EXHIBIT 99.1

PhytoMedical Finalizing Transition of Diabetes Compound Development.

Development of new class of polyphenolic diabetes drug transitions to  experienced pharmaceutical development facility; Previous results of polyphenolic compounds showed up to 29% reduction in blood sugar levels.  

Princeton, NJ – January 16, 2007 -  PhytoMedical Technologies, Inc. (OTCBB: PYTO) (FWB: ET6) today announced that it is finalizing the developmental transition of its new class of polyphenolic compounds, which possess unique antioxidant and insulin enhancing qualities, distinct from existing classes of drugs for diabetes, to a highly respected, pre-clinical centric laboratory. This will enable PhytoMedical to expedite the pursuit of an Investigational New Drug (IND) application with the FDA which, if approved, will allow the Company to initiate Phase 1 human studies.

 "We are completing the next steps in our transition development strategy, which will ultimately allow us to move closer to our IND filing," states Mr. Greg Wujek, President and CEO of PhytoMedical Technologies. “Our new compound for Type 2 diabetes has demonstrated promising results, which was the basis for expediting the development.” 

For the past several years, research has been dedicated to providing insight and understanding of how type A-1 polyphenols work as a treatment for type 2 diabetes.  Our goal is to develop that knowledge into treatment options that surpass today’s choices for type 2 diabetes.

In a published study of type-2 diabetes patients, these polyphenolic compounds significantly reduced blood sugar levels by an average of 18 to 29 percent, triglycerides (fatty acids in blood) by 23 to 30 percent, LDL (or “bad”) cholesterol by 7 to 27 percent, and total cholesterol by 12 to 26 percent.  Amazingly, no side effects were reported in the study.

At a cost of $132 billion - nearly one out of every ten health care dollars spent in the United States - diabetes afflicts 7% of the American population.  Impacting approximately 21,000,000 Americans, diabetes has become the sixth leading cause of death, and the leading cause of lower limb amputations.  In all cases, insulin function is critical to the treatment of diabetic patients.

About PhytoMedical Technologies, Inc.

PhytoMedical Technologies, Inc. (OTCBB: PYTO; Frankfurt Stock Exchange: ET6), together with its wholly owned subsidiaries, is a pharmaceutical company focused on research, development and commercialization of pharmaceutical products.

For additional information, please visit www.PhytoMedical.com  

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