Hercules Development Group - Astralis Appoints Dr. James J. Leyden, MD, Chairman Of Medical Advisory Board.

Business Editors

FLORHAM PARK, N.J.--(BUSINESS WIRE)--Oct. 15, 2001

Developer of ACCUTANE signs contract with Astralis to

oversee US clinical trials on PSORAXINE

Hercules Development Group (OTC BB:HDVG) is pleased to announce that Astralis, the company with which it has executed a definitive merger agreement, has appointed Dr. James J. Leyden, MD as Chairman of the Company's Medical Advisory Board. In this role, Dr. Leyden will help coordinate clinical trials on Psoraxine according to FDA guidelines. This appointment is effective immediately.

Dr. Leyden is a Professor of Dermatology at the Hospital of the University of Pennsylvania in Philadelphia. He has served or is presently serving on the boards of many of the nation's key dermatological committees, including those of the American Academy of Dermatology and the Dermatology Foundation. Dr. Leyden has also served as a consultant to the US Food and Drug Administration and the Federal Trade Commission, and to drug regulation agencies in England, Germany and Austria. Dr. Leyden has also been instrumental in the development, testing and commercialization of Accutane, Bactroban, Nizoral, Cleocin, Benzamycin, Benzaclin, Minocin and the use of bicarbonate to control body odor.

"Dr. Leyden's appointment as Chairman of Astralis's Medical Advisory Board is a significant development for the Company," said Mike Ajnsztajn, CEO of Astralis.

Astralis Chairman, Dr. Jose Antonio O'Daly, MD, PhD commented: "With Dr. Leyden we have added a wealth of expertise in the dermatological science industry. His reputation as a leading medical professional in the field of dermatology means we will be able to enroll the top doctors in the country as investigators for Psoraxine during its clinical trials in the US."

Dr. Leyden stated: "I have the seen the results generated with Psoraxine on patients in Venezuela over the past eight years, and I am looking forward to starting the American clinical trials in the future."

The first drug to be developed by Astralis, PSORAXINE, has brought about clinical remission of the skin condition known as Psoriasis during clinical trials conducted in Venezuela. The Company has treated 3,000 patients with Psoraxine to-date. Of these, 638 experienced complete remission and 1,000 have experienced between 70% and 90% remission. The primary end point was the reduction of the Psoriasis Area and Severity Index (PASI) before and after treatment with Psoraxine. Overall, 96% of patients have responded positively to Psoraxine, with few adverse effects, although these results were not independently verified.

Psoriasis affects 7 million people in the United States alone, and conservative estimates indicate that up to 3% of the world population also suffer from this condition-as many as 180 million people. Psoriasis results due to an overproduction of skin by blood cells associated with the immune system. These blood cells become confused and act as though the skin was damaged, manufacturing skin cells at a much faster rate than is required by undamaged skin. This overproduction of skin can cause everything from itchy rash-like patches to painful pustules and massive inflammation. Most current treatments are sub-optimal and some systematic treatments can cause serious side effects. In fact, of the 7 million people living with Psoriasis in the US today, only 1.6 million choose treatment.

Astralis is the developer of Psoraxine, a drug that has brought about a clinical remission of the skin condition Psoriasis in patient trials. The Company has applied for patent protection for composition of matter, method of use, DNA sequence of peptides, and the new gene sequence that fuels Psoraxine. The company is in the process of submitting the IND for FDA approval to start US clinical trials.