Allergan and Oculex Enter Into Collaboration for Novel Drug Delivery Technology in the Back-of-the-Eye Ophthalmic Arena.

Business Editors and Health/Medical Writers

IRVINE, Calif. and SUNNYVALE, Calif.--(BW HealthWire)--May 21, 2001

Allergan (NYSE:AGN) and Oculex Pharmaceuticals, Inc. today announced that they have entered into a license and research collaboration agreement to discover, develop and commercialize compounds for ophthalmic use, based on Oculex's proprietary biodegradable (BDD(TM)) and reservoir (RDT(TM)) drug delivery technologies.

Under the terms of the worldwide exclusive collaboration, Allergan and Oculex will work together to develop products for the treatment of serious conditions affecting the retina and the back of the eye. Any jointly developed products will be based on novel Allergan compounds and compounds obtained from third parties utilizing Oculex's proprietary site specific, controlled release drug delivery technologies. As part of the collaboration, Oculex will provide its expertise in polymeric formulation and micro-size manufacturing to support the development of these back-of-the-eye pharmaceutical products. Allergan has the right to nominate an unlimited number of internal and third party compounds during the term of the collaboration. In exchange, Oculex may receive approximately $30 million in the form of initial cash payments, equity investments and development milestones for the lead product based on a novel Allergan compound. Oculex will also receive development funding and royalties on worldwide sales of all future products resulting from the collaboration.

"Oculex's drug delivery technology will provide Allergan with a platform of biodegradable and reservoir delivery technology to provide sustained local delivery of compounds to the eye," said David E.I. Pyott, Allergan's Chairman, Chief Executive Officer and President. "This novel Oculex technology may provide for an important new breakthrough in ophthalmic therapy for new and well established drugs by local delivery to the back of the eye. The latest collaboration between Allergan and Oculex is consistent with our objective to continue expanding our growing ophthalmic franchise through the discovery and development of new and complementary therapeutic approaches to the ophthalmic disorders that have the potential to significantly improve patient care."

"We are proud to become Allergan's partner for developing novel compounds to treat major eye diseases through the application of Oculex drug delivery technology," commented Donald J. Eaton, Oculex's Chairman and Chief Executive Officer. "We believe this is a significant validation of our technology, and this collaboration may address many unmet medical needs for ophthalmology."

Forward-looking Statements

Any of the above statements that refer to Allergan's estimated or anticipated future results, such as the statements of Mr. Pyott and the statements regarding new products which could result from the collaboration, are forward-looking and reflect Allergan's current analysis of existing trends and information. Actual results may differ based on a number of factors including, but not limited to, the timing and uncertainty of the results of research, development and regulatory processes, patents obtained by competitors, the uncertainties associated with manufacturing and introducing new products, and the extent of consumer acceptance of new products. The reader is cautioned not to rely on these forward-looking statements. Allergan disclaims any intent or obligation to update these statements. Additional information concerning these factors can be found in press releases as well as in Allergan's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Certain Factors and Trends Affecting Business" in Allergan's 2000 Form 10-K and Form 10-Q for the quarter ended March 30, 2001. Copies of Allergan press releases and additional information about Allergan are available on the World Wide Web at www.allergan.com, or you can contact the Allergan Investor Relations Department by calling 714-246-4636.

Allergan, headquartered in Irvine, California, is a technology-driven, global healthcare company, providing eye care and specialty pharmaceutical products worldwide. Allergan develops and commercializes products in the eye care pharmaceutical, ophthalmic surgical device, over-the-counter contact lens care, movement disorder and dermatological markets that deliver value to our customers, satisfy unmet medical needs and improve patients' lives.

Oculex Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on the development of novel intraocular pharmaceuticals and delivery systems. It has two drug delivery platform technologies which can provide programmed sustained release of drugs inside the eye. Oculex's biodegradable drug delivery technology (BDD(TM)) is designed to facilitate in-office application of drugs from one week to six months. Oculex's reservoir drug delivery technology (RDT(TM)) is a surgical micro implant designed to deliver drugs over a two to three year period. These technologies can deliver both novel and generic drugs that may enable ophthalmologists to treat many serious eye diseases that are not effectively treated today. Oculex is headquartered in Sunnyvale, California, with additional manufacturing facilities in Singapore. For more information, visit Oculex's web site at http://www.oculex.com.