Release issued 1st July 2004

- Richard Thompson To Remain As Chairman

HAYWARD, Calif., July 1, 2004 - Aradigm Corporation (Nasdaq: ARDM) today announced that it has promoted V. Bryan Lawlis, Ph.D. to the position of President and Chief Executive Officer from his previous post of President and Chief Operating Officer effective August 1, 2004. Aradigm's Chairman and current CEO, Richard Thompson, will remain as Chairman of the Board of Directors. Dr. Lawlis has more than 20 years of senior management experience in the biotechnology and pharmaceutical industries and, since joining Aradigm in 2001, has been responsible for leading the day-to-day operations of the company.

Richard Thompson stated: "This promotion is part of a planned succession, and acknowledges the significant contributions that Bryan has made throughout his career and during his time at Aradigm. I am confident in Bryan's ability to lead the company, and I look forward to working closely with him in his new role. I will continue to be active in the company, focusing on commercial and financial strategies as we move towards our first product launch."

Dr. Lawlis commented on his near-term objectives as CEO: "We will accelerate Aradigm's path to market using the Intraject technology, which is being validated in clinical trials this summer. Intraject delivery is appropriate for both small molecules and proteins and offers an accelerated clinical and regulatory route for products already dosed by subcutaneous injection. Aradigm will move forward aggressively to realize this potential through its own product development efforts and with partners. At the same time, we will continue to work with Novo Nordisk on our Phase 3 development program for the pulmonary delivery of insulin using our AERx platform and with our other partners for the AERx technology who are pursuing earlier-stage pulmonary drug delivery programs."

Dr. Lawlis began at Aradigm in 2001 as Chief Operating Officer and was promoted to President and Chief Operating Officer in June 2003. Prior to joining Aradigm, Dr. Lawlis was a founder of Covance Biotechnology Services, a contract biopharmaceutical manufacturing operation, where he served as its President and Chief Executive Officer from 1996 to 1999, and its Chairman from 1999 to 2001. From 1981 to 1996, Dr. Lawlis was employed at Genencor, Inc., and Genentech, Inc. where his last position was Vice President of Process Sciences. Dr. Lawlis holds a B.A. in Microbiology from the University of Texas at Austin, and a Ph.D. in Biochemistry from Washington State University.

Under his operational leadership, Aradigm has enhanced its core manufacturing competencies, completed critical commercial scale-up efforts, successfully acquired and advanced the development of Intraject, and strengthened the operations management team.

Aradigm is working to improve the quality of life for patients through the development of new therapies delivered via its innovative liquid delivery technologies. The Company's AERxÒ advanced pulmonary delivery system and its IntrajectÒ needle-free delivery system provide leading pharmaceutical and biotechnology partners with effective solutions for product self-administration. The company's most advanced product is in Phase 3 clinical trials for the treatment of diabetes in partnership with Novo Nordisk, a world leader in diabetes care. More information about Aradigm can be found at www.aradigm.com.

Except for the historical information contained herein, this news release contains forward-looking statements that involve risk and uncertainties, including clinical results, the timely availability and acceptance of new products, the impact of competitive products and pricing, 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.

AERx and Intraject are registered trademarks of Aradigm.

(13th July 2005) Aradigm Advances Development of Intraject Sumatriptan With New Clinical Trial Data

(26th January 2005) Aradigm Expands Financial and Strategic Strength on Closing of Restructured Licensing Agreement With Novo Nordisk

(13th December 2004) Aradigm Signs Development and Licensing Agreements for the Treatment of Respiratory Infections

(17th November 2004) Aradigm Announces Results from Clinical Study of Intraject Needle-Free System with Sumatriptan

(13th October 2004) Aradigm Demonstrates Clinical Performance of Intraject Needle-Free System