AMBI Out-Licenses Biotech Drug Candidates Nisin and Lysostaphin to Biosynexus for $1.4 Million in Cash, Contingent Cash Payments of Up to $14 Million, Royalties, Warrants, and Other Possible Consideration.

Business Editors/Health & Medical Writers

PURCHASE, N.Y.--(BW HealthWire)--August 3, 2000

AMBI Inc. (Nasdaq: AMBI) today announced that it licensed rights to its nisin and lysostaphin antibacterial technologies for development and marketing of new drugs for human uses to Biosynexus Inc. of Rockville, MD. Biosynexus develops products for the prevention and treatment of serious bacterial infections.

Terms of the agreement include: (1) The immediate payment to AMBI of $1.4 million; (2) Future payments to AMBI of up to $14 million, contingent upon the achievement by Biosynexus of certain milestones; (3) Royalties to AMBI upon commercialization of human drug products from these technologies; (4) Warrants to AMBI for the purchase of shares of Biosynexus; and (5) Potential other consideration contingent on future transactions between Biosynexus and third parties that relate to nisin or lysostaphin.

Fredric D. Price, AMBI's president and chief executive officer, said, "When we made the strategic decision several years ago to discontinue development of nisin and lysostaphin as drugs for both animal and human uses, it was based on our belief that other organizations that were focused in the area of antibacterial drug development could bring the appropriate resources to bear on these promising drug candidates. AMBI could then concentrate on its core competencies in proprietary nutrition products and avoid further expenditure in biotechnology research and development. With these Biosynexus transactions, we have built on our past investment in this technology and provided AMBI shareholders with the potential for substantial returns in the future without the associated expenses and risks.

"We are pleased to be licensing our technology to the exceptional team at Biosynexus, which is led by Gerald W. Fischer, MD, president and chief executive officer. Dr. Fischer has more than 25 years of clinical infectious disease experience, and 12 years of biotech managerial experience. He has published numerous articles in peer-reviewed journals and has been asked to speak around the world on the growing problem of hospital acquired infections and their possible solutions."

Dr. Fischer said, "Obtaining the rights to lysostaphin and nisin marks an important milestone for Biosynexus. These exciting new products significantly augment our antibody platform and fit within our overall strategy for the prevention and treatment of infections caused by antibiotic resistant bacteria."

The Biosynexus agreements essentially mark the end of AMBI's tenure as a biotechnology company. AMBI previously entered into agreements with the ImmuCell Corporation (Nasdaq: ICCC) that were announced in January and April 2000 regarding the licensing of AMBI's biotech products for use in animals.

Commenting on the completed transition out of biotechnology, Mr. Price said, "It is appropriate at this time to acknowledge the extensive contribution that was made by David Guttmann, who founded AMBI in 1983 and steered it in its development stage, and by the many scientists who worked diligently and inventively for more than fifteen years on the nisin and lysostaphin technologies. They can feel rightfully proud of their achievements and know that their efforts were instrumental in creating the value that enabled AMBI to enter into the agreements with Biosynexus and ImmuCell."

AMBI develops and markets proprietary nutrition products.

This press release may contain certain forward-looking statements. The words "believe," "expect," "anticipate" and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based largely on the company's current expectations and are subject to a number of risks and uncertainties, including without limitation: the effect of the expiration of patents; regulatory issues; uncertainty in the outcomes of clinical trials; changes in external market factors; changes in the company's business or growth strategy or an inability to execute its strategy due to changes in its industry or the economy generally; the emergence of new or growing competitors; various other competitive factors; and other risks and uncertainties indicated from time to time in the company's filings with the Securities and Exchange Commission, including its Registration Statement on Form S-3, the Prospectus dated April 25, 2000, and its Form 10-K for the year ended June 30, 1999. Actual results could differ materially from the results referred to in the forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the results referred to in the forward-looking statements contained in this press release will in fact occur. Additionally, the company makes no commitment to disclose any revisions to forward-looking statements, or any facts, events or circumstances after the date hereof that may bear upon forward-looking statements.