Real Estate Asset Liquidation Program Successfully Concluded

Exhibit 99.1


FOR FURTHER INFORMATION CONTACT:
Deborah S. Lorenz
Vice President, Investor Relations and
Corporate Communications
Lipid Sciences, Inc.
925-249-4031
dlorenz@lipidsciences.com

FOR IMMEDIATE RELEASE:
June 3, 2004

LIPID SCIENCES, INC. ANNOUNCES SALE OF REAL ESTATE ASSETS
TOTALING $5.4 MILLION

Real Estate Asset Liquidation Program Successfully Concluded

PLEASANTON, Calif., June 3, 2004 ? Lipid Sciences, Inc. (Nasdaq:LIPD) today announced the sale of real estate notes receivable totaling $5.4 million. This sale represents another successful transaction in the Company's two-year long asset liquidation program designed to provide working capital to fund the advancement of Lipid Sciences' proprietary delipidation process and delivery system. At the time of the merger between Lipid Sciences and NZ Corporation (NZ) in late 2001, the fair market value of NZ's real estate portfolio was estimated to be $61.4 million. To date, sales of the real estate assets have generated $66.9 million in working capital.

Dr. S. Lewis Meyer, President and Chief Executive Officer, commented, "The underlying scientific and financial fundamentals of Lipid Sciences have never been stronger. By combining the prudent management of cash and working capital, the Company now has at its disposal sufficient capital to fund our operations at least through the early part of 2006." He continued, "The recent announcement of our scientific breakthrough of selective delipidation and the significant advancement in the development of our proprietary, cost-effective delivery system are two major development milestones we have successfully completed. We are now positioned from both a scientific and financial standpoint to aggressively continue with the development of our HDL Therapy and Viral Immunotherapy platforms in parallel. Careful preparation for our anticipated ...