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    <title>
      Form 8K Entry into a Material Definitive Agreement and Departure of Directors
      or Principal officers; Appointment of Principal Officers
</title>
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      STATES </strong></font></div>
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      AND EXCHANGE COMMISSION</strong></font></div>
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      D.C. 20549</strong></font></div>
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      8-K</strong></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
      REPORT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PURSUANT
      TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934</strong></font></div>
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      of Report (Date of earliest event reported) </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>August
      29, 2006 </u></strong></font></div>
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      NEUROSOLUTIONS, INC.</strong></font></div>
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      name of Registrant as Specified in its Charter)</strong></font></div>
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      &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;001-13835&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;39-1661164
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(State
      or
      Other
      Jurisdiction&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;(Commission
      file Number)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
&#160;(IRS Employer </font></div>
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      of
      Incorporation)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Identification
      No.) </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>50
      Lakeview Parkway, Suite 111, Vernon Hills, IL 60061 </u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Address
      of Principal Executive Offices) (Zip Code)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
      telephone number, including area code </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>(847)
      573-8000</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
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      Written communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font></div>
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      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
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      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
      (17 CFR 240.14d-2(b))</font></div>
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      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
      (17 CFR 240.13e-4(c))</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -54pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Section
      1</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Registrant&#8217;s
      Business and Operations</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 45pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Entry
      into a Material Definitive Agreement</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      August
      29, 2006, in connection with the approval of the employment of Ellen R. Hoffing
      as the Registrant&#8217;s CEO and President, the Registrant&#8217;s Board of Directors and
      Ellen R. Hoffing agreed to the terms of her employment. The Registrant expects
      the parties to enter into a definitive employment agreement by the end of the
      third quarter of 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
      Hoffing will receive a base salary of $300,000 per annum plus a bonus of up
      to
      40% of her base salary, as determined by the compensation committee of the
      Registrant&#8217;s board of directors. Ms. Hoffing&#8217;s base salary and bonus will be
      pro-rated for the remainder of 2006 and are subject to annual review by the
      compensation committee. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
      Hoffing will be granted a stock option to purchase 6 million shares of the
      Registrant&#8217;s common stock at an exercise price equal to the closing price of the
      Registrant&#8217;s common stock on the over-the-counter market on the date of grant
      (which will be the date on which Ms. Hoffing and the Registrant&#8217;s Board of
      Directors agreed to the terms of her employment). The option will vest as to
      1,000,000 shares of common stock on the sixth month anniversary of the grant,
      and then will vest as to an additional 166,667 shares for each month thereafter
      until the option is vested in full (which will be on the third anniversary
      of
      the date of grant).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
      Hoffing will also receive a grant of 400,000 shares of restricted stock, which
      will vest as to 133,334 shares on the first anniversary of the date of grant
      and
      133,333 shares on the second and third anniversary.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      event that the Registrant terminates Ms. Hoffing&#8217;s employment for cause or Ms.
      Hoffing terminates her employment without good reason, she will not receive
      any
      severance. In the event that the Registrant terminates Ms. Hoffing&#8217;s employment
      without cause, she will be entitled to a severance payment of 12 months&#8217; salary
      and benefits and accelerated vesting of her options and restricted
      stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      Ms.
      Hoffing&#8217;s employment is terminated in connection with a change in control of the
      Registrant, she will be entitled to a lump sum payment equal to one year of
      her
      base salary and accelerated vesting of her options and restricted
      stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      initial term of Ms. Hoffing&#8217;s employment agreement will be one year.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -54pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Section
      5 - Corporate Governance and Management</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: -54pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.02. </strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Departure
      of Directors or Principal Officers; Election of Directors; Appointment of
      Principal Officers</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      August
      29, 2006, the Registrant&#8217;s Board of Directors approved the employment of Ellen
      R. Hoffing as the Registrant&#8217;s President and CEO. In addition, Ms. Hoffing was
      appointed by the Board of Directors to serve as a member of the Board of
      Directors, to fill the vacancy created when John F. DeBernardis, Ph.D. gave
      notice at the same meeting that he was resigning from the Board and as President
      of the Company, effectively immediately. Dr. Debernardis previously gave notice
      to the Board on July 14, 2006 that he was resigning as Chief Executive Officer,
      effective upon hiring a new CEO to replace him. Ms. Hoffing&#8217;s appointment as CEO
      and President will be effective as August 29, 2006 and her employment will
      begin
      in September 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Registrant expects the parties to enter into a definitive employment agreement
      by the end of the third quarter of 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
      Hoffing is an accomplished healthcare executive with a broad range of leadership
      experience in the following arease: strategic planning, global operations,
      marketing, finance and business development. In 2005, Ms. Hoffing was Vice
      President, Strategic Planning at American Pharmaceutical Partners, a publicly
      traded specialty pharmaceutical company focused on injectable oncology,
      anti-infective and critical care products. From 2002 to 2005, Ms. Hoffing was
      Vice President, Renal Pharmaceuticals at Baxter Healthcare, a New York Stock
      Exchange listed company. From 2001 to 2002, she was Vice President, Strategy
      and
      Acquisitions, at Merisant (the maker of Equal&#174;) and from 2000 to 2001, Ms.
      Hoffing was a strategy and management consultant to healthcare focused
      companies. Prior to 2000, Ms. Hoffing took on roles of increasing responsibility
      in her 17 years at the Searle division of Monsanto, which culminated in her
      position as Vice President, Global Analytics.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dr.
      DeBernardis, who has been with the Registrant since August 1993, and has served
      as the Registrant&#8217;s President and Chief Executive Officer since October 2004,
      will remain with the Company as a senior advisor to Ms. Hoffing and will focus
      on the development of therapeutics to treat AD with Dr. Peter Davies, the
      Company&#8217;s founding scientist.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      copy of
      the Registrant&#8217;s press release regarding the appointment of Ms. Hoffing as CEO,
      President and director is attached as Exhibit 99.1.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Section
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 18pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibits.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
      release dated August 29, 2006</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized on this 29th day of August 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 216pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">APPLIED
      NEUROSOLUTIONS, INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 216pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>
      /s/&#160;&#160;&#160;&#160;David Ellison</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 252pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name:
      David Ellison</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 252pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title:
      </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
      Financial Officer</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 252pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 216pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -22.5pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Applied
      NeuroSolutions Appoints Ellen Hoffing as President and CEO</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Former
      Searle, Baxter and American Pharmaceutical Partners Senior Healthcare Executive
      Hired to Lead the Company</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Vernon
      Hills, IL</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      August
      29, 2006 - Applied NeuroSolutions, Inc. (OTC BB:APNS, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>www.appliedneurosolutions.com</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">),
      a
      biopharmaceutical company developing novel therapeutic targets for the treatment
      of, and diagnostics for the detection of, Alzheimer&#8217;s disease (AD), today
      announced the appointment of former Baxter Healthcare Corporation (NYSE:BAX)
      and
      American Pharmaceutical Partners (now called Abraxis BioScience NasdaqGS:ABBI)
      executive Ellen R. Hoffing as its President and CEO and a member of its Board
      of
      Directors, replacing John DeBernardis, Ph.D. who announced his intent to step
      down as CEO on July 19, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Ms.
      Hoffing is an accomplished healthcare executive with a broad range of leadership
      experience in the following areas: strategic planning, global operations,
      marketing, finance and business development. Prior to her tenure at American
      Pharmaceutical Partners, where she was Vice President, Strategic Planning,
      Ms.
      Hoffing served as Vice President, Renal Pharmaceuticals at Baxter Healthcare.
      In
      her 17 years at the Searle division of Monsanto, Ms. Hoffing took on roles
      of
      increasing responsibility, including Vice President, Global Analytics, where
      she
      was a key contributor in the market preparation and global launch of blockbuster
      drugs such as Celebrex</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol">&#210;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      Dr. DeBernardis is stepping down as President, CEO and a member of the board
      he
      will remain with the Company as a senior advisor to Ms. Hoffing and will focus
      on the development of therapeutics to treat AD with Dr. Peter Davies, the
      Company&#8217;s founding scientist.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Commenting
      on the appointment, Robert S. Vaters, APNS Chairman of the Board said, &#8220;We are
      pleased to welcome Ellen to APNS and are confident that she has the skill set
      to
      lead APNS through our next stage of development. Her strong background in
      commercializing major pharma and healthcare products from the pre-clinical
      stage
      to global launch should be extremely valuable as we pursue significant licensing
      and partnership arrangements.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      reaction to her new role Ellen added &#8220;It is a thrilling time to be joining the
      company as it is well positioned to make important contributions to address
      the
      needs of Alzheimer&#8217;s patients and their families. I look forward to helping
      maximize the potential of APNS&#8217;s unique technology in this large and growing
      market.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>About
      Applied NeuroSolutions</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Applied
      NeuroSolutions, Inc. (OTC BB: APNS) is developing novel therapeutic targets
      for
      the treatment of, and diagnostics for the detection of, Alzheimer's disease.
      The
      company&#8217;s technology is based on discoveries originating from the Albert
      Einstein College of Medicine. Applied NeuroSolutions has developed a
      cerebrospinal fluid (CSF) test to detect early-stage Alzheimer's disease with
      an
      85%-95% accuracy in more than 3,500 patient samples. There are approximately
      2
      million new patients annually worldwide who are candidates for an AD CSF
      diagnostic test, according to the research firm Datamonitor. The company is
      also
      developing a blood serum-based screening test, as well as novel therapeutic
      targets for treatment of AD. Alzheimer's disease currently afflicts over 4
      million Americans, and the market for AD therapy is expected to grow to 21
      million patients by 2010 in the seven major pharmaceutical markets (USA, France,
      Germany, Italy, Spain, U.K. and Japan) according to BioPortfolio, Ltd. There
      is
      currently no FDA-approved diagnostic test to detect Alzheimer's disease. For
      more information, visit </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">www.appliedneurosolutions.com</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Contact:</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Applied
      NeuroSolutions, Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">David
      Ellison, CFO, 847-573-8000</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      press release contains forward-looking statements. Applied NeuroSolutions wishes
      to caution the readers of this press release that actual results may differ
      from
      those discussed in the forward-looking statements and may be adversely affected
      by, among other things, the risks associated with new product development and
      commercialization, clinical trials, intellectual property, regulatory approvals,
      potential competitive offerings, and access to capital. For further information,
      please visit the company's website at www.appliedneurosolutions.com, and review
      the company's filings with the Securities and Exchange Commission. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">###</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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[{"type": "8-K", "sequence": "1", "filename": "form8knewceoaug2906.htm", "description": "FORM 8K ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT AND DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; APPOINTMENT OF PRINCIPAL OFFICERS", "secsgml_size_bytes": 40809}]
{"company-data": {"conformed-name": "APPLIED NEUROSOLUTIONS INC", "cik": "0000872947", "assigned-sic": "2836", "irs-number": "391661164", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-13835", "film-number": "061070597"}, "business-address": {"street1": "50 LAKEVIEW PARKWAY S", "street2": "STE 111", "city": "VERNON HILLS", "state": "IL", "zip": "60061", "phone": "847 573 8000"}, "mail-address": {"street1": "50 LAKEVIEW PARKWAY", "street2": "STE 111", "city": "VERNON HILLS", "state": "IL", "zip": "60061"}, "former-company": [{"former-conformed-name": "HEMOXYMED INC", "date-changed": "20020820"}, {"former-conformed-name": "OPHIDIAN PHARMACEUTICALS INC", "date-changed": "19970714"}]}
Form 8K Entry into a Material Definitive Agreement and Departure of Directors
      or Principal officers; Appointment of Principal Officers
UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
PURSUANT
      TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934
Date
      of Report (Date of earliest event reported)
August
      29, 2006
APPLIED
      NEUROSOLUTIONS, INC.
(Exact
      name of Registrant as Specified in its Charter)
Delaware                                                
                     001-13835                          39-1661164
(State
      or
      Other
      Jurisdiction                (Commission
      file Number)          
 (IRS Employer
of
      Incorporation)                                                                                  Identification
      No.)
50
      Lakeview Parkway, Suite 111, Vernon Hills, IL 60061
(Address
      of Principal Executive Offices) (Zip Code)
Registrant's
      telephone number, including area code
(847)
      573-8000
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
|_|
      Written communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
|_|
      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
|_|
      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
      Act
      (17 CFR 240.14d-2(b))
|_|
      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
      Act
      (17 CFR 240.13e-4(c))
Section
      1
Registrant's
      Business and Operations
Item
      1.01
Entry
      into a Material Definitive Agreement
.
On
      August
      29, 2006, in connection with the approval of the employment of Ellen R. Hoffing
      as the Registrant's CEO and President, the Registrant's Board of Directors and
      Ellen R. Hoffing agreed to the terms of her employment. The Registrant expects
      the parties to enter into a definitive employment agreement by the end of the
      third quarter of 2006.
Ms.
      Hoffing will receive a base salary of $300,000 per annum plus a bonus of up
      to
      40% of her base salary, as determined by the compensation committee of the
      Registrant's board of directors. Ms. Hoffing's base salary and bonus will be
      pro-rated for the remainder of 2006 and are subject to annual review by the
      compensation committee.
Ms.
      Hoffing will be granted a stock option to purchase 6 million shares of the
      Registrant's common stock at an exercise price equal to the closing price of the
      Registrant's common stock on the over-the-counter market on the date of grant
      (which will be the date on which Ms. Hoffing and the Registrant's Board of
      Directors agreed to the terms of her employment). The option will vest as to
      1,000,000 shares of common stock on the sixth month anniversary of the grant,
      and then will vest as to an additional 166,667 shares for each month thereafter
      until the option is vested in full (which will be on the third anniversary
      of
      the date of grant).
Ms.
      Hoffing will also receive a grant of 400,000 shares of restricted stock, which
      will vest as to 133,334 shares on the first anniversary of the date of grant
      and
      133,333 shares on the second and third anniversary.
In
      the
      event that the Registrant terminates Ms. Hoffing's employment for cause or Ms.
      Hoffing terminates her employment without good reason, she will not receive
      any
      severance. In the event that the Registrant terminates Ms. Hoffing's employment
      without cause, she will be entitled to a severance payment of 12 months' salary
      and benefits and accelerated vesting of her options and restricted
      stock.
If
      Ms.
      Hoffing's employment is terminated in connection with a change in control of the
      Registrant, she will be entitled to a lump sum payment equal to one year of
      her
      base salary and accelerated vesting of her options and restricted
      stock.
The
      initial term of Ms. Hoffing's employment agreement will be one year.
Section
      5 - Corporate Governance and Management
Item
      5.02.
Departure
      of Directors or Principal Officers; Election of Directors; Appointment of
      Principal Officers
On
      August
      29, 2006, the Registrant's Board of Directors approved the employment of Ellen
      R. Hoffing as the Registrant's President and CEO. In addition, Ms. Hoffing was
      appointed by the Board of Directors to serve as a member of the Board of
      Directors, to fill the vacancy created when John F. DeBernardis, Ph.D. gave
      notice at the same meeting that he was resigning from the Board and as President
      of the Company, effectively immediately. Dr. Debernardis previously gave notice
      to the Board on July 14, 2006 that he was resigning as Chief Executive Officer,
      effective upon hiring a new CEO to replace him. Ms. Hoffing's appointment as CEO
      and President will be effective as August 29, 2006 and her employment will
      begin
      in September 2006.
The
      Registrant expects the parties to enter into a definitive employment agreement
      by the end of the third quarter of 2006.
Ms.
      Hoffing is an accomplished healthcare executive with a broad range of leadership
      experience in the following arease: strategic planning, global operations,
      marketing, finance and business development. In 2005, Ms. Hoffing was Vice
      President, Strategic Planning at American Pharmaceutical Partners, a publicly
      traded specialty pharmaceutical company focused on injectable oncology,
      anti-infective and critical care products. From 2002 to 2005, Ms. Hoffing was
      Vice President, Renal Pharmaceuticals at Baxter Healthcare, a New York Stock
      Exchange listed company. From 2001 to 2002, she was Vice President, Strategy
      and
      Acquisitions, at Merisant (the maker of Equal®) and from 2000 to 2001, Ms.
      Hoffing was a strategy and management consultant to healthcare focused
      companies. Prior to 2000, Ms. Hoffing took on roles of increasing responsibility
      in her 17 years at the Searle division of Monsanto, which culminated in her
      position as Vice President, Global Analytics.
Dr.
      DeBernardis, who has been with the Registrant since August 1993, and has served
      as the Registrant's President and Chief Executive Officer since October 2004,
      will remain with the Company as a senior advisor to Ms. Hoffing and will focus
      on the development of therapeutics to treat AD with Dr. Peter Davies, the
      Company's founding scientist.
A
      copy of
      the Registrant's press release regarding the appointment of Ms. Hoffing as CEO,
      President and director is attached as Exhibit 99.1.
Section
      9 - Financial Statements and Exhibits
Item
      9.01 Financial Statements and Exhibits
(d)
Exhibits.
99.1
Press
      release dated August 29, 2006
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized on this 29th day of August 2006.
APPLIED
      NEUROSOLUTIONS, INC.
By:
/s/    David Ellison
Name:
      David Ellison
Title:
Chief
      Financial Officer
Applied
      NeuroSolutions Appoints Ellen Hoffing as President and CEO
Former
      Searle, Baxter and American Pharmaceutical Partners Senior Healthcare Executive
      Hired to Lead the Company
Vernon
      Hills, IL
August
      29, 2006 - Applied NeuroSolutions, Inc. (OTC BB:APNS,
www.appliedneurosolutions.com
),
      a
      biopharmaceutical company developing novel therapeutic targets for the treatment
      of, and diagnostics for the detection of, Alzheimer's disease (AD), today
      announced the appointment of former Baxter Healthcare Corporation (NYSE:BAX)
      and
      American Pharmaceutical Partners (now called Abraxis BioScience NasdaqGS:ABBI)
      executive Ellen R. Hoffing as its President and CEO and a member of its Board
      of
      Directors, replacing John DeBernardis, Ph.D. who announced his intent to step
      down as CEO on July 19, 2006.
Ms.
      Hoffing is an accomplished healthcare executive with a broad range of leadership
      experience in the following areas: strategic planning, global operations,
      marketing, finance and business development. Prior to her tenure at American
      Pharmaceutical Partners, where she was Vice President, Strategic Planning,
      Ms.
      Hoffing served as Vice President, Renal Pharmaceuticals at Baxter Healthcare.
      In
      her 17 years at the Searle division of Monsanto, Ms. Hoffing took on roles
      of
      increasing responsibility, including Vice President, Global Analytics, where
      she
      was a key contributor in the market preparation and global launch of blockbuster
      drugs such as Celebrex
Ò
.
Although
      Dr. DeBernardis is stepping down as President, CEO and a member of the board
      he
      will remain with the Company as a senior advisor to Ms. Hoffing and will focus
      on the development of therapeutics to treat AD with Dr. Peter Davies, the
      Company's founding scientist.
Commenting
      on the appointment, Robert S. Vaters, APNS Chairman of the Board said, "We are
      pleased to welcome Ellen to APNS and are confident that she has the skill set
      to
      lead APNS through our next stage of development. Her strong background in
      commercializing major pharma and healthcare products from the pre-clinical
      stage
      to global launch should be extremely valuable as we pursue significant licensing
      and partnership arrangements."
In
      reaction to her new role Ellen added "It is a thrilling time to be joining the
      company as it is well positioned to make important contributions to address
      the
      needs of Alzheimer's patients and their families. I look forward to helping
      maximize the potential of APNS's unique technology in this large and growing
      market."
About
      Applied NeuroSolutions
Applied
      NeuroSolutions, Inc. (OTC BB: APNS) is developing novel therapeutic targets
      for
      the treatment of, and diagnostics for the detection of, Alzheimer's disease.
      The
      company's technology is based on discoveries originating from the Albert
      Einstein College of Medicine. Applied NeuroSolutions has developed a
      cerebrospinal fluid (CSF) test to detect early-stage Alzheimer's disease with
      an
      85%-95% accuracy in more than 3,500 patient samples. There are approximately
      2
      million new patients annually worldwide who are candidates for an AD CSF
      diagnostic test, according to the research firm Datamonitor. The company is
      also
      developing a blood serum-based screening test, as well as novel therapeutic
      targets for treatment of AD. Alzheimer's disease currently afflicts over 4
      million Americans, and the market for AD therapy is expected to grow to 21
      million patients by 2010 in the seven major pharmaceutical markets (USA, France,
      Germany, Italy, Spain, U.K. and Japan) according to BioPortfolio, Ltd. There
      is
      currently no FDA-approved diagnostic test to detect Alzheimer's disease. For
      more information, visit
www.appliedneurosolutions.com
.
Contact:
Applied
      NeuroSolutions, Inc.
David
      Ellison, CFO, 847-573-8000
This
      press release contains forward-looking statements. Applied NeuroSolutions wishes
      to caution the readers of this press release that actual results may differ
      from
      those discussed in the forward-looking statements and may be adversely affected
      by, among other things, the risks associated with new product development and
      commercialization, clinical trials, intellectual property, regulatory approvals,
      potential competitive offerings, and access to capital. For further information,
      please visit the company's website at www.appliedneurosolutions.com, and review
      the company's filings with the Securities and Exchange Commission.
###