CollaGenex Pharmaceuticals Announces Granting of Final Marketing Authorizations for Periostat in the Netherlands and Portugal.

Business Editors

CollaGenex Pharmaceuticals, Inc. (Nasdaq:CGPI) today announced that it has received the final Marketing Authorizations for its lead product, Periostat(R) (doxycycline 20mg tablets), from the Ministries of Health in the Netherlands and Portugal.

The company previously announced the granting of provisional Marketing Authorizations in the Netherlands and Portugal, which were gained under the first round of the European Mutual Recognition Procedure.

Periostat tablets were approved by the U.K. MCA in February 2001 and by the U.S. FDA in April 2001. Both the Netherlands and Portugal will be supplied product by CollaGenex International Limited in the U.K.

"The granting of these final Marketing Authorizations in countries of the European Union are pivotal events in the globalization of Periostat," said Brian M. Gallagher, PhD, chairman, president and chief executive officer of CollaGenex. "In Portugal, our partner is the Portuguese affiliate of our Spanish partner, ISDIN S.A. ISDIN is a joint venture between the Spanish pharmaceutical company Dr. Esteve S.A. and the Spanish personal and beauty care products company, Antonio Puig S.A. We are currently in discussion with potential partners in the Netherlands".

Nuno de Francisco, International Manager of ISDIN, said, "The approval of Periostat in Portugal significantly strengthens ISDIN's presence in this market and we are looking forward to launching the product in the third quarter through our dedicated 6-person dental sales force".

Periostat is an oral adjunctive therapy to scaling and root planing in the treatment of adult periodontitis, a condition that affects about 12-15% of the adult population in most countries.

With increasing life expectancy and a decrease in tooth loss due to caries (tooth decay), more people are at risk of developing periodontitis, resulting in the increasing need for new therapies to treat this chronic and yet unpredictable disease.

Periostat is the first oral adjunctive therapy proven in clinical trials to suppress the tissue-destructive enzymes that the body produces in response to the bacterial infection, thereby helping to prevent the breakdown of gum tissue.

CollaGenex Pharmaceuticals, Inc. is a specialty pharmaceutical company currently focused on providing innovative medical therapies to the dental and dermatology markets in the United States and internationally.

Research has shown that the enzyme suppression technology underlying Periostat may also be applicable to other diseases involving inflammation and/or destruction of the body's connective tissues, including acne, rosacea and blepharitis, among others.

CollaGenex is further developing Periostat as well as a series of novel, proprietary compounds known as IMPACS (Inhibitors of Multiple Proteases and Cytokines) to address these and other applications, such as cancer (Metastat(R)).

In addition, CollaGenex has licensed the Restoraderm(TM) technology, a unique, proprietary dermal drug delivery system, in order to develop a range of topical dermatological products with enhanced pharmacologic and cosmetic properties.

To receive additional information on the Company, please visit our Web site at www.collagenex.com.

This press 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 that 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 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 U.S. Securities and Exchange Commission.

Periostat(R), Metastat(R), IMPACS(R) and Restoraderm(TM) are trademarks of CollaGenex Pharmaceuticals, Inc.

CollaGenex(R), Periostat(R) and Restoraderm(TM) are trademarks of CollaGenex International Limited.