Anika Therapeutics Announces Launch of ORTHOVISC in Israel.

WOBURN, Mass.--(BW HealthWire)--Feb. 3, 1999--Anika Therapeutics, Inc. (Nasdaq:ANIK) today announced it has signed an exclusive 10-year distribution agreement with Rafa Laboratories Ltd., a leading Israeli pharmaceutical company principally owned by Purdue Frederick Group, to market, sell and distribute ORTHOVISC(R), a treatment for osteoarthritis of the knee, in Israel. Recently, Rafa Laboratories launched ORTHOVISC at the Annual Meeting of the Israeli Orthopedic Association and The 8th Annual International Seminar on the Treatment of Rheumatic Diseases.

"We received an enthusiastic reception for ORTHOVISC at the meetings," said Rafa Laboratories managing director Shmaryahu Levin. "We are delighted to be working with Anika and are very pleased with initial physician reaction to the product."

Noted Anika president and chief executive officer, J. Melville Engle, "We are pleased to have entered into this distribution partnership with Rafa. The company has a strong market share in Israel in non-steroidal anti-inflammatory drugs, and ORTHOVISC is an excellent complement to its product line."

A high-molecular weight, highly-purified, naturally-derived form of hyaluronic acid (HA), ORTHOVISC is designed to emulate the viscoelastic and cushioning properties of natural HA found in the synovial fluid of healthy joints. ORTHOVISC coats, lubricates and provides shock absorption protection to joint tissues after being injected into the joint space three times over a two-week period.

ORTHOVISC is currently approved for sale and is being sold in Europe, Canada, Turkey and Israel. Anika has a multi-year, exclusive agreement with the Zimmer, Inc. division of Bristol-Myers Squibb Company, for marketing and distributing ORTHOVISC in Canada, Europe, Latin America, the Pacific Rim, China and the United States. Anika also has marketing and distribution agreements for ORTHOVISC with Grupo Ferrer Internacional, S.A. for Spain and Portugal and Biomeks Pharmaceuticals for Turkey.

Rafa Laboratories is a leading Israeli pharmaceutical company that manufactures and markets a variety of pharmaceuticals for the treatment of chronic and severe pain, including the non-steroidal anti-inflammatory Cox-2 inhibitor, Mesulid(R).

Anika Therapeutics, Inc. (www.anikatherapeutics.com) develops, manufactures and commercializes therapeutic products and devices intended to promote the protection and healing of bone, cartilage and soft tissue. These products are based on hyaluronic acid (HA), a naturally occurring biocompatible polymer found throughout the body. Anika's currently marketed products consist of ORTHOVISC for the treatment of osteoarthritis in humans and HYVISC(R) for the treatment of equine osteoarthritis. Anika also manufactures AMVISC(R) and AMVISC Plus(R), HA products used as viscoelastic supplements in ophthalmic surgery, for Bausch & Lomb Surgical. Therapies currently under development include INCERT(R), an HA product designed to prevent post-surgical adhesions, and HA oligosaccharides for the treatment of cancer. Anika is also collaborating with Orquest, Inc., to manufacture OSSIGEL(TM) , an injectable formulation of basic fibroblast growth factor (bFGF) combined with HA designed to accelerate the healing of bone fractures.

The statements made in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company's actual results could differ materially from those set forth in the forward-looking statements as a result of a number of factors. Certain factors that might cause the Company's actual results to differ materially from those set forth in the forward-looking statements include RAFA Laboratories' ability to successfully market and physician acceptance of ORTHOVISC in Israel as well as those factors set forth under the heading "Risk Factors" in the Company's 10-KSB filed with the Securities and Exchange Commission on March 31, 1998 as well as those listed in the Company's other SEC filings.