Not quite. What this does is reduce the strength of the fear response associated with the memory. So, after administering this to a person, they would still remember the traumatic event, but they would tell you that it wasn't so bad after all.

Therapeutically that's the important part since it will help the person get on with their lives. That's why this discovery could potentially be revolutionary for recovery from PTSD, rape, and even phobia. But it's not the same as 'erasing' the memory, and arguably would be better for therapy.