Sheffield Medical Technologies issued European patent on HIV AIDS therapeutics; receives first tranche of proposed financing.

HOUSTON--(BUSINESS WIRE)--Jan. 25, 1995--Sheffield Medical Technologies Inc. (AMEX:SHM) Wednesday announced that it has been issued its second European patent.

The patent, "Animal Derived Cell with Antigenic Protein Introduced Therein," relates to the company's Red Blood Cell-CD4 and Liposome-CD4 therapeutic projects for HIV/AIDS and initiates the national validation process in the various European countries. The European Patent Office previously issued a patent on the HIV/AIDS Vaccine under development in France by the company.

Additionally, as a first step of the company's previously announced 1995 capital raising strategy, Sheffield has received interim funding in the form of a debt security which will be exchangeable for a convertible debenture and common stock purchase warrants upon completion of the company's proposed $3 million private placement.

The EPO Patent No. 298280B1 relates specifically to engineered red blood cells and liposomes, which have incorporated the human CD4 antigen into their plasma or lipid membranes, and which may contain one or more cytotoxic agents capable of destroying any cells which fuse with the engineered liposomes. The patent also relates to a method for using RBC-CD4 and Liposome-CD4 to treat HIV infection and AIDS.

The company's RBC-CD4 electroinsertion technology, designed to target HIV and HIV-infected cells in the blood, and its Liposome-CD4 technology, designed to target the lymphatic system, are both covered under this same European patent. Research has shown that once bound and internalized by RBC-CD4, the HIV disintegrates and is removed from the body as part of a natural process called phagocytosis, during which red blood cells are eliminated from the blood stream at the end of their approximately 120-day life span.

Studies suggest that the presence of CD4 on liposomes could be used to specifically deliver antiviral drugs or toxic agents encased in Liposome-CD4 to HIV-infected cells in order to specifically kill those cells and inactivate HIV by fusion with the Liposome-CD4.

Sheffield Medical Technologies provides development funding for selected medical projects that are in late-stage research and address large or unmet market needs.

Sheffield currently has five projects in its technology portfolio, inclusive of the HIV/AIDS therapeutics described above, an HIV/AIDS vaccine, which is in preclinical animal studies at the French National Institute of Health and Medical Research ("INSERM"), a diagnostic and therapeutic for prostate cancer and benign prostatic hyperplasia, under preclinical development at Baylor College of Medicine, and certain anti-proliferative therapies under development and clinical testing at Harvard Medical School.

CONTACT: Sheffield Medical Technologies Inc.,

Douglas R. Eger or Gloria Mechaley,

713/739-8221 (Houston)

or

Harvey L. Kellman, 212/957-6600 (New York)