Atlantic Pharmaceuticals subsidiary awarded NIH grant for development of promising new cataract removal device.

HALF MOON BAY, Calif.--(BUSINESS WIRE)--May 3, 1996--Atlantic Pharmaceuticals, Inc. (Nasdaq Small Cap: ATLC) today announced that Optex Ophthalmolgics, Inc., a majority-owned subsidiary, has been awarded $100,000 under Phase I of a Small Business Innovation Research (SBIR) Program grant from the National Eye Institute (NEI) division of the National Institutes of Health (NIH).

This funding will be used for further research on Atlantic's cataract removal technology, Catarex(TM).

Cataract formation is among the most common aging disorders. This progressive clouding of an eye's normally clear, crystalline lens degrades visual acuity and eventually requires surgical extraction to restore vision. In the United States, among people over age 60, cataract removal is the most frequently performed surgical procedure. Worldwide, approximately 4 million people undergo cataract surgery each year, and this number is expected to increase as the population ages.

"Catarex(TM) has the potential to offer a significant improvement over existing methods of cataract removal on several levels," said J.D. Lindjord president and chief executive officer of Atlantic. "If approved, this technology could enable a surgeon to remove a cataract in less than 10 minutes through a single, 1-millimeter incision with a proprietary device that uses a directed mechanical energy source. The small incision size means much of the eye is unaffected, which may reduce operative and postoperative trauma, and hasten visual recovery. In addition, Catarex(TM) may uniquely allow the use of advanced liquid polymer lens substitutes currently being developed by a number of companies."

Currently, surgeons extract cataracts through extracapsular cataract extraction (ECCE) or ultrasonic Phacoemulsification (Phaco). These techniques require approximately 30 to 40 minutes for surgery, several days for postoperative recovery, and weeks to months for visual rehabilitation. ECCE is the direct surgical extraction of the entire lens nucleus through an 11-millimeter incision in the eye and a 6-millimeter opening in the eye's inner lens capsule. Following lens removal, a permanent plastic lens is inserted and placed in the remaining portion of the lens capsule. Phaco involves fragmenting the cataract into small pieces using ultrasonic vibrations. To remove the fragmented cataract, the surgeon makes a 3-millimeter to 5-millimeter incision in the eye, removes the front of the lens capsule, then uses an ultrasound device to carve out and remove the lens. While Phaco is less invasive than ECCE, it requires a high level of skill and significant experience to perform properly. Stray ultrasound energy can also result in damage to the cells lining the cornea's inner layer.

Atlantic Pharmaceuticals, based in Half Moon Bay, is a biopharmaceutical company developing pharmaceutical and biomedical products for a variety of therapeutic areas. In addition to Catarex(TM), Atlantic is currently developing novel technologies in the areas of antisense gene therapy, prevention of restenosis following coronary angioplasty, and anti-inflammatory/analgesic drugs.

As with any company developing novel therapeutics, Atlantic may make certain forward-looking statements that relate to future events or future business and financial performance. Such statements can only be predictions and the actual events or results may differ from those discussed. -0- Editor's Notes: This release is available on the Internet at http://www.atlan.com and http://www.noonanrusso.com.

A fact sheet on Atlantic is available via fax through May 17 by calling 212/696-4455 ext. 329 and requesting document number 900.

CONTACT: Atlantic Pharmaceuticals, Inc.

J.D. Lindjord, President and Chief Executive Officer

415/726-1327

e-mail: [e-mail]

or

Noonan/Russo Communications, Inc.

212/696-4455

Rich Tammero (media) ext. 222

Elizabeth Kieff (investor) ext. 216

e-mail: [e-mail]