CollaGenex Appoints Robert C. Black and Stephen A. Kaplan to Board of Directors.

NEWTOWN, Pa.--(BUSINESS WIRE)--Sept. 27, 1999--

CollaGenex Pharmaceuticals, Inc. announced today that Robert C. Black and Stephen A. Kaplan have been elected to the company's board of directors.

Mr. Black recently retired from his position as president of the U.S. Pharmaceuticals Division of AstraZeneca, Inc., one of the five largest pharmaceutical companies in the world. Mr. Kaplan is a principal of Oaktree Capital Management, LLC, the lead investor in the company's recent $20 million Series D Cumulative Convertible Preferred Stock financing.

"I am delighted to welcome these highly talented individuals to our board," said Brian M. Gallagher, PhD, president and chief executive officer of CollaGenex. "Bob Black has 34 years of experience in the pharmaceutical industry, with a strong background in sales and marketing. Steve Kaplan is a seasoned financial executive with considerable experience serving on the boards of companies across a range of industries. Their insights will be invaluable as we work to maximize shareholder value by becoming a premier specialty pharmaceutical company."

Mr. Black retired from AstraZeneca, Inc. on July 1, 1999. He joined AstraZeneca in 1965 as a pharmaceuticals sales representative and held numerous positions of increasing responsibility in sales and marketing prior to becoming president of the Zeneca Pharmaceuticals Division in 1991, a position he held until his retirement.

Among his many notable accomplishments, Mr. Black was responsible for the successful launches of Zestril(R), Diprivan(R) and Accolate(R) as well as the continued growth of Nolvadex(R) into the world's leading breast cancer treatment.

Mr. Kaplan manages the Principal Activities Group at Oaktree Capital Management. Prior to joining Oaktree in 1995, Mr. Kaplan served as a managing director at The Trust Company of the West (TCW), where he was a portfolio manager of The Principal Fund.

Mr. Kaplan holds a Juris Doctor degree from the New York University School of Law and was a partner with the law firm of Gibson, Dunn & Crutcher before joining TCW in 1993.

CollaGenex Pharmaceuticals is a specialty pharmaceutical company focused on providing innovative medical therapies to the dental market. The company's lead product, Periostat(R), was approved by the FDA in September 1998 and is the first and only pharmaceutical to treat periodontal disease by inhibiting the enzymes that destroy periodontal support tissues.

Periostat(R) is marketed to the dental community through a professional sales force comprised of approximately 125 sales representatives and managers.

Currently, the company's dental sales force is also marketing Vioxx(R), a non-steroidal anti-inflammatory drug belonging to the new class of drugs known as COX-2 inhibitors, and Denavir(R), a prescription cold sore medication, under exclusive co-marketing agreements with Merck & Co., Inc. and Smithkline Beecham Consumer Healthcare, respectively.

Research has shown that the enzyme suppression technology underlying Periostat(R) may also be applicable to other diseases involving destruction of the body's connective tissues, including cancer metastasis, osteoporosis, osteoarthritis and wounds. CollaGenex intends to pursue the research and development of these other applications primarily through partnerships with third parties.

To receive additional information on CollaGenex, please visit the Company's web site at www.collagenex.com, which is not part of this press release.

This news release may contain certain forward-looking statements within the meaning of section 21E of the Securities and Exchange Act of 1934, as amended. Investors are cautioned that forward-looking statements involve risks and uncertainties which may affect the Company's business and prospects.

The Company's business of selling marketing and developing pharmaceutical products is subject to a number of significant risks, including risks relating to the implementation of the Company's sales and marketing plans for Periostat(R), risks inherent in research and development activities, risks associated with conducting business in a highly regulated environment, uncertainty relating to clinical trials of products under development, all as discussed in the Company's periodic filings with the U.S. Securities and Exchange Commission.