InSite Vision Signs Agreement for Development of PCG Assay.

Business Editors & Health/Medical Writers

ALAMEDA, Calif.--(BW HealthWire)--June 18, 2002

InSite Vision Incorporated (AMEX:ISV) -- an ophthalmic therapeutics, diagnostics and drug delivery company -- today announced that it has signed an agreement with a leading diagnostics company to develop a commercial assay to detect primary congenital glaucoma (PCG). InSite Vision holds the exclusive worldwide rights to 37 gene mutations that are associated with PCG. Terms of the agreement were not announced.

PCG is known to be a significant cause of blindness in infants. The gene mutations associated with PCG, which are by definition present at birth, cause the failure of the trabecular meshwork in the eye to develop properly.

"The development of an assay to detect PCG marks a major move toward potentially commercializing a diagnostic test for this serious but treatable disease. Early recognition and appropriate surgical intervention for PCG may significantly improve a child's visual future," said S. Kumar Chandrasekaran, chief executive officer of InSite Vision. "Our partner is developing this assay using novel proprietary technology. We ultimately plan to introduce a test that is both rapid and cost effective for analysis of multiple mutations associated with PCG.

"The PCG test, when introduced, will expand our genetic testing business and bring us closer to our goal of screening for the major glaucoma-related genes and mutations to provide the broadest applicability, from disease detection to management," added Dr. Chandrasekaran.

InSite Vision is currently launching the OcuGene(TM) glaucoma genetic test that detects mutations in the TIGR gene that have been associated with the increased probability of developing a more severe form of glaucoma. Earlier this year, InSite Vision obtained the exclusive worldwide rights to the Optineurin gene and its mutations, which have been linked to primary open-angle glaucoma, including a subgroup known as normal-tension glaucoma. Last month, InSite Vision announced that it had obtained the exclusive worldwide rights to the apolipoprotein E (ApoE) gene for the diagnosis and treatment of glaucoma. The ApoE gene has been linked to optic nerve and visual field damage in glaucoma patients. InSite Vision is working towards the potential commercialization of these new genetic markers for glaucoma.

InSite Vision is an ophthalmic products company focused on glaucoma, ocular infections and retinal diseases. InSite Vision's glaucoma activities include genomic research, using TIGR and other genes, for its diagnosis, prognosis and disease management test OcuGene(TM), as well as ISV-205, its novel glaucoma therapeutic. ISV-205 uses InSite Vision's proprietary DuraSite(R) drug-delivery technology, which also is incorporated into the ocular infection programs ISV-401 and ISV-403, and InSite Vision's retinal disease program. Additional company information can be found at www.insitevision.com.

This press release contains among other things certain statements of a forward-looking nature relating to future events or the future business performance of InSite Vision. Such statements entail a number of risks and uncertainties, including but not limited to, market acceptance of our products including OcuGene, ISV-205, ISV-401 and ISV-403, and our potential test for PCG; our ability to maintain and develop additional collaborations and commercial agreements with corporate partners, including with respect to OcuGene and the PCG test; our reliance on third parties for the development, marketing and sale of our products; and the results of preclinical and clinical studies and determinations by the U.S. Food & Drug Administration. Reference is made to the discussion of risk factors detailed in InSite Vision's filings with the Securities and Exchange Commission, including its annual report on Form 10-K and its report of Form 10-Q for the quarter ended March 31, 2002. Any projections in this release are based on limited information currently available to InSite Vision, which is subject to change. Although any such projections and the factors influencing them will likely change, InSite Vision will not necessarily update the information, since InSite Vision may only provide guidance at certain points during the year. Actual events or results could differ materially and no reader of this release should assume later that the information provided today is still valid. Such information speaks only as of the dates of this release.

Note to Editors: OcuGene is written with a "small cap" G; if doing so is not possible, please use an upper case G. InSite Vision Incorporated, InSite Vision, DuraSite and OcuGene are trademarks of InSite Vision Incorporated. Other trademarks that may be mentioned in this advisory are the intellectual property of their respective owners.