IGI Appoints Rajiv Mathur as President & CEO.

BUENA, N.J. -- IGI, INC, (AMEX:IG) a manufacturer of skin care and consumer products utilizing Novasome[R] lipid vesicle encapsulation and other technologies, announces today that it has appointed Rajiv Mathur as President and CEO effective January 4, 2007. Mr. Mathur is presently Vice President, Skin Care, at Cardinal Health PTS.

Before joining Cardinal Health, Rajiv Mathur headed IGI's Consumer Products Division from 1998 to 2001. He led its Research and Development team from 1992 to 1998 in the development and testing of new or improved OTC and prescription topical products and complete line of dermatological products. Prior to joining IGI he worked for Hoechst Pharmaceuticals and Ranbaxy Laboratories in various different capacities.

Mr. Mathur is the inventor and/or co-inventor of many of the Novasome[R] and absorbent microgels patents, including 23 issued U.S. patents and a wide variety of international patents.

"Rajiv brings to IGI a broad 30 years of the industry experience and high performance standards," Frank Gerardi, Chairman, said. "His skill set is highly relevant to IGI's mission to build upon our micro encapsulation market segment and capitalize on the company's considerable opportunities for growth. I am very excited about our prospects under Rajiv's leadership."

"On behalf of the Board of Directors, I wish to thank Frank Gerardi for positioning the company for future growth," stated Steve Morris, IGI's largest shareholder and Board member.

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 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. Currently, the following companies have used Novasome technology: Estee Lauder, Johnson & Johnson, Neutrogena, Chattem, Vetoquinol, Genesis Pharmaceuticals (a Pierre-Fabre subsidiary), Apollo Pharmaceuticals, All Terrain, PSI, Complexions by Dr. Watts, Your Total Image, DermWorx, SuperFoods LLC and Interwood.

IGI has exclusive rights for the Novasome[R] adjuvant technologies for animal vaccines.

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.