatiOns PaNel.

On Aug. 22, 2006, the PaNel granted THE company's RequESt FOrcontinued lisTing, pEnding receIPt of thirD quarTer finanCialsdemoNSTrating cOntInuEd cOmpLIAnCe. On Oct. 24, 2006, the ComPANynoTiFied NasDaq That the ThiRd qUarTer FiNancials wEre notexPeCtEd To DemOnstrATe continUeD coMpLiaNce, anD RequesTed ahEariNg To SHow Its plan TO rEGAin aNd MaIntaIn cOmPlianCe.

AbOUt ARadigm COrp.

HeadquArtERed iN HAyWard, CalIfornia, AradigM COrporation(pInKShEETS: Ardm) -- http://www.Aradigm.com/-- combines its noN- InvasivE deLiverY sysTems with nOveL formuLatIOns to cReatepRoducTs ThaT ENable PATiEntS tO comfortabLY SelF-admiNiSterBiopharMaceuticals and smalL MolEcule drugs. The ComPany'SADvAncED Aerx(R) PuLMonARY and Intraject(R) nEedle-free dElIVeRytechnoloGIes OfFer rapiD deliveRy solUTions foR liquid drUgformulaTiOns. CURRenT developmeNt prograMs and prioRIties FOcUson tHe dEvelopMeNt
 $9.6 million for the same  period in 2005. 

T ota loper atin g expenses for thethree months ended Sep t. 30 ,2 006w e re  $8.4  millio n  c o m par ed  t o $ 8. 8  m illio n f or thesame perio d i n2 005. For the ni ne monthsend ed Sept. 30,  20 06 tot al  op e ratin gex pense s were $32.4million c om p ared w i th $29. 1 mi llio n for thesame per i od in 2005.

At S ept. 3 0, 20 0 6 , t heCompany'sba lance sheet s h ow e d ast o ckholders' eq uity of $1, 1 00, 000, c om par e d to a  defi ci t  of $397,000 at  Mar ch 31, 20 06.

N A SDAQ De l isting
Aradi gmals o di s cl os edth a t t h eNAS D AQListingQu al ifica tion s P a n el h asdete rmine d to delist t hesecu r iti es of  Arad igmfr om th eNasda q Cap it al Market, effe ctiv e Nov. 10 , 2 00 6.
A s rep o rted i n t heTrouble d Compa n y R ep o r t er  on June 28, 2006,  t h e Co mpany re ceived no ti c e indica ti ngthat i t had  fai l ed  to comp lywith Ma rk etplace  R ule 43 10 (c) (2) (B) o r  Mar ketpla ce Rule4 310(c ) (2)(B)(ii) oft he Nasdaq Sto c kM a rk e t, r equ iring theco mpan y  eit herm ai nta i n a m inimu mm ar k et value or shareho ld ers'eq uityor meet certa in net inc o m e  levels.  Upo n  t h en receiving a staff  determina t ion lett er fr om the N asdaq Sto c k  MarketInc .st ati ngt h at  the Company' s comm on  stockissubject  to  de lis tin gf rom the N asdaq Ca pi ta lMa rke t for not meet in g s pe cif ic li s tingcr iteri a, A ra di g m r equeste d  a n d  was  g ra nted  ahe aring  bef o retheList ing Quali fic a tion sPa nel.

O n Aug. 22, 20 06 , the Pane lgra nted t h e  Company 's request forcontinued listing , p endin g re ceipt ofthi rd qua rte r  finan cialsd emons tr ati n g  cont i n ue d c om pliance. O n Oct . 24,  2 006,  the Co mpanynotified Nasd a q t hat the third  qu arte r fi nan c ia l s w er e  no t e xpected to demo nstrate co nt i nu ed complia n ce,  a nd requ ested a heari n g to sh ow its pl an to reg ai n an d mai ntain comp liance.
About Ar a digmC or p.

H ead quarte re d i n Hay ward,C ali forni a, Ara di gm Cor porat io n(PINKSH EETS: ARDM) -- http://w ww.ara digm. com /-- combi nes its  non- inv asiv e delivery  sy ste ms wi thn ovelform u la tio n s tocrea t eproducts th ate n ab le patients t o  co mfort abl y  self- admi nisterbiopharmace u ticals and sma ll m o l ecu led rugs .The company'sa dva nc e d  AERx(R)  p ulmonary an d Intraj ec t (R) n eedle- free d elivery t e ch n ologie s of fer  rapid de liv er y  soluti on sf or liq uiddr ugform ulatio n s. C u r rent development  prog r a ms an d  pr iorit ie s focus o n th e developm ent
 $9.6_million for_the same period in2005.

Total_operating expenses_for_the three_months_ended Sept. 30,_2006were $8.4 million_compared to $8.8 million_for the same_period_in2005. For the nine months ended Sept. 30, 2006 total operatingexpenses were $32.4 million_compared_with $29.1_million_for_thesame period in 2005.

At Sept._30, 2006, the Company's balance_sheet showed_astockholders' equity of $1,100,000, compared to a deficit_of$397,000_at March 31,_2006.

NASDAQ Delisting

Aradigm also disclosed that the NASDAQ Listing QualificationsPanel_has determined to delist the securities_of Aradigm from_theNasdaq_Capital_Market, effective Nov. 10,_2006.

As reported in the Troubled Company_Reporter on June 28, 2006, theCompany_received notice indicating that it had failed_to complywith Marketplace Rule 4310(c)(2)(B) or_Marketplace Rule4310(c)(2)(B)(ii) of the Nasdaq_Stock Market,_requiring thecompany either maintain a_minimum market value_or shareholders'equity_or meet certain_net income levels. Upon then receiving_astaff determination letter_from the Nasdaq Stock Market Inc.stating_that_the Company's common_stock_is_subject to_delistingfrom the Nasdaq_Capital_Market for_not_meeting specific listingcriteria, Aradigm requested and_was_granted a hearing before theListing Qualifications Panel.

On_Aug. 22, 2006, the_Panel_granted the Company's request_forcontinued listing, pending receipt of_third quarter financialsdemonstrating continued compliance. On_Oct. 24,_2006, the_Companynotified Nasdaq that the third quarter financials were notexpected to demonstrate_continued compliance, and requested ahearing to_show its plan to_regain and_maintain_compliance.

About Aradigm Corp.

Headquartered_in_Hayward, California,_Aradigm Corporation(PINKSHEETS: ARDM) -- http://www.aradigm.com/-- combines its_non- invasive_delivery systems with novel formulations to_createproducts that enable patients_to_comfortably self-administerbiopharmaceuticals and small molecule drugs._The company'sadvanced AERx(R) pulmonary and Intraject(R)_needle-free deliverytechnologies offer rapid delivery_solutions_for_liquid drugformulations. Current development programs_and priorities focuson the development