New Study Explores Use of Novel Form of Northfield's Human Hemoglobin-Based Oxygen Carrier in Pancreatic Islet Cell Transplantation; Findings Presented at World Transplantation Congress.

EVANSTON, Ill. -- Northfield Laboratories Inc. (Nasdaq: NFLD) announced today that a preclinical study describing the use of a novel formulation of the Company's human hemoglobin-based oxygen carrier in pancreatic islet cell isolation and transplantation was presented at the World Transplantation Congress in Boston this morning.

Jose Oberholzer, M.D., Director of Cell and Pancreas Transplantation at the University of Illinois at Chicago and Director of the Chicago Project, led the research team. The study explored the use of Northfield's hemoglobin-based oxygen carrier that was specially formulated as a solution to improve oxygen delivery and thus better maintain pancreatic islet cell function. The results of this initial study demonstrate that such a solution improves islet cell function and transplantation outcomes in small animals. The paper was presented by Jose G. Avila, M.D., of the Department of Surgery/Division of Transplantation, University of Illinois at Chicago.

Research has demonstrated that islet cell transplantation can reduce or eliminate the need for insulin in some diabetic patients. The goal of islet cell transplantation is to infuse sufficient functional donor islet cells into the pancreas of the diabetic recipient to control glucose levels, slowing or preventing the progression of complications associated with diabetes, without the use of insulin. The procedure has been hampered by a short supply of high quality, functional pancreatic islets and a gradual loss of function after transplantation using current techniques.

Dr. Oberholzer's work demonstrates that the use of this novel form of Northfield's human hemoglobin-based oxygen carrier has the potential to improve the outcomes associated with pancreatic islet cell transplantation and therefore may be useful in the treatment of diabetes in the future.

About Diabetes

Diabetes is a disease in which the pancreas does not produce or properly use insulin. Insulin is a hormone that is needed to convert sugar, starches and other food into energy needed for daily life. The American Diabetes Association (ADA) estimates that 14.6 million children and adults in the United States have been diagnosed with diabetes, while 6.2 million people (or nearly one-third) are unaware that they have the disease. Diabetes is associated with an increased risk for a number of serious, sometimes life-threatening complications, among them heart disease and stroke, blindness, kidney disease, and amputations. The ADA estimates total annual economic cost of diabetes in 2002 was estimated to be $132 billion, or one out of every 10 health care dollars spent in the United States.

About the Chicago Project

The Chicago Project, under the direction of Jose Oberholzer, M.D. of the University of Illinois at Chicago, is a group of distinguished research scientists and physicians from university and medical centers in Switzerland, France, Israel, Canada and the United States committed to achieving a functional, or cell-based, treatment for diabetes.

About Northfield Laboratories

Northfield Laboratories Inc. is a leader in developing an oxygen-carrying red blood cell substitute for the treatment of life-threatening blood loss, when an oxygen-carrying fluid is required and red blood cells are not available. PolyHeme(R) is a solution of chemically modified human hemoglobin that requires no cross matching and is therefore compatible with all blood types. It has a shelf life in excess of 12 months. Enrollment is currently underway in a pivotal Phase III trial of PolyHeme(R) beginning in the pre-hospital setting. For further information, visit www.northfieldlabs.com.

This press release may contain forward-looking statements concerning, among other things, Northfield's future business plans and strategies and clinical and regulatory developments affecting our PolyHeme(R) red blood cell substitute product. These forward-looking statements are identified by the use of such terms as "intends," "expects," "plans," "estimates," "anticipates," "should," "believes" and similar terms. These forward-looking statements involve inherent risks and uncertainties. Our actual results may therefore differ materially from those predicted by the forward-looking statements because of various factors and possible events, including our ability to obtain FDA approval to market PolyHeme commercially, the availability of capital to finance our clinical trials and ongoing business operations, our ability to obtain adequate supplies of raw materials and to manufacture PolyHeme in commercial quantities, our ability to market PolyHeme successfully, the possibility that competitors will develop products that will render PolyHeme obsolete or non-competitive, our ability to protect our intellectual property rights, the outcome of certain governmental inquiries and purported class action lawsuit as described in our most recently filed quarterly report on Form 10-Q, the possibility that we may be subject to product liability claims and other legal actions, our dependency on a limited number of key personnel, the uncertainty of third party reimbursement for our product and other risks and uncertainties described from time to time in our periodic reports filed with the Securities and Exchange Commission, including our most recently filed quarterly report on Form 10-Q and annual report on Form 10-K. These forward-looking statements speak only as of the date of this press release. We do not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the time such statement is made. All subsequent written and oral forward-looking statements attributable to Northfield or any person acting on our behalf are qualified by this cautionary statement.