Cortecs International enters into second R & D Syndication agreement in Australia.

LONDON--(BUSINESS WIRE)--Dec. 12, 1994--Cortecs International (NASDAQ:DLVRY/ASX: CRI/LSE: SEAQ Domestic) announced today that it has arranged a second R & D Syndication agreement in Australia for a total of 1.63 million pounds (Australian $3.25 million) over a three year period.

The proceeds will be used to fund ongoing research for the company's two oral therapeutic antigens as well as a rapid diagnostic test.

Cortecs retains the worldwide commercialization rights to the technologies developed by the Syndicate. This agreement follows the Dec. 1 announcement of the arrangement of a similar R & D Syndication for 0.9 million pounds (Australian $1.9 million) over a three year period to fund the company's further development of its oral therapeutic influenza vaccine, "Flustat".

The aim of the R & D Syndication is to further develop Cortecs' Pseudostat oral therapeutic vaccine. This vaccine should prevent respiratory infection with pseudomonas aeruginosa in patients with serious respiratory diseases such as cystic fibrosis, chronic bronchitis and bronchiectasis.

Patients with these diseases are highly susceptible to infection from this bacterium which is difficult to eradicate and causes rapid deterioration of the lung function. Pseudostat has recently completed Phase I trials in healthy human volunteers and should commence Phase II trials early in 1995. The size of the market for products for the treatment of cystic fibrosis is estimated to be in excess of US$150 million.

The R & D Syndicate will also contribute to development of Cortecs' Moniliastat oral therapeutic vaccine program against candida vaginitis (thrush), which is currently in pre-clinical trials.

It is estimated that 45 percent of all women experience thrush at some time in their life, with up to 5 percent experiencing recurrent infections and up to 3 percent suffering persistent cyclical symptoms.

The condition is currently treated with anti-fungals, with an estimated potential market size for therapeutic and prophylactic use of more than $US500 million. An oral therapeutic vaccine to stimulate cell mediated immunity in women susceptible to recurrent thrush would reduce the need for repeated topical treatments.

Projects for inclusion in R & D Syndicates have to be assessed by the Australian Industrial Research and Development Board and declared to be "core technologies" before they may be included in an approved R & D Syndication development program.

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 for the healthcare industry. Cortecs currently has several innovative drug delivery technologies and rapid diagnostic kits under development. The major projects include:

The Oral Delivery of Biotechnology Drugs

MACROMOL                    a system for the oral delivery of
                            biotechnology drugs such as Calcitonin,
                            which is presently in Phase II clinical
                            tests.
Oral Therapeutic Antigens   oral delivery of therapeutic antigens
AIMI                        against pseudomonas infection (in cystic
                            fibrosis) and influenza.

Oral Anti-Microbials without Antibiotics

ADEPT                       a novel system to prevent and treat
                            diarrhea.

Rapid Point of Care Diagnostics

HELISAL                     a range of diagnostic kits for the
                            detection of Helicobacter pylori.

Cortecs also markets a range of ethical and OTC medicines and diagnostic products.

CONTACT: Cortecs International, London

             Glen Travers or Jonathan Pockson, 011 44 81 568 7071
                            or
             Kehoe, White, Savage & Co. Inc., New York
             Robert Cavosi or John P. Kehoe, 212/888-1616