Applied Microbiology reports progress in development of a possible treatment for peptic ulcer disease; study done in collaboration with Astra Merck on antimicrobial compound being tested to eradicate Helicobacter pylori in the stomach.

Microbiology Inc. (NASDAQ: AMBI) today reported progress in the development of an antimicrobial therapy for peptic ulcer disease.

AMBI's antimicrobial peptide, nisin, successfully eradicated the bacterial strain Helicobacter felis, a related bacterium to Helicobacter pylori (H. pylori) from the stomachs of laboratory animals. This study, performed by an independent investigator at a leading academic center in the US, was conducted in 50 mice as part of ongoing trials in animals.

Commenting on the results, Peter Blackburn, PhD, AMBI's executive vice president, Scientific Affairs said, "The results of this study and other laboratory experiments suggest that nisin has the potential to be an efficacious, locally acting therapy with minimal side effects. Recently completed safety studies performed by AMBI support the use of nisin at 10 to 100 times the dose likely to be used in humans. Upon completion of ongoing safety studies, AMBI and Astra Merck expect to conduct trials in humans."

Conventional treatment of peptic ulcer disease with drugs that block acid secretion alleviates the symptoms of ulcers but fails to address the cause. H. pylori, a bacterium that colonizes the stomach mucosa, is now widely believed to be responsible for most peptic ulcer disease. The National Institutes of Health Consensus Panel on H. pylori concluded that ulcer patients with H. pylori infection require treatment with antimicrobial agents in addition to anti-secretory drugs, whether on first presentation with the illness or on recurrence. Eradication of H. pylori by antibiotic therapy has been shown to result in up to 90% cure rates in patients with previously recurrent peptic ulcer disease. Triple therapy with bismuth, metronidazole, and tetracycline is the current standard therapy, but is cumbersome and is associated with significant side effects. As a result, patient compliance is poor. Conventional antibiotics adversely affect the normal bacteria in the gut and this often results in side effects such as diarrhea and other gastrointestinal distress.

Importantly, bacterial resistance to metronidazole and other antibiotics has been reported to be increasing. However, bacterial resistance to nisin has not been a problem and it is believed that this will continue to be the case because of nisin's unique mechanism of action.

Preliminary results in this nisin development program are encouraging. However, it is important to note that the development of nisin as a therapeutic agent for ulcer and other indications can be a long, difficult, and expensive process. Notwithstanding the favorable outcomes reported herein, there can be no assurance that a nisin-based product will be approved by the FDA or its regulatory equivalent in a foreign country.

Astra Merck Inc., a leader in the anti-ulcer and anti-secretory market, has the exclusive rights in the US to develop and market AMBI's proprietary nisin compound in the field of ulcer treatment. Outside of the US, AMBI is seeking a partner with strong development, registration, and marketing capabilities in the major countries of the world.

Applied Microbiology sells Food Ingredients in more than 40 countries and is developing Special Dietary Foods and Pharmaceuticals. Its headquarters and pharmaceutical research activities are located in New York and it has food research as well as pharmaceutical and food manufacturing facilities in the United Kingdom.

CONTACT: Applied Microbiology Inc.

Peter Blackburn, 914/345-6805

or

Emer Leahy, 914/345-6809