NeoPharm Reports New Patent for Antisense Compounds in the NeoLipid System; New patent further strengthens LE-AON intellectual property.

Business Editors

LAKE FOREST, Ill.--(BUSINESS WIRE)--Jan. 7, 2002

NeoPharm, Inc. (Nasdaq National Market: NEOL) announced today that a patent has been issued covering the use of NeoPharm's proprietary NeoLipid(TM) liposomal delivery system, for the delivery of antisense compounds. NeoPharm is currently in Phase I/II development of its novel product, Liposomal Encapsulated Antisense Oligonucleotide (LE-AON) against c-Raf, an oncogene that plays a major role in the cancer cell proliferation pathway. Activation of Raf-1 kinase has also been associated with resistance to radiation therapy. Inhibition of Raf-1 expression through antisense oligonucleotide is an effective clinical strategy to inhibit cancer cells and overcome radiation resistance. This new patent covers the use of LE-AON in treating radiation resistant cancers. LE-AON is licensed from Georgetown University, a long time research and development partner of NeoPharm. The Company anticipates the initiation of Phase II clinical trials in LE-AON later this year for various indications, as both a radiation sensitizer as well as a chemosensitizer.

"We are pleased to report the issuance of this patent that further strengthens the intellectual property of the NeoLipid system and our antisense products", said James M. Hussey, President and CEO of NeoPharm. "We continue to be pleased with the breadth of products which are amenable to encapsulation using our NeoLipid system."

NeoPharm, Inc., based in Lake Forest, Illinois, is a publicly traded biopharmaceutical company dedicated to the research, development and commercialization of new and innovative cancer drugs for therapeutic applications. The Company has a broad portfolio of cancer compounds in various stages of development using two novel proprietary technology platforms.

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such statements include, but are not limited to, any statements relating to the Company's drug development program and any other statements that are not historical facts. Such statements involve risks and uncertainties, including, but not limited to, those risks and uncertainties relating to difficulties or delays in development, testing, regulatory approval, production and marketing of the Companies' drug candidates, unexpected adverse side effects or inadequate therapeutic efficacy of the Companies' drug candidates that could slow or prevent products coming to market, the uncertainty of patent protection for the Company's intellectual property or trade secrets and other risks detailed from time to time in filings the Company makes with Securities and Exchange Commission including their annual reports on Form 10-K and their quarterly reports on Forms 10-Q. Such statements are based on management's current expectations, but actual results may differ materially due to various factors, including those risks and uncertainties mentioned or referred to in this press release.