IGI Announces Rajiv Mathur Has Withdrawn His Resignation from the Board of Directors.

BUENA, N.J. -- IGI, INC, (AMEX:IG) a manufacturer of cosmetics, skin care, and consumer products utilizing Novasome[R] lipid vesicle encapsulation and other technologies, announced today that after further review of the Company's financing plan that was approved by the Board of Directors, Rajiv Mathur has withdrawn his resignation and will be rejoining the Board of Directors.

IGI is a company committed to growth by applying proprietary technologies to achieve cost-effective solutions for varied customer needs. IGI offers the patented Novasome[R] lipid vesicle encapsulation technology which contributes value-added qualities to cosmetics, skin care products, dermatological formulations and other consumer products, providing improved dermal absorption, low potential for irritations, controlled and sustained release as well as improved stability. IGI has licensed Novasome[R] lipid vesicle encapsulation technology to leading global dermatological and skin care companies including Johnson & Johnson Consumer Products, Inc., Estee Lauder Companies, Chattem Inc., Genesis Pharmaceutical, Inc., Apollo Pharmaceutical, Inc. and Vetoquinol USA. IGI sub-licensed the rights to obtain FDA approval for and market IGI's PTH (1-34) compound using Novasome[R] lipid vesicle encapsulation technology for psoriasis, which is being reformulated for Phase II clinical trials, to Manhattan Pharmaceuticals, Inc. IGI is also exploring the licensing of the topical PTH (7-34) compound for the prevention/treatment of chemotherapy induced-alopecia in patients undergoing chemotherapy. IGI markets its own line of proprietary products that diminish the visual affects of aging. These products can be found at www.miaj.com.

This report contains forward-looking statements relating to IGI's hopes and expectations for the future. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "will," "possible," "one time," "provides an opportunity," "continue" and similar expressions are intended to identify forward-looking statements. Such statements involve a number of risks and uncertainties and actual future events and results could differ materially from those indicated by such forward-looking statements due to general economic conditions, and the risk factors detailed in IGI's periodic reports and registration statements filed with the Securities and Exchange Commission.