Organetix Chief Executive Seth M. Shaw Issues Letter to Shareholders on Current Status of Financing Activity and Definitive Agreement with KidFitness, Inc.

Organetix Chief Executive Seth M. Shaw Issues Letter to Shareholders on Current Status of Financing Activity and Definitive Agreement with KidFitness, Inc.

NEW YORK, Aug. 30 /PRNewswire-FirstCall/ -- Organetix, Inc. (BULLETIN BOARD: OGTX) Chief Executive Officer ("CEO"), Seth M. Shaw, has issued the following communication to shareholders, in response to numerous inquiries about the status of the definitive agreement with KidFitness, Inc.

Dear Shareholders,

On August 13, 2007 Organetix entered into a definitive share exchange agreement ("definitive agreement") to acquire a 100% interest in New York- based media firm KidFitness, Inc. ("KidFitness"). Since then I have worked very closely with the management of KidFitness towards establishing a reliable roadmap to satisfy the closing terms set within the definitive agreement. I have the greatest respect for the management of KidFitness and their commitment to building both a strong national brand and a viable solution to combat childhood obesity. Through a previously announced partnership with The United Way, the KidFitness "Fun Fitness Break" will be provided with the assistance of corporate sponsors (free of charge) to public school classrooms K through 5th grade across the country. This represents an unprecedented branding opportunity, as millions of public school students are expected to exercise -- every day for 7 minutes -- to the KidFitness branded content. We expect this to translate into extremely lucrative licensing opportunities for KidFitness, including leveraging the brand equity into multiple product lines.

It is important to discuss the status of the definitive agreement, signed by both Organetix and KidFitness on August 13, 2007. There are various closing terms set fourth in that agreement, the most significant of which is the completion of a $7 - $12 million private placement by Organetix. The purpose of this capital raise is to provide KidFitness with the requisite working capital to improve existing content and aggressively pursue revenue generating partnerships and licensing agreements. Despite current weakness in the share price of Organetix, I remain confident that Organetix will successfully complete this private placement at terms that are reflective of the value of KidFitness. Raising capital is about proving the fundamental value of a business to both sophisticated institutional investors and accredited individual investors. It is the responsibility of management to sell its vision to the investment community and create shareholder value moving forward. Recently, there have been a number of constructive meetings with institutional investors and ongoing negotiations are currently taking place, with respect to potential financing terms.

My short term goal is to provide the shareholders and prospective institutional investors with a better understanding of the fundamental value of KidFitness, as a business opportunity. I am working diligently with the KidFitness management team to provide the public with meaningful updates, to better establish valuation criteria for the Company. Under terms of the definitive agreement, Organetix has until the middle of November (2007) to satisfactorily meet its closing obligations. This should provide the Company with sufficient time to overcome inherent market volatility and properly demonstrate the value of the enterprise. I believe the KidFitness' business model represents a compelling opportunity to create shareholder value in both the shorter and longer terms. I greatly appreciate the continued support of our shareholders as we work towards completing the transaction in a timely manner.

   Sincerely    Seth M. Shaw   Interim President & CEO, Organetix, Inc.   

In addition, KidFitness CEO Paul Neville, added the following statement: "I am fully committed to completing this transaction with Organetix and creating value for shareholders of KidFitness. I will work very closely with Mr. Shaw and his management team in exposing the significant value of KidFitness to the investment community. I am very excited about the business opportunities that lie ahead for KidFitness."

About Organetix Inc.

Organetix Inc. (BULLETIN BOARD: OGTX) has defined its short-term strategy as evaluating potential acquisition candidates to both restore and create shareholder value. On August 13, 2007, the Company entered into a binding definitive agreement to acquire 100% of New York-based privately held KidFitness, Inc. The Company is currently working towards the successful completion of the transaction with KidFitness, although there are no guarantees a final deal will be consummated.

About KidFitness, Inc.

Founded in 2003, KidFitness, Inc. has developed comprehensive media based programs to assist young children in improving fitness and health. Specifically the Company's exercise programs target a growing national health concern known as Child Obesity. The Company has a multi-year contract with American Public Television, a national program distributor of PBS programming. KidFitness has just completed series 200, which consists of 13 episodes produced in high definition, and is now available in more than 82 million American households. In addition in July 2007, the Company announced a partnership with The United Way to provide national public school classrooms with a KidFitness 7 minute fitness break to improve the health of students. Please visit the website at http://www.kidfitnesstv.com/.

Disclaimer

This press release may include certain statements that are not descriptions of historical facts, but are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may include the description of our plans and objectives for future operations, assumptions underlying such plans and objectives, statements regarding benefits of the proposed acquisition and other forward-looking terminology such as "may," "expects," "believes," "anticipates," "intends," "projects" or similar terms, variations of such terms or the negative of such terms. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements made herein. Such information is based upon various assumptions made by, and expectations of, our management that were reasonable when made but may prove to be incorrect. All of such assumptions are inherently subject to significant economic and competitive uncertainties and contingencies beyond our control and upon assumptions with respect to the future business decisions which are subject to change. Accordingly, there can be no assurance that actual results will meet expectations and actual results may vary (perhaps materially) from certain of the results anticipated herein.

First Call Analyst:
FCMN Contact:

Source: Organetix, Inc.

CONTACT: Mr. Seth M. Shaw, Interim President & CEO, +1-917-796-9926,
sethsms47@aol.com

Web site: http://www.kidfitnesstv.com/

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Profile: International Entertainment