CollaGenex Pharmaceuticals, Inc. Signs Distributor Agreements for Periostat for Austria and Switzerland.

Business Editors/Health & Medical Writers

NEWTOWN, Pa.--(BUSINESS WIRE)--June 9, 2000

CollaGenex Pharmaceuticals, Inc. (Nasdaq: CGPI) today announced at the prestigious EuroPerio 3 meeting in Geneva, Switzerland that it had signed agreements for the marketing and distribution of Periostat in Austria and Switzerland.

The agreement for Austria is with Willvonseder & Marchesani Ges.m.b.H. & Co. KG., a Vienna-based company that represents a number of pharmaceutical and dental companies in Austria. Willvonseder & Marchesani has its own dental sales force and a long standing presence in the dental market in Austria.

For the distribution of Periostat in Switzerland, CollaGenex signed an agreement with the Zurich-based company Karr Dental Ltd., a specialist supplier of dental pharmaceutical and other products to the Swiss market. Karr Dental has its own dental sales force and also conducts training courses for periodontists in Switzerland.

"The signing of these agreements for two important European markets closely follows our recently announced agreement with ISDIN S.A. for Spain and Portugal and demonstrates continuing progress towards our corporate goal to maximize the world-wide opportunity for Periostat," said Brian M. Gallagher, chairman, president and chief executive officer of CollaGenex. "Both Austria and Switzerland are countries with very high levels of dental care and awareness and world famous dental universities. We are delighted to be working with such experienced local companies and to use their skills in marketing Periostat in each country."

"Our company is well established with the universities and the dental profession in Austria and we consider the dental products market to be an attractive area," said Dip. Ing. Jorg Marchesani, managing director of Willvonseder & Marchesani. "The addition of Periostat to our product line will enhance our overall offering to the profession and we are looking forward to working closely with CollaGenex to implement their marketing plans." Dr. Hans-Peter Grimm, president and chief executive officer of Karr Dental, said, "As a periodontist working with both patients and the profession on a daily basis, I could immediately see the potential for Periostat in the sophisticated Swiss market. I and my marketing colleagues are delighted to be working with the professional international team at CollaGenex to introduce Periostat to the Swiss market."

Financial details of the agreements were not disclosed. Both companies will pay milestone fees associated with the regulatory approvals of Periostat and will be purchasing the drug from CollaGenex via its wholly owned UK subsidiary, CollaGenex International Limited.

EuroPerio 3 is being held in Geneva from June 8 to 11, 2000, and is the most prestigious scientific event on the European periodontology calendar this year. Attendance of more than 3,500 periodontists are anticipated, with a large number from the United States. Many of the presentations will feature Periostat and the clinical experience gained by U.S. periodontists in everyday practice.

CollaGenex Pharmaceuticals, Inc. is a specialty pharmaceutical company focused on providing innovative medical therapies to the dental market. The company's lead product, Periostat, was approved by the U.S. Food and Drug Administration in September 1998 and by the U.K. Medicines Control Authority in February 2000.

It is the first and only prescription pharmaceutical product to treat periodontal disease by inhibiting the enzymes that destroy periodontal support tissues. Periostat is marketed to the dental community in the United States by CollaGenex through a professional pharmaceutical sales force composed of approximately 135 sales representatives and managers.

Currently, the company's sales force is also marketing VIOXX(R), a Merck & Co. drug that the company promotes for the treatment and relief of acute dental pain, and Denavir(R), a SmithKline Beecham Consumer product for the treatment of cold sores.

Research has shown that the enzyme-suppressing technology underlying Periostat may also be applicable to other diseases involving destruction of the body's connective tissues, including cancer metastases (Metastat(R)) and a broad range of inflammatory diseases.

CollaGenex is developing a series of novel, proprietary compounds known as IMPACS(R) (Inhibitors of Multiple Proteases And Cytokines) to address these applications. The company intends to pursue further research and development of this technology primarily through partnerships with third parties.

For additional information on CollaGenex, please visit the company's website at www.collagenex.com, which is not part of this press release.

This news release contains 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; risks inherent in research and development activities; risks associated with conducting business in a highly regulated environment and uncertainty relating to clinical trials of products under development, all as discussed in the Company's periodic filings with the US Securities and Exchange Commission.

Periostat(R), Metastat(R) and IMPACS(R) are trademarks of CollaGenex Pharmaceuticals, Inc. CollaGenex(R) and Periostat(R) are trademarks of CollaGenex International Limited. VIOXX(R) is a trademark of Merck & Co, Inc. Denavir is a trademark of SmithKline Beecham, Inc.