CORTECS INTERNATIONAL AND EXOCELL SIGN FURTHER DIABETES COLLABORATION.

LONDON--(BUSINESS WIRE)--July 2, 1996--Cortecs International (NASDAQ:DLVRY / LSE:COR / ASX:CRI) and Exocell have achieved the first milestone in their collaboration to produce a point-of-care test for glycated proteins to improve management of diabetes. Initial development work carried out at Cortecs' R&D facility at Deeside, North Wales has established the feasibility of combining technologies to produce rapid tests to monitor the medium and long-term control of diabetes.

Under the agreement signed in June 1995, the technologies of the two companies are being combined to produce two point-of-care rapid diagnostic kits that can measure glycated proteins in diabetes sufferers and provide an accurate result/diagnosis within a normal 15 minute consultation in the doctor's surgery. The kits are planned to be small, self-contained and capable of being used without the need of special training or personnel or any additional apparatus. The purpose of this collaboration therefore, is to produce point-of-care rapid tests which will enable the physician to make on the spot decisions without delay.

One of the problems for a doctor monitoring the control of diabetes is that simple tests performed at the clinic only give a snapshot of control at the time of attendance. Laboratory tests, such as for glycated albumin and glycated haemoglobin give information on how well the disease has been controlled during the previous one month and three months respectively. At present no simple inexpensive point-of-care test for these glycates exists. Blood samples are sent to a laboratory to produce a result some hours or days later. The physician is thus unable to give advice and to take remedial action during the consultation.

The new agreement aims to convert Exocell's third glycated protein laboratory test which provides information on the degree of control during the previous 7 days, into a doctor's office test, taking five minutes.

Estimations of diabetes prevalence around the world have more than tripled since the mid-1980's. In 1985 WHO estimated that 30 million people around the world were afflicted. By 1989, the figure has risen to 50 million. In 1991 WHO stated that "an apparent epidemic of diabetes has occurred - or is occurring - in adult people throughout the world" and the figure is now estimated to be 100 million. The cost of managing diabetes has risen sharply and can take up to as much as 10% of national health budgets. Diabetes is considered the third most expensive disease state in man behind cancer and heart disease, costing the US over $90 billion annually. The complications of diabetes relate substantially to poor control.

Commenting on the announcement, Dr. Michael Flynn, President of Cortecs and head of its research and development, said: "We see this third test as completing the range. Success in producing rapid test kits to monitor the long-term control of diabetes will be an important step in the evolving objectives of Total Disease Management to anticipate disease, reduce costs of diagnosis and monitoring and recognizing when control is not adequate."

Note to Editors: Exocell has expertise in the monitoring and treatment of diabetes, with particular emphasis on the prevention of the long-term complications of this disease. Complimenting its therapeutic development program. Exocell has developed a number of FDA-Approved and pending diagnostic products including:

ALBUWELL and DIALBUMIN - to assess diabetic kidney damage GLYCABEN - to assess recent blood glucose control GLYCACOR - to assess cardiovascular risk APO B - to assess LDL Cholesterol

Cortecs is a British-based company quoted on the London Stock Exchange, the Australian Stock Exchange and on NASDAQ. The Company specializes in the development of new pharmaceutical delivery systems and point-of-care rapid diagnostics which provide the opportunity to advance the management of serious diseases such as:

OSTEOPOROSIS Oral Calcitonin - an oral therapy for the prevention of bone breakdown. In Phase II.

Osteosal - a rapid doctors' office test in collaboration with Osteometer to detect increased bone breakdown indicating the risk of the disease osteoporosis and also to monitor the adequacy of therapy. In development.

HELICOBACTER PYLORI Helisal - a rapid doctors' office whole blood test for the detection of Helicobacter pylori in the market and a rapid saliva test in development.

Oral Therapeutic Vaccine in development to stimulate immunity.

Oral Therapeutic in research to improve eradication results.

DIABETES Oral Insulin - human tests planned in 1996.

Glycosal - a rapid doctors' office test in collaboration with Exocell to assist in the management and identification of diabetics. In development.

CYSTIC FIBROSIS Pseudostat - oral therapeutic antigens to treat and prevent lung infection with Pseudomonas aeruginosa. Now entering Phase II trials.

INFLUENZA Flustat - an oral vaccine against influenza. Entering human trials in 1996.

THRUSH Moniliastat - an oral therapeutic vaccine against vaginal thrush. Enters human trials in 1996.

DIARRHOEA Adept - an oral system to treat diarrhoea without antibiotics. Entering Phase II trials.

MALE HORMONE DEFICIENCY Halo Testosterone - an oral male hormone replacement therapy in development to treat male hypogonadism. Entering human trials in 1996.

Cortecs also markets a range of ethical and OTC medicines and diagnostic products.

NOTE TO EDITORS: Press releases and other Cortecs International Limited information are available on the Cortecs International Limited web site: http://www.cortecs.com.

CONTACT: Cortecs International

Dr. Michael Flynn, 011 44 181 568-7071

or

Kehoe, White, Savage & Co., Inc.

John P. Kehoe/Van Negris, 212/888-1616

or

Buchanan Communications

Zena Bates, 011 44 171 489-1441

or

Exocell, Inc.

Margot Cohen, 215/222-5515