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STI'S INNOVATIVE CONTRACT RENEWED BY U.S. DEFENSE DEPARTMENT

 ROCKVILLE, Md., Dec. 2 /PRNewswire/ -- Survival Technology, Inc. (STI) (NASDAQ-NMS: STIQ), today announced that it has signed an agreement with the U.S. Defense Department's Defense Personnel Support Center (DPSC) to renew for a second year the industrial base maintenance contract for nerve gas antidotes using STI's auto-injector delivery system. This innovative contract, initially awarded to STI in November 1992, is part of a special program by DPSC to assure adequate supplies of critical items in the event of war.
 The DPSC contract with STI is expected to generate $5.6 million in revenue during STI's fiscal year ending July 31, 1994, and contains an additional renewal option through Sept. 30, 1995. The agreement calls for the retention of key personnel and facilities to assure expertise for manufacturing auto-injectors containing nerve gas antidotes, the storage of serviceable material from expired auto-injectors, the management of the U.S. Army's shelf-life extension program and new product orders. A surge capability provision allows for the coverage of defense mobilization requirements in the event of rapid military deployment.
 In addition to the services already provided under this contract, STI will seek to become a qualified manufacturer of the DiazePam auto- injector for the U.S. Department of Defense (DoD). The DiazePam auto- injector was previously supplied by Solvay Duphar B.V., which closed its U.S. operation in June 1993.
 "The option renewal clearly demonstrates DoD's commitment to this innovative contract and is one of the ways DPSC is changing how it does business," said Jeffrey W. Church, STI's chief financial officer and U.S. military business unit director. "The addition of the DiazePam auto-injector development activity as part of the base maintenance contract is further evidence of the flexibility and cost-effectiveness of this new contracting approach."
 Originally developed by STI in the United States and widely used by the military for nerve gas antidotes during the Persian Gulf War, auto- injectors are small pen-like, spring-loaded medical devices that permit an individual to self-inject a precise drug dosage safely, quickly and conveniently. STI has sold over 85 million auto-injectors to the U.S. military and allied foreign governments since 1958. In addition to military applications, STI has entered development and supply agreements for 14 commercial pharmaceutical and biotechnology products worldwide using its exclusive auto-injector technology.
 "STI has developed a family of new auto-injector drug delivery systems to meet the rapidly growing needs of pharmaceutical and biotechnology companies as well as the military," said James H. Miller, president and chief executive officer of STI. "The agreement with DPSC not only enables us to assure that these vital medical devices will be available in sufficient supply to U.S. armed forces but positions STI to continue the development of improved auto-injector systems for military use in the future."
 Survival Technology, Inc., is a technology-based health care company that designs, develops and produces automatic injectors, prefilled syringes and medical electronics, with a major focus on safe and convenient participation by the patient in injection therapy. The company also supplies delivery system design, pharmaceutical research and development and sterile product manufacturing to major pharmaceutical companies worldwide.
 -0- 12/2/93
 /CONTACT: James H. Miller, president and CEO, or Jeffrey W. Church, vice president-finance and CFO, of Survival Technology, 301-926-1800/
 (STIQ)


CO: Survival Technology, Inc.; U.S. Department of Defense ST: Maryland IN: ARO MTC SU: CON

MH-DC -- DC007 -- 9711 12/02/93 10:32 EST
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Publication:PR Newswire
Date:Dec 2, 1993
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