Exhibit 99.1

Contact: Medical Discoveries, Inc.                   FOR IMMEDIATE RELEASE
801-582-9583


              MEDICAL DISCOVERIES ESTABLISHES ALLIANCE WITH EUCODIS
                CO-DEVELOPMENT OF TOPICAL BREAST CANCER TREATMENT

SALT LAKE CITY, Utah and VIENNA, Austria- August 3, 2006 -- Medical Discoveries,
Inc. (OTCBB: MLSC) and Eucodis, announced today a licensing Agreement for
Medical Discoveries' formestane cream, a topical steroidal treatment for breast
cancer.

The Agreement provides Eucodis, an Austrian biotechnology company with drug
development expertise, exclusive European development rights in exchange for an
upfront license fee and milestone payments totaling approximately US$2.5
million. Eucodis maintains responsibility for costs associated with formestane
cream's Phase II trial which is set to commence in 2007. The data collected from
these trials will meet the requirements for submission to the world's leading
regulatory bodies, the Food and Drug Administration (FDA) and the European
Medicines Agency (EMEA). At the conclusion of the Phase II trial, a steering
committee comprised of representatives from both companies will determine the
clinical and commercial roadmap for the Phase III trial and international
commercial launch. In the event Medical Discoveries and Eucodis jointly conduct
the Phase III trial, each company will share equal responsibility for the costs
incurred. If Eucodis maintains commercial rights for the EU or if formestane
cream is out licensed, Medical Discoveries will receive a royalty package.

"We are delighted to have Eucodis as a partner to facilitate clinical
development," said Judy Robinett, MDI's President & Chief Executive Officer.
"The Eucodis team's sense of urgency, drive and extensive European connections
will be invaluable as we proceed together through the next phases of the drug's
development."

Formestane is an aromatase inhibitor ("AI"), previously marketed as an
intramuscular depot injection for adjuvant treatment of breast cancer.
Formestane cream represents a novel treatment option based on the inhibition of
local production of estrogen, which is a key signal of tumor growth and
progression in more than 90% of breast cancer cases. Thus far, clinical
evaluation




has demonstrated significant reduction of tumor size and low toxicity relative
to current AI treatments. There have been no overt side effects observed
although further study is necessary to assure an acceptable toxicity profile. In
previous studies the local topical application to the breast showed significant
dose- dependent uptake. In addition, these studies have indicated stronger
down-regulation of estrogen production in the local breast tissue with a
significant shrinkage of tumor size, which is believed to be essential in
effecting tumor reduction.

"It means a great challenge and responsibility to us to play a meaningful role
in bringing an exciting, novel therapy to market that treats a debilitating
disease such as breast cancer," said Dr. Wolfgang Schoenfeld, Eucodis' Chief
Executive Officer. "This license represents a major step in the development of
our company. In addition to our internal projects in biopharmaceuticals, this
project strongly enhances our pipeline and paves the way for Eucodis' strategic
goal to develop and bring innovative products to the market."

ABOUT EUCODIS

Founded in 2004, Eucodis Forschungs -- und Entwicklungs GmbH (Vienna, Austria)
is a biotechnology company generating novel products in the life science area by
applying two powerful technologies mimicking natural processes of evolution: in
vivo recombination and somatic hypermutation. Eucodis' activities focus on
projects and products in fields of industrial enzymes and strain optimization as
well as generation of novel biopharmaceuticals and human antibodies.

ABOUT MEDICAL DISCOVERIES, INC.

Medical Discoveries, Inc. (OTC BB: MLSC) is a developmental-stage
bio-pharmaceutical company focused on therapies for major diseases. The Company
is leveraging MDI-P, its novel technology that inhibits pathogen production to
generate treatments for Cystic Fibrosis and HIV. In addition the company is
actively pursing in licensing opportunities for early stage programs.

Safe Harbor Statement

This news release contains forward-looking statements that involve significant
risks and uncertainties, including those discussed below and others that can be
found in MDI's Form 10-




KSB for the year ended December 31, 2005, and in MDI's periodic reports filed
with the Securities and Exchange Commission. MDI is providing this information
as of the date of this news release and does not undertake any obligation to
update any forward-looking statements contained in this document as a result of
new information, future events or otherwise.

This press release contains forward-looking statements regarding the potential
commercialization of MDI's formestane cream and MDI's business relationship with
Eucodis. Such statements are predictions and involve risks and uncertainties
such that the actual results may differ materially. Among other things, the
potential of the formestane cream could be affected by unexpected safety,
efficacy or manufacturing issues, discussions with the FDA or EMEA, FDA or EMEA
actions, failure to receive FDA or EMEA approval, and competition. No
conclusions can or should be drawn regarding the safety or effectiveness of any
product candidate. Only the FDA can determine whether a product candidate is
safe and effective for the use(s) being investigated. In addition, the Eucodis
relationship may not create the benefits MDI anticipates. Any successful
commercialization of formestane cream is also subject to MDI's resolution of
pending patent ownership issues with one of formestane cream's co-inventors.


CONTACT:
MEDICAL DISCOVERIES, INC.
Judy Robinett
Chief Executive Officer
+1.801.582.9583

EUCODIS
Wolfgang Schoenfeld, MD
Chief Executive Officer
+43 1 86634 9240

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