Aradigm Corporation Names Norman Halleen as Interim Chief Financial Officer

Aradigm Corporation (the "Company") (OTCBB: ARDM) today announced it has named Norman Halleen as Interim Chief Financial Officer, effective July 2, 2007. Mr. Halleen will serve as a consultant to Aradigm on an interim basis, and will report to Igor Gonda, Ph.D., Aradigm's President and Chief Executive Officer.

"We are very pleased and fortunate to have Norm Halleen return to Aradigm in a consultant capacity. His experience and knowledge of the pharmaceutical industry and drug development process will be a valuable asset as we advance our drug candidates," said Dr. Gonda.

Mr. Halleen served as Aradigm's Vice President, Finance and Chief Financial Officer from 1999 to 2001, and has more than two decades of senior-level financial and management experience, primarily in the healthcare industry. Previously, he was Senior Vice President and Chief Financial Officer for InterMune, Inc., a biopharmaceutical company with annual revenues of approximately $150 million. Prior to that, he was Vice President and Chief Financial Officer for Syrrx, Inc., a drug discovery company. Mr. Halleen holds a Bachelor of Arts degree from Stanford University, and a Master of Business Administration from Harvard Graduate School of Business.

About Aradigm

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. Current activities include partnered and self-initiated development programs addressing the treatment of cystic fibrosis, bronchiectasis, pulmonary hypertension, asthma, inhalation anthrax infections and smoking cessation.

In addition, Aradigm's AERx® insulin Diabetes Management System (iDMS), which has been licensed to Novo Nordisk for development and commercialization in return for royalties, is in Phase 3 testing for Type 1 and Type 2 diabetes. Under the agreements with Novo Nordisk, Novo Nordisk is responsible for all further clinical, manufacturing and commercial development, while Aradigm and Novo Nordisk continue to cooperate and share in technology development, as well as intellectual property development and defense. Novo Nordisk also remains a substantial shareholder and investor in Aradigm. 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 the advancement of drug candidates, as well as the other risks detailed from time to time in Aradigm Corporation's Securities and Exchange Commission (SEC) Filings, including Aradigm's Annual Report on Form 10-K, and quarterly reports on Form 10-Q.

Aradigm and AERx are registered trademarks of Aradigm Corporation.