Anika Therapeutics Enters Into New Supply Agreement With Bausch & Lomb.

Business Editors and Health/Medical Writers

WOBURN, Mass.--(BW HealthWire)--Aug. 2, 2000

Anika Therapeutics, Inc. (NASDAQ:ANIK) today announced it has entered into a new supply agreement with Bausch & Lomb Surgical, a unit of Bausch & Lomb Incorporated (NYSE:BOL). Under the terms of the agreement, Anika becomes Bausch & Lomb's exclusive provider of Amvisc(R) and Amvisc(R) Plus, ophthalmic viscoelastic products, in the U.S. and international markets where approved, effective January 1, 2001.

The new agreement extends to December 31, 2007, superseding an existing supply contract with Bausch & Lomb that was set to expire December 31, 2001. It is subject to earlier termination and/or reversion to a non-exclusive basis under certain circumstances. The new agreement lifts contractual restrictions on Anika sales of certain ophthalmic products to other companies subject to payment of royalties by Anika. In exchange, Anika has agreed to a reduction in unit selling prices effective retroactively to April 1, 2000. At least for the remainder of the current fiscal year, the reduction in unit prices is expected to result in a decrease in company revenue from Bausch & Lomb and gross margin.

"We are delighted with Bausch & Lomb's support and it's decision to select Anika as its exclusive, worldwide provider for these key products," said J. Melville Engle, chairman, president and chief executive officer. "Bausch & Lomb has been our largest customer and this long-term supply agreement is an important accomplishment for Anika."

Hakan S. Edstrom, vice president and president/surgical division of Bausch & Lomb, said, "Anika Therapeutics has been a reliable and responsive business partner to Bausch & Lomb Surgical and has supplied our Amvisc(R) and Amvisc(R) Plus products for many years."

About Anika Therapeutics

Anika Therapeutics, Inc. (www.anikatherapeutics.com) develops, manufactures and commercializes therapeutic products and devices intended to promote the repair, 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. In addition to ORTHOVISC(R), a treatment for osteoarthritis of the knee (not approved for sale in the U.S.), Anika markets HYVISC(R) in the U.S. for the treatment of equine osteoarthritis through Boehringer Ingelheim Vetmedica, Inc. and manufactures Amvisc(R) and Amvisc(R) Plus, HA viscoelastic products for ophthalmic surgery, for Bausch & Lomb Surgical. Therapies currently under development include INCERT(R), a family of HA products designed to prevent post-surgical adhesions. Anika is also collaborating with Orquest, Inc. to manufacture OSSIGEL(R), an injectable formulation of basic fibroblast growth factor combined with HA designed to accelerate the healing of bone fractures, which is also under development.

The statements made in this press release which are not statements of historical fact 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. Forward-looking statements involve known and unknown risks, uncertainties and other factors. The words "believe," "will," "would," "expect," "anticipate," "intend," "estimate" and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. In particular, the statement that the new agreement extends to December 31, 2007 is a forward-looking statement. Under certain circumstances, (i) Bausch & Lomb Surgical may have the right to terminate the agreement and/or (ii) the agreement may revert to a non-exclusive basis; in each case, and the Company, cannot make any assurances such circumstances will not occur. The Company's actual results could differ materially from any anticipated future results, performance or achievements described in the forward-looking statements as a result of a number of factors, which include the results of its research and development efforts and timing of regulatory approval. There can be no assurances that the Company will achieve incremental sales of its ophthalmic products to Bausch & Lomb Surgical and/or other companies sufficient to offset the effects of the price reduction to Bausch & Lomb Surgical. Moreover, there can be no assurances that the Company's investments in the clinical research and product development in OSSIGEL(R) and INCERT(R) will lead to viable products or revenue growth. Certain other factors that might cause the Company's actual results to differ materially from those in the forward-looking statements include those set forth under the headings "Business," "Risk Factors and Certain Factors Affecting Future Operating Results" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the year ended December 31, 1999, as well as those described in the Company's other SEC filings.