Nutraceutix Inc. and Dr. Reza Fassihi File Patent for Self-Correcting Drug Release Delivery Innovation.

Business Editors/Health & Medical Writers

REDMOND, Wash.--(BW HealthWire)--July 18, 2001

Nutraceutix Inc. (OTC BB: NUTX), a leading provider of proven technologies and products for the prescription drug, over-the-counter (OTC) and dietary supplement markets, and Reza Fassihi, B.Pharm, Ph.D., professor of Biopharmaceutics and Industrial Pharmacy at the Temple University School of Pharmacy, Philadelphia, have jointly filed a Nutraceutix patent for a self-correcting drug release technology which will allow for increased predictability in delivery for molecules pertaining to drug classes I and II of biopharmaceutics classification system (BCS) guidance of FDA.

Specifically, this patent embodies technology for improved control over the dissolution and transport of the active pharmaceutical ingredients (APIs) in the controlled release oral dosage forms to provide linear release kinetics via self-correcting mechanism, previously unseen in first generation drug delivery systems.

Pharmaceutical companies offering small molecules that have high permeability/low solubility (class II) can benefit from this delivery technology. The technology provides increased flexibility in the design, production and dosing intended for the optimal release pattern.

"I am extremely excited about the innovation of Dr. Fassihi's most recent drug delivery technology. This profound discovery allows the Nutraceutix R&D department to work and formulate with class II drugs that until now have been very difficult to work with using monolithic design approach.

"This new technology demonstrates the same level of precision, robustness and ruggedness as that in our previous two patents licensed from Temple University. It is a great addition to our CDT(TM) platform of technologies," stated Stephen Turner, director of product development at Nutraceutix Inc.

Fassihi stated, "This particular system design is based on the application of physical pharmacy and colloid chemistry along with a wide range of amino acids incorporated into a combination of natural and commonly used synthetic hydrophilic polymers.

"The technology uses GRAS (Generally Regarded As Safe) materials of proven characteristics and allows for the phenomenon of salting-in or salting-out in a supersaturated state within a viscous swollen matrix. This leads to controlled drug release and matrix erosion for soluble and insoluble drug entities."

This technology is presently available, as well as the complete family of Nutraceutix proprietary delivery systems technologies.

Nutraceutix Inc. develops proven technologies and products for the pharmaceutical and nutraceutical industries. In addition to patented ingredients like Calcium D-Glucarate(TM), Nutraceutix provides patented and proprietary technologies like CDT(TM) Controlled Delivery Technology and LiveBac(R) Probiotics.

Nutraceutix technologies provide distinctive supplements with tangible benefits for the consumer and competitive commercial advantages. For more information on Nutraceutix, please call 800/548-3222, or visit www.nutraceutix.com.

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.