Chemfab Announces Plans to Explore the Commercialization of Urology Devices.

Business/Technology Editors

MERRIMACK, N.H.--(BUSINESS WIRE)--March 27, 2000

Chemfab Corporation (NYSE:CFA and www.chemfab.com) today announced that it will explore the commercialization of two unique urological products in Europe and will seek a partner in the U.S. for the potential commercialization of these products domestically. The two products use the On-Command(R) catheter technology which was acquired by Chemfab as part of the UroQuest acquisition in December of 1999. The products are disposable intraurethral (inside the urethra) catheters incorporating a proprietary anchoring system and a proprietary patient controlled, magnetically activated valve used to control urine flow. The catheters are intended to be left in place for up to 29 days.

The Company estimates that the European market for the urinary control devices is in excess of $1 billion and that the domestic U.S. market is slightly larger than the European market. The On-Command(R) catheter products are designed to enable persons with either urinary incontinence or urinary retention problems to manage their condition without restricted mobility, medical complications, discomfort and embarrassment generally associated with many of the existing management alternatives. It is estimated that nearly 2 million people in the U.S. suffer from some form of chronic urinary incontinence or retention.

John W. Verbicky, the Company's President and Chief Executive Officer said, "We have completed our initial internal reviews of the On-Command(R) technology. Based upon the market opportunity and the potential benefits and features that the On-Command(R) devices offer those suffering from chronic urinary conditions, we believe it makes sense to seriously explore the commercialization of these products. We will be seeking partners in the urological and medical device markets who may be interested in jointly pursuing FDA approval of the product and can provide access to effective domestic distribution channels." Verbicky added, "The On-Command(R) catheter product has already received the European CE mark which allows the commercialization process to begin in Europe." The Company expects to reach a decision in this area by December of 2000. Chemfab expects the cost impact of this activity over the next 12 months to be minimal.

NOTE: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from those projected or suggested due to certain risks and uncertainties, including any difficulties that may be encountered in the evaluation, requisite to regulatory approval and commercialization of a new medical product. Additional information concerning certain other risks and uncertainties relating to the Company's base business and that of its customers worldwide that could cause actual results to differ materially from those projected or suggested, is contained in the Company's filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or the Company upon request. The forward-looking statements contained herein represent the Company's judgment as of the date of this release, and the Company cautions readers not to place undue reliance on such statements.