SAN MARINO, Calif., March 9, 2011 /PRNewswire/ -- A new report from VG Energy, a subsidiary of Viral Genetics, Inc. (Pinksheets: VRAL), is now featured in an article at EnergyBoom.com (link: http://www.energyboom.com/biofuels/algal-fuel-vg-energy-study-shows-price-parity-possible-conventional-oil ). The EnergyBoom.com piece is entitled "Algal Fuel: VG Energy Study Shows Price Parity Possible With Conventional Oil." The original report was undertaken by biofuels expert John Sheehan, an advisor to Viral Genetics and VG Energy, and is available for download at: http://www.vgenergy.net/SheehanBoyceTechNote20110208.pdf.

"The work being undertaken by VG Energy is showing great promise as a viable and cost effective alternative energy source," said Viral Genetics' CEO, Haig Keledjian. "This report by Mr. Sheehan helps to point the way forward for us, and the coverage from EnergyBoom.com indicates that we are making progress and garnering attention from industry. Our next steps are focused on moving from the laboratory to a production setting."

Mr. Sheehan's report indicates that VG Energy's proprietary technology has the potential to create algal biofuel at prices that are competitive with current prices for crude oil. The process that VG Energy and its lead researcher, Dr. M. Karen Newell Rogers, are using could potentially lower the cost for algal oil production by significant amounts, making it comparable with conventional oil. This process results in increased lipid production in the algae cells as well as increasing the ability to recycle these cells. The report models several different production techniques currently in use with their productivity enhanced by use of VG Energy's compounds through increased lipid production and recyclability, showing a range of prices at which algae oil can be produced.  VG Energy is planning studies to demonstrate these yields in practice. Mr. Sheehan is currently the Biofuels Coordinator in the Institute on the Environment at the University of Minnesota, and was previously a project manager at the National Renewable Energy Laboratory in Golden, CO.

The process that VG Energy uses to boost algal oil production is a direct result of work undertaken by Dr. Newell Rogers for cancer treatment. This process, called Metabolic Disruption Technology (MDT), is meant to disrupt cancer cells' ability to burn fat reserves, making them more susceptible to traditional treatments. The same technology appears to also act as a long sought lipid trigger to cause algae cells to store increased fat, making them more productive as an energy source. When the process was applied to algae cells in the lab, extractable lipid, or fat, production was increased by a minimum of 300%. Additionally, the process enables the cells to release fats outside the cell walls, making much of the algae recyclable. The combination of increased lipid production and recyclability appears to make algae economical as a source for a potential biofuel. Dr. Newell Rogers, the Raleigh R. White, Jr. Endowed Professor of Surgical Research at Texas A&M Health Sciences Center and Scott and White Hospital in Temple, Texas, is continuing her research into biofuel technology.

About VG Energy

VG Energy Inc. is an alternative energy and agricultural biotech company that is a majority-owned subsidiary of Viral Genetics Inc., a biotechnology company researching new treatments and methods of detection for diseases including cancer, HIV/AIDS and others. Using its Metabolic Disruption Technology ("MDT"), Viral Genetics' cancer research led to discoveries with major consequences in a wide variety of other industries, including bio-fuel and vegetable oils. VG Energy Inc. holds the exclusive worldwide license to the MDT patent rights for use in the increase of production of various plant-derived oils from algae and seeds. Importantly, these pivotal discoveries promise to allow the biofuel industry to overcome its major obstacle in the area of production efficiency: namely an increase in production yields leading to feasible economic returns on investment allowing renewable biodiesel to be competitive with fossil fuels. For more information please visit www.vgenergy.net.

About Viral Genetics, Inc.

San Marino, California-based Viral Genetics discovers drug therapies. Founded in 1994, the biotech company is researching treatments for HIV/AIDS, Lyme Disease, Strep, Staph and drug resistant tumors. A majority-owned subsidiary called VG Energy (www.vgenergy.net) is dedicated to exploring biofuel and agricultural applications for one of the technologies in its licensed portfolio. Online at www.viralgenetics.com

SAFE HARBOR FOR FORWARD-LOOKING STATEMENTS:

This news release contains forward-looking statements that involve risks and uncertainties associated with financial projections, budgets, milestone timelines, clinical development, regulatory approvals, and other risks described by Viral Genetics, Inc. from time to time in its periodic reports. None of Viral Genetics' drug compounds are approved by the US Food and Drug Administration or by any comparable regulatory agencies elsewhere in the world. While Viral Genetics believes that the forward-looking statements and underlying assumptions reasonable, any of the assumptions could be inaccurate, including, but not limited to, the ability of Viral Genetics to establish the commercial suitability of the lipid trigger, or of the efficacy of any of its drug therapies in the treatment of any disease or health condition, the development of studies and strategies leading to commercialization of those drug compounds in the United States, the obtaining of funding required to carry out development plans, the completion of studies and tests on time or at all, and the successful outcome of such studies or tests. Therefore, there can be no assurance that the forward-looking statements included in this release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the forward-looking statements should not be regarded as a representation by Viral Genetics or any other person that the objectives and plans of Viral Genetics will be achieved.

www.viralgenetics.com

SOURCE Viral Genetics, Inc.