Nutraceutix Inc. Acquires Exclusive Rights to Newly Issued Pharmaceutical Patent From Temple University.

Health/Medical Writers

REDMOND, Wash.--(BW HealthWire)--Sept. 24, 2001

Nutraceutix Inc. (OTC BB: NUTX), has announced the acquisition of a license for pharmaceutical applications for the first CDT(TM) Controlled Delivery Technology patent from Temple University School of Pharmacy, Philadelphia.

This new U.S. license grants exclusive rights to develop, manufacture and sell prescription oral dosage forms of drugs, as well as Over-the-Counter (OTC) products, and dietary supplements as previously licensed to Nutraceutix.

Developed in the laboratories of Dr. Reza Fassihi, Ph.D., at Temple, the second CDT(TM) patent (U.S. pat. No. 6,090,411) was licensed exclusively to Nutraceutix in September 2000 for pharmaceutical, OTC, and nutraceutical applications.

The platform of CDT(TM) technologies may signal a milestone in delivery technology science as they address many of the challenges common to delivery systems that are currently available.

The new technology has been shown to be rugged and robust during in-vitro studies on a wide range of established pharmaceuticals, such as nifedipine, theophylline, propanolol, diltiazem, and verapamil, as well as OTC and nutritional supplements such as pseudoephedrine, glucosamine and niacin.

According to David T. Howard, president & chief executive officer of Nutraceutix Inc., "The U.S. patent for pharmaceutical applications provides Nutraceutix with a clear technological advantage over first generation, controlled delivery systems.

"Now, complementing our existing alliances with OTC and nutraceutical companies, we will seek to partner with major pharmaceutical and generic companies as well, to co-develop new prescription drugs incorporating Nutraceutix's technology."

Management anticipates that it will be in the year 2005 before any revenues may be realized from this new acquisition other than development fees.

Nutraceutix has applied materials science, colloid chemistry and biopharmaceutics in the development of these simple monolithic matrix systems collectively referred to as "self-correcting matrix delivery systems."

These approaches use the conventional tableting technologies to form swellable, erodible matrix tablets, caplets or capsules that can potentially yield first-order, bimodal and zero-order drug release profiles. In addition any combinations of soluble, highly soluble, insoluble, low drug dose, high drug load and drug combinations can be easily formulated with these technologies.

The underlying technical principles of the developed technologies are sound. Drug delivery and the system can be optimally manipulated to meet many of the challenges of the next decade that we face in life-cycle management of both old and new drugs.

Formulation flexibility of the developed systems lends itself to easy production of a larger range of dose variants for elderly patients and individualized dosage regimens.

Nutraceutix Inc. develops proven technologies and products for the pharmaceutical, Over-the-Counter (OTC) and nutraceutical industries. Nutraceutix provides patented and proprietary technologies such as LiveBac(R) Probiotics and the patented CDT(TM) Controlled Delivery Technology platform.

Nutraceutix's CDT(TM)-Pseudoephedrine, CDT-Niacin, and CDT-Glucosamine developed products are licensed to Lehigh Valley Technologies (LVT), based in Allentown, Pa. for manufacture under cGMP conditions, and for distribution in the United States. Nutraceutix technologies provide distinctive products with tangible benefits for the consumer and competitive commercial advantages.

For more information on Nutraceutix, please call 800/548-3222.

Except for any historical information, the matters discussed in this press release contain forward-looking statements, including activities, events or developments that the company expects, believes or anticipates will or may occur in the future. Such statements are subject to a number of assumptions, risks and uncertainties.

Readers are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those set forth in the forward-looking statement.