Cardax, Inc., announced that it is refocusing its business strategy on its astaxanthin dietary supplement ZanthoSyn® for consumer health. The Company aims to rebuild consumer sales with a reduced corporate cost structure to improve operating cash flow and achieve profitability.

While Cardax also believes in the value of its pharmaceutical program, attempts to finance its continued development have been unsuccessful to date. The Company may seek to monetize its pharmaceutical assets through licensing or sale and is engaged in discussions with third parties around this strategy. Other strategic alternatives are also under consideration.

The Company also announced today the restructuring of its Board of Directors, in connection with this refocused business strategy. George W. Bickerstaff, III, Terence A. Kelly, Ph.D., Michele Galen, Elona Kogan, and Makarand Jawadekar, Ph.D., have resigned effective immediately from the Board of Directors. The former directors are supportive of the corporate refocus, and their departures are not the result of any disagreements with the Company regarding its operations, policies, or practices. David G. Watumull, Cardax Chief Executive Officer and Director, has been appointed Chairman and serves as the Company's sole director. The Company may seek additional directors with consumer health expertise.

As recently reported, the Company suspended its public reporting obligations to decrease legal fees, accounting costs, and management time, which are being reallocated to advancing the Company's core business strategy. In connection with such action, Cardax Chief Financial Officer, John B. Russell, an independent contractor previously engaged to support the Company's public reporting obligations, has resigned effective immediately to reduce corporate overhead. Mr. Russell's departure is not the result of any disagreement with the Company regarding its operations, policies, or practices. Cardax Chief Operating Officer, David M. Watumull, has assumed the additional role of Chief Financial Officer.

The Company has also reduced its employee headcount and implemented other cost-saving measures to support the refocused business strategy.

"After careful consideration, we believe this refocused strategic direction provides the most efficient path to value creation and is in the best interests of our stakeholders," said David G. Watumull, Cardax Chairman and CEO. "We wholeheartedly thank our departing Board members and other former personnel for their years of dedicated service and insightful contributions. We will miss working with them."

The Company notes that this press release contains certain forward-looking statements and can provide no assurance about future results, as further described in the Safe Harbor section below. In addition, due to the Company's recent decision to voluntarily suspend public reporting obligations, the Company will no longer file periodic and current reports with the Securities and Exchange Commission.