Altea and Novartis Enter into Clinical Feasibility Agreement for Non-Invasive Delivery of a Recombinant Protein.

Business Editors/Health and Medical Writers

ATLANTA--(BW HealthWire)--April 13, 2000

Altea Development Corp. (Altea) Thursday announced that it has entered into an agreement with Novartis for evaluation of the clinical feasibility of delivery of a recombinant protein utilizing Altea's non-invasive MicroPor(TM) technology.

Altea's patented MicroPor(TM) technology creates microscopic pores in the outermost dead layer of skin cells, opening tiny pathways to the underlying viable tissues.

Altea has demonstrated delivery of physiologically-relevant amounts of peptides and proteins in pilot clinical studies with compounds such as insulin and parathyroid hormone (1-34), and with other macromolecules of greater than 40,000 daltons.

This unique system enables needleless infusion of biotechnology products with delivery profiles that can be tailored as desired for different applications, e.g. a steady infusion of the drug, or a bolus delivery as required.

This technology enables convenient, controllable transdermal delivery of these macromolecular drugs, which is not possible with conventional transdermal systems.

"We are delighted to have entered into this agreement with Novartis," commented Deborah Eppstein, Ph.D., Altea's chairman and chief executive officer. "Novartis is a world leader in the development and commercialization of innovative products and drug delivery systems, including transdermal products.

"Altea's technology now allows biotechnology drugs such as proteins to be conveniently delivered to patients without use of a needle or other invasive methods."

Under the agreement, Altea will evaluate the clinical delivery profile of the recombinant protein provided by Novartis. Upon successful completion of the studies, the parties may negotiate an agreement for the full development and marketing of the product using Altea's MicroPor(TM) technology.

Altea is a privately held company developing the MicroPor(TM) technology for drug delivery applications, including delivery of peptides and proteins, as well as small molecules requiring rapid and on-demand onset of action, such as pain medications.

Its affiliated company, Altea Genomics, is developing applications for vaccine and DNA delivery. The non-invasive monitoring applications of the MicroPor(TM) technology are licensed to SpectRx Inc. (Nasdaq:SPRX), who is developing the glucose monitoring products with Abbott Laboratories (NYSE:ABT).

Note regarding projections and forward-looking statements: Statements in this release that are not purely historical are forward-looking statements within the meaning of the Private Securities Reform Act of 1995, including Altea's beliefs, expectations, hopes, or intentions regarding the future.

All forward-looking statements are made as of the date hereof and are based on information available to Altea as of such date.