Columbia Discusses Renewed Business Outlook and Pipeline at 2001 Annual Shareholders Meeting.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 14, 2001

Columbia Laboratories Inc. (AMEX:COB) president and chief executive officer Fred Wilkinson addressed the company's shareholders today at its 2001 annual meeting. Wilkinson discussed the refocusing of the company's business plan and reviewed new management appointments and financial results for the first quarter of 2001. During his presentation Wilkinson also provided an update on the company's progress to revalidate Crinone for re-launch; commented on the company's product development efforts; and reviewed its outlook.

"Since joining the company in April, my goal has been to refocus the company, prioritize the exciting research and development projects in the pipeline and maximize the return from each of the assets currently within this organization," Wilkinson said at the beginning of the meeting.

Wilkinson continued, "Our core business strategy is to develop innovative pharmaceutical products that address female healthcare and endocrinology needs. Columbia's strength is based on its proprietary bioadhesive delivery system (BDS) technology where we are developing products that address these important markets and will look to seek new opportunities as appropriate."

Re-focused business strategy / Update of Drug Development Programs

In addressing the company's shareholders, Wilkinson focused on his initiatives to re-define the company's business strategy since joining the company in April 2001. He outlined a three-pronged strategy: 1) maximizing the commercial opportunity of currently marketed products with a specific focus on the U.S. market; 2) prioritization and proper execution of the near-term research & development projects; 3) validation of the company's technology for delivering peptides. Finally, he noted that the company's commercialization strategy would be to establish a sales and marketing function in the U.S. with the ultimate goal of building a fully integrated pharmaceutical company.

"Columbia has an exciting portfolio of products," stated Wilkinson. "With more appropriate market positioning of our key products and the expansion of partnering opportunities, I believe that we can significantly accelerate commercial revenue and earnings potential. We will also continue to seek marketing partners for our OTC products to maximize their prospects.

"Regarding our pipeline, we have undertaken a rigorous analysis of all the projects and are in the process of prioritizing our total program for non-peptide products over the next two to three years. Clearly, the testosterone buccal tablet project is our number one priority, and our goal is to file the NDA in the first quarter of 2002 for hypogonadism in men. With both the European and U.S. phase III trials nearing completion, we are on track for meeting this deadline. Additional important projects under evaluation are Crinone vaginal tablet, Crinone 4% for HRT, testosterone buccal tablet for general testosterone deficiencies in men, testosterone buccal tablet for HRT in women and terbutaline vaginal tablet for dysmenorhea and endometriosis.

"The strategy behind the peptide program is to validate the delivery system with desmopressin and then re-validate it using two additional small chain peptides. Our goal is to clearly prove and define the opportunity for the BDS technology to deliver peptides in humans. Results from this new plan should be available during the summer."

Crinone

Wilkinson indicated that Columbia had recently completed initial manufacturing of Crinone under the revalidation protocol and is in the process of finishing its investigational report. Management will continue to work closely with Serono on a re-launch program geared toward reintroduction of the product to the market in the third quarter of 2001.

"Columbia will continue to work closely with Serono on its current marketing relationship as well as expand marketing activities to areas not currently addressed by them. We also plan to seek additional indications for Crinone to expand its usage and sales potential," stated Wilkinson.

Management Appointments

Separately, the company announced the appointment of Robert S. Mills as Senior Vice President of Operations. From 1999 to the present, Mr. Mills served as Senior Vice President, manufacturing operations at Watson Pharmaceuticals, Inc., a U.S. pharmaceutical company, where he directed the manufacturing functions resulting from the Watson Schein merger. Bob comes to Columbia with twenty-six years of experience in pharmaceutical manufacturing, operations and quality assurance at Schein, Alpharma and Aventis.

Wilkinson said, "Bob's background will be important to Columbia as we redefine our operational initiatives with a focus towards the U.S. and seek to maximize the products in our development pipeline. His successful track record of strategic and business planning skills has enabled him to maximize the operational capacity of pharmaceutical manufacturing facilities."

Wilkinson also indicated that the company would seek to add personnel in regulatory and clinical affairs.

Formal Business

In the formal business segment of the meeting, Columbia's shareholders ratified the selection of Goldstein Golub Kessler LLP as the company's independent auditors. The company also elected ten directors of which two are newly elected including Dr. Max Link and John Gildea to members of the 2001 Board of Directors. Dr. Link is a world-renowned leader in the pharmaceutical industry. Dr. Link is Chairman of Sulzer Medica Ltd. and a board member of several prominent U.S. and European based pharmaceutical companies, including Alexion Pharmaceuticals, Inc., Cell Therapeutics, Inc., Human Genome Sciences, Inc. and Protein Design Laboratories, Inc. and previously was Chief Executive Officer and Chairman of the Board of Sandoz Pharma AG. Mr. Gildea, a Managing Director and Principal of Gildea Management Company and J O Hambro Capital Management (America) LLC, has been engaged in various aspects of investing and raising capital in public securities for over twenty-eight years. Mr. Gildea sits on the boards of Gentek, Inc. and Konover Property Trust, Inc.

Columbia Laboratories, Inc. is a U.S.-based international pharmaceutical company dedicated to research and development of women's health care products, including those intended to treat infertility, dysmenorrhea, endometriosis, and hormonal deficiencies. Columbia is also developing hormonal products for men and a buccal delivery system for peptides. Columbia's products primarily utilize the company's patented bioadhesive delivery technology.

This press release contains statements which constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the intent, belief or current expectations of the company and its management team. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements. Such risks and uncertainties include, among other things, successful outcomes of clinical studies, competitive economic and regulatory factors in the pharmaceutical and health care industry, general economic conditions and other risks and uncertainties that may be detailed, from time-to-time, in Columbia's reports filed with the Securities and Exchange Commission.