Cortech Arbitration With Ono Pharmaceuticals Concludes.

Business Editors

BEDMINSTER, N.J.--(BUSINESS WIRE)--Aug. 14, 2002

CORTECH, INC. (Nasdaq:CRTQ) announced today that its arbitration against Ono Pharmaceutical Co., Ltd ("Ono"), a company that licenses certain of Cortech's technology relating to neutrophil elastase inhibitors, has concluded, resolving any questions concerning the ownership of Cortech's intellectual property.

Ono and Cortech are parties to an agreement under which Ono paid for the right to use Cortech's intellectual property for a term of years, now expired, to develop compounds for the amelioration of Chronic Obstructive Pulmonary Disorder, referred to as " COPD." During the term of the agreement, Ono had designated ONO-6818 as a "Developed Compound," thereby giving Ono exclusive rights to this compound. In the arbitration, among other things, Ono argued that it had the right to name 42 other compounds as "Developed Compounds" giving it the same rights with respect to these compounds as it had with respect to ONO-6818. Cortech argued that Ono was entitled to designate only one of the 42 compounds as a back-up to Ono-6818. The arbitration panel concurred with Cortech and provided Ono with 20 days to name one compound as the back-up.

Ono also argued that 15 other compounds were "Improved Compounds" to which Ono was entitled to exclusive rights for oral uses. The Arbitration Panel determined that Ono had these exclusive rights. However, with respect to non-oral uses of these 15 and other "Improved Compounds" that may be developed in the future, the Panel agreed with Cortech that Cortech and Ono share non-exclusive rights throughout the world, but that Ono may develop these compounds only to the extent such development does not infringe any Cortech patent.

Cortech's Chairman and CEO, Paul Koether, stated: "We are pleased with the findings of the arbitration panel in that Ono's rights to compounds derived from Cortech's intellectual property and library of compounds are limited to, at most, 17 specifically identified compounds and their isomers and racemates. We are now in a good position to exploit Cortech's intellectual property, including its library of compounds, unencumbered by any lingering questions as to its ownership."

Cortech does not know whether Ono intends to appeal the decision of the arbitration panel.

Cortech has 3,623,380 shares of common stock outstanding.

This release contains forward-looking statements which may involve known and unknown risks, uncertainties and other factors that may cause Cortech's actual results and performance in future periods to be materially different from any future results or performance suggested by these statements. Cortech cautions investors not to place undue reliance on forward-looking statements, which speak only to management's expectations on this date.