Cortecs International Limited proposes new fund raising.

LONDON--(BUSINESS WIRE)--May 24, 1996--Cortecs International Limited (NASDAQ:DLVRY / LSE:COR / ASX:CRI) today announced it is proceeding with a private placement of new ordinary fully paid shares for the purpose of raising additional capital which will also enhance the spread of the Company's global shareholder base. Initial emphasis on marketing has been in Japan, the Far East and now in Europe. The proposed issue is intended to raise approximately 20 million pounds which will require the issue of approximately 5.7 million shares, being approximately 4.3% of the current issued capital of the Company.

The Directors of Cortecs International have the authority to issue up to approximately 12.5 million shares without the necessity to call a meeting of the shareholders of the Company. As the Directors do not propose to issue in excess of this amount of shares, the shareholders of the Company will not be required to vote on the proposed issue.

The Company has two potential therapeutic oral delivery platforms in the areas of large molecule peptides and vaccines as a result of recent announcements of positive Phase II trials for is oral delivery technology for calcitonin used in the treatment of osteoporosis and positive results for its open Phase I/II trials for its oral therapeutic vaccine against Pseudomonas aeruginosa, the organism responsible for 90% of deaths in cystic fibrosis. It is intended that the funds raised are to be primarily applied to bringing forward and developing existing and additional applications of these oral delivery platforms.

The new shares will rank pari passu in all respects with the existing shares in respect of both capital and dividends. An application will be made for quotation of the shares on the Australian and London Stock Exchanges. The proposed date of issue of the shares is expected to in the second week of June 1996.

The shares to be issued have not been and will not be registered under the U.S. Securities Act of 1933 or under the securities laws of any state of the United States and may not be offered or sold in the United States absent such registration or an applicable exemption from such registration requirements.

Cortecs is a British-based company quoted on the London Stock Exchange, the Australian Stock Exchange and on NASDAQ. The Company specializes in the development of new pharmaceutical delivery systems and point-of-care rapid diagnostics. Cortecs also markets a range of ethical and OTC medicines and diagnostic products.

CONTACT: Dr. Michael Flynn

Cortecs International Limited, London

011 44 181 568-7071

or

Mr. Gary Walton

Cortecs International Limited, Perth

011 61 9 481 1314

or

Van Negris

Kehoe, White, Savage & Co., Inc.

[phone]