Criticare Systems announces Immtech's acquisition of rights to technologies created by Research Consortium.

MILWAUKEE--(BUSINESS WIRE)--April 15, 1997--Criticare Systems Inc. (NASDAQ:CXIM), a developer, manufacturer and marketer of medical monitoring equipment, announced today that Immtech International Inc. has acquired rights to technologies created by a Research Consortium, led by the University of North Carolina at Chapel Hill and including Auburn, Duke, and Georgia State Universities.

The agreement gives Immtech exclusive rights to a new class of pharmaceutical compounds -- analogs of pentamidine dication drugs, which are effective against a wide variety of fungal, parasitic, and bacterial diseases. The compounds acquired by Immtech have been improved to afford oral dosing and low toxicity. Pentamidine is currently FDA approved for treating Pneumocystis carinii pneumonia (PCP), but requires inhalation or IV administration in a hospital setting and breaks down into toxic by-products. Immtech's pentamidine analogs, developed by the Research Consortium, eliminate these harmful by-products and improve bioavailability when given orally.

"In addition to the exciting new technology for developing pharmaceuticals, the Research Consortium gives Immtech access to a group of world-renowned scientists in the field of infectious diseases," said Steve Thompson, Immtech's president and CEO. "We are excited about working with them to bring this important new class of anti-infective drugs to immune-suppressed patients." The Research Consortium, headed by Dr. Richard Tidwell, Professor of Pathology and Laboratory Medicine at the University of North Carolina at Chapel Hill, is sponsored by an NIH National Cooperative Drug Development Grant, which provides funding for the development of new drugs through 1999. The Consortium has in development (using both empirical and rational drug design) over 600 compounds in various stages of testing for potential use in treating infectious diseases.

Immtech International is currently filing INDs with the Food and Drug Administration for clinical trials of its lead drugs. The first drug to be tested is a treatment for Cryptosporidium parvum, a parasite that causes debilitating diarrhea in immune-suppressed AIDS and cancer patients. There is not currently a drug to treat this disease; the company estimates the market to be over $100 million annually. The next drug to be tested is an orally active, less toxic prodrug analog of pentamidine to treat PCP. The current market for pentamidine as a PCP therapy is estimated to be $250 million annually. The company expects that, in addition to its lead compounds, several of its broad-spectrum antifungal compounds will be ready for clinical trials within the next 12 months.

Immtech International Inc., based in Evanston, Ill., uses proprietary biological and pharmaceutical technology to develop therapeutic drugs for the treatment of diseases affecting immune-suppressed patients. The biological drugs stimulate the innate immune response, while the pharmaceuticals treat opportunistic infections. Immtech has formed a joint venture with Pharm-Eco Laboratories Inc. to commercialize compounds developed by the Research Consortium. Pharm-Eco, a pharmaceutical manufacturing firm based in Lexington, Mass., initially obtained rights to commercialize the technologies of the Research Consortium in exchange for providing financing and technical support. Pharm-Eco has agreed to transfer commercial rights to these compounds to Immtech. Immtech has retained exclusive licensing rights to all its underlying technologies which are covered by 27 U.S. patents (17 issued), from Northwestern University, Rush Medical School, The University of North Carolina at Chapel Hill, Auburn, Duke, and Georgia State Universities.

Criticare is the largest single Immtech shareholder, owning approximately 32 percent of the outstanding stock.

CONTACT: Criticare Systems Inc.

Gerhard Von der Ruhr, President, 414/798-8282

or

CCRI Corp.

Malcolm McGuire, 800/828-0406

or

Immtech International Inc.

T. Stephen Thompson, President, 847/869-0033

or

University of North Carolina

David Winwood, Ph.D., 919/966-3929