Bausch & Lomb confirms global alliance with InSite Vision.

ROCHESTER, N.Y.--(BUSINESS WIRE)--July 23, 1996--Bausch & Lomb (NYSE: BOL) today announced a global alliance with InSite Vision Incorporated (NASDAQ: INSV). As part of the alliance, Bausch & Lomb will co-develop and manufacture certain glaucoma products based on InSite's proprietary DuraSite(R) ophthalmic drug delivery technology. The alliance also grants Bausch & Lomb exclusive worldwide marketing rights for the jointly developed glaucoma products.

DuraSite is a patented eyedrop-based drug delivery system that has been tested in three Phase III development programs. DuraSite products allow for the gradual release of drugs into the eye over a period of hours. Bausch & Lomb and InSite will apply this technology to develop a once-a-day ophthalmic beta-blocker product to compete in a segment that is anticipated to approach $100 million by the year 2000.

The agreement also includes the exclusive worldwide marketing rights to InSite Vision's PilaSite(R), pilocarpine twice-a-day formulation. The medication, used to reduce elevated pressure in the eyes, will also add to Bausch & Lomb's glaucoma product offering.

Under the terms of the agreement, Bausch & Lomb will make a $2 million equity investment in InSite Vision. Bausch & Lomb will also invest up to $2 million in development funding for the first glaucoma product, subject to reaching specific milestones. The company will pay a royalty to InSite Vision and will manufacture other InSite products.

The addition of the InSite development programs further strengthens Bausch & Lomb s proprietary ophthalmic product pipeline. Last year Bausch & Lomb signed an agreement with Pharmos Corporation which gave Bausch & Lomb the U.S. marketing rights to Lotemax(TM), an anti-inflammatory product, and two line extensions. Phase III clinicals were recently completed on the first Lotemax extension product, an ophthalmic allergy drug. An NDA submission for the product is anticipated by early 1997. The two companies recently signed a letter of intent extending Bausch & Lomb's rights to market the products outside of the U.S.

InSite Vision is an ophthalmic pharmaceutical company located in Alameda, California. The company is focused on the development of improved and new eye medications, based on its proprietary DuraSite eyedrop-based delivery system.

Bausch & Lomb Pharmaceuticals Inc., a subsidiary located in Tampa, Florida, manufactures and markets a broad line of ophthalmic generic products, and a growing line of proprietary products, including OptiPranolol(R) (metipranolol HCL 0.3% ophthalmic solution), a beta-blocker for lowering intraocular pressure. The completed alliance represents a significant investment in the future growth of Bausch & Lomb Pharmaceuticals proprietary product portfolio.

Bausch & Lomb Incorporated is a global vision care company dedicated to helping consumers see, look and feel better through innovative technology and design. Its core businesses include soft and rigid gas permeable contact lenses, lens-care products, premium sunglasses and ophthalmic pharmaceutical products. The company is advantaged with some of the most respected brands in the world starting with its name, Bausch & Lomb(R), and including Ray-Ban(R), Arnette(TM), Curel(R), SofLens66(TM), Boston(R), and ReNu(R). Founded in 1853 in Rochester, N.Y., where it continues to have its headquarters, the company has annual revenues of approximately $2 billion and employs approximately 13,000 people in 35 countries. Bausch & Lomb products are available in more than 100 countries around the world.

CONTACT:

Bausch & Lomb InSite Vision

Holly Echols - B&L Kumar Chandrasekaran, Ph.D.

716-338-8064 office 510-865-8800

716-473-7104 home

800-405-5314 pager

or

Barbara Kelley

716-338-5386 office

716-621-7141 home

or

Investor Relations Contact:

Angela Panzarella

716/338-6025 office

716/594-2779 home