Biotechnology Company With Two Potential Blockbuster Drugs Approved for Phase III Human Clinical Trials Announces Major Increase in Revenues.

Business Editors & Health/Medical Writers

MONTGOMERY, Texas--(BUSINESS WIRE)--Sept. 30, 2002

Endovasc Ltd. Inc. (OTCBB:ENVC) announced today it has filed its annual report (10K) with the Securities and Exchange Commission. According to the annual report, Endovasc's sales revenues increased by 571%, to $671,000, even though the company has not yet entered the main revenue-generating phase of its business model.

Endovasc is the company behind ANGIOGENIX(TM) -- the revolutionary new treatment that has shown to recruit the body's own stem cells that help grow new heart vessels to relieve chest pain and improve heart function -- and Liprostin(tm), a liposomal prostaglandin-based treatment that studies suggest will prevent restenosis (re-blockage of arteries), increase circulation and reduce leg pain due to poor blood flow. Both of these cardiovascular drugs have been approved for final FDA Phase III human clinical trials. This makes Endovasc the only OTCBB-listed biotech company with two potential blockbuster drugs approved for Phase III trials.

According to the company's 10K filing with the SEC, Endovasc's revenues for the fiscal year ending June 30, 2002 increased to $671,000 from $100,000 for the previous fiscal year. The company's net loss decreased from $2.84 million to $2.4 million, or from $6.90 per share to only $1.34 per share.

"We are very satisfied with our financial performance, as we have not yet entered the revenue-generating phase of our business model. Most of the revenue came from grants and services to others, which we are very proud to have carried out. Biotech is a very research-and-development-intensive industry. Bringing new treatments to market typically requires millions of dollars of available capital and takes several years. We are proud that we have been able to bring two potential major breakthrough drugs from the discovery phase all the way through to Phase III without incurring any significant debt," says David P. Summers, chairman and chief executive officer of Endovasc Ltd. Inc.

Endovasc's business model is based on taking on promising drug candidates at the end of the discovery phase and then conducting a fast-track program for the technical and early clinical development phases, covering Phases I and II of the compound. At that point, Endovasc creates a separate subsidiary for each one of its drugs, spins them off and issues a stock dividend to its existing shareholders of record. This model enables Endovasc to receive licensing revenues from its technologies without incurring additional expense or dilution. The fact that the company has been able to get two potential blockbuster drugs all the way to Phase III trials without incurring any significant debt, in near record time, proves this model shows tremendous potential.

There are several factors that may dramatically increase Endovasc's profitability in the future.

First, upon entering Phase III trials, biotech companies can start making money even though their drugs are not yet on the market. When the first positive results from their human trials start to come in, companies can start selling sub-licensing agreements and rights to their drugs to major pharmaceutical companies. These upfront fees can be significant, from millions to literally billions of dollars. Biotech companies can also sell distribution rights for their products. In Endovasc's case, the upfront fees could be significant because the company's drugs focus on the vast cardiovascular and metabolic markets, accounting for more than $69 billion in sales volume per year -- 25% of the entire pharmaceutical market.

Cardiovascular diseases are the number one cause of death in the western world today. They account for 50% of deaths worldwide, nearly double of those caused by cancer, the second most prevalent cause of death. It is estimated that in the United States alone, the economic cost of cardiovascular diseases is over $250 billion per year.

Secondly, Endovasc has recently created a new subsidiary called Nutraceutical Development Corporation (NDC). The company believes that its ANGIOGENIX(TM)-based nutraceuticals, which combined with high protein complexes, could become blockbuster nonprescription products, producing positive cash flow even sooner than its later stage drugs because they are not subject to the FDA approval process. The current U.S. market size for nutraceuticals is estimated to be approximately $28 billion annually.

Endovasc's products include ANGIOGENIX(TM) -- the revolutionary new treatment that has shown to recruit the body's own stem cells that help grow new heart vessels to relieve chest pain and improve heart function; Liprostin(TM), a liposomal prostaglandin-based treatment that studies suggest will prevent restenosis (re-blockage of arteries), increase circulation and reduce leg pain due to poor blood flow; biodegradable stents; drug-delivery stents; and newly discovered nutraceutical stem cell recruiter, natural products of nature, may accelerate development of muscle mass in subjects who either due to disease or for esthetic reasons wish to add muscle.

Its dietary gamma linoleic acid (GLA) PGE-1 natural precursors, combined with various essential amino acids and omega-3 fatty acids supplements, are targets to weight loss and prostaglandin balance, which may provide a natural reduction of insulin and reduce weight in overweight diabetic women. Endovasc believes that its nutriceutical nicotine-based drinks, fitness bars or capsules (which, according to the company, will contain nicotine levels too low to be habituating or to cause the typical euphoria effects from smoking) combined with high protein complexes could become blockbuster nonprescription products, producing positive cash flow even sooner than its later stage drugs because they are not subject to the FDA approval process.

Endovasc Ltd. Inc., established in 1996, is a biotechnology company focused in the area of cardiovascular disease, pioneering drug delivery technology designed to deliver and release drugs to their intended targets in an efficient and controlled manner. The company's pipeline of products and processes include: Liprostin(TM), ANGIOGENIX(TM), PROStent(TM) stent-coating technology and a biodegradable stent prosthesis.

The foregoing statements are made under the "Safe Harbor" Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements that involve risks and uncertainties that may not be evident at the time of this release. For more information about Endovasc, please visit www.endovasc.com. (Investor questions and requests for materials can be submitted online.)