HAYWARD, CA -- (MARKET WIRE) -- 10/24/2006 -- Aradigm Corporation (NASDAQ: ARDM) announced today that it has filed a preliminary registration statement on Form S-1 with the U.S. Securities and Exchange Commission (SEC) for a proposed public offering of up to twenty-three million shares (including an over-allotment option of up to three million shares) of its common stock. All of the shares in the proposed offering are being sold by the company.

Punk Ziegel & Company will act as underwriter and book-running manager for the proposed offering. This offering will be made only my means of a prospectus. When available, copies of the prospectus relating to these securities may be obtained, from: Punk Ziegel & Company, Attention Syndicate, 520 Madison Avenue, New York, New York, 10022, Telephone 212-308-9494, Fax 212-308-1466.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Aradigm is an emerging specialty pharmaceutical company focused on the development and commercialization of a portfolio of drugs delivered by inhalation for the treatment of severe respiratory diseases by pulmonologists.

Except for the historical information contained herein, this news release contains forward-looking statements that involve risk and uncertainties, including preclinical and clinical results, the timely availability and acceptance of new products, the impact of competitive products and pricing, the availability of funding from partners or capital markets, and the management of growth, as well as the other risks detailed from time to time in Aradigm Corporation's Securities and Exchange Commission (SEC) Filings, including the company's Annual Report on Form 10-K, and quarterly reports on Form 10-Q.

Aradigm and AERx are registered trademarks of Aradigm Corporation.