Anika Therapeutics Reaches Agreement to Settle Securities Class Action Suit.

Business Editors

WOBURN, Mass.--(BUSINESS WIRE)--May 30, 2001

Anika Therapeutics Inc. (Nasdaq:ANIK) today announced it has reached an agreement to settle the consolidated putative securities class action lawsuit pending in the United States District Court for the District of Massachusetts against Anika and certain of its directors and officers, which relates to the company's restatement of financial results for 1998 and the first three quarters of 1999.

The settlement agreement expressly provides that it does not constitute an admission that the defendants have any liability to or acted wrongfully in any way with respect to the plaintiffs, the members of the class, or any other person.

As part of the proposed settlement, Anika will pay a total of $1.25 million into a settlement fund that will, among other things, be used to pay authorized members of the class, which consists of persons who purchased or otherwise acquired Anika common stock between April 15, 1998 and May 30, 2000. The proposed settlement is contingent upon certain events, including certification by the court of the class for purposes of the settlement, final court approval of the settlement after court-approved notice and a settlement hearing, and dismissal of the action with prejudice.

In conjunction with the settlement, Anika expects to record a pre-tax charge in the quarter ending June 30, 2001.

"We are satisfied with the settlement of this matter," said J. Melville Engle, chairman, president and chief executive officer. "We believe that the settlement is in the best interest of Anika. Now that this litigation is behind us, we can focus on our business objectives without the expense and significant distraction of this suit."

The litigation is described in more detail in Anika's filings with the Securities and Exchange Commission, including its Form 10-Q for the quarter ended March 31, 2001.

About Anika Therapeutics

With headquarters in Woburn, Anika Therapeutics (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 United States), Anika markets HYVISC(R) in the United States 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. STAARVISCTMII, an injectable ophthalmic viscoelastic is produced for STAAR Surgical Company. Therapies currently under development include INCERT(R), a family of HA products designed to prevent post-surgical adhesions.

The statements made in this news release that are not statements of historical fact are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve known and unknown risks, uncertainties and other factors. The words "believe," "will," "contingent," "would," "expect," "anticipate," "intend," "estimate," "plan," "designed," and other expressions that are predictions of or indicate future events and trends and that do not constitute historical matters identify forward-looking statements. 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, including but not limited to, the discretion of the court to deny preliminary or final approval of the class action settlement, the ability of class members to opt out of the settlement and/or object to the settlement prior to the court's approval, and other possible contingencies as to whether the settlement will be consummated. 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 Dec. 31, 2000 and the company's quarterly report on Form 10-Q, as well as those described in the company's other news releases and other SEC filings.