TCPI, Inc. Announces Plan to Reorganize Under Chapter 11; Company Will Continue to Conduct Business.

Business Editors

POMPANO BEACH, Fla.--(BUSINESS WIRE)--July 3, 2001

TCPI, Inc. (OTCBB:TCPI), a worldwide marketer of point-of-care medical diagnostic products and skin permeation enhancers, filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court in the Southern District of Florida. TCPI is seeking immediate authority from the court to pay in the ordinary course of business, as to its pre-filing obligations, all vendors, brokers and employees. As in all Chapter 11 cases, post-petition obligations to vendors, employees and others will be honored and satisfied in the normal course of business without the need to obtain court approval.

The Company intends to file with the court a plan of reorganization for TCPI to emerge from bankruptcy in the future. Elliott Block, Ph.D., President & Chief Executive Officer of TCPI, said, "Chapter 11 reorganization provides a legal framework that allows us to keep the business running normally while we put our finances in order.

Our intent is to emerge from the proceedings as a stronger company."

Dr. Block continued, "This was a difficult, but absolutely necessary, decision for TCPI to make. It is the only option that will free TCPI from its overwhelming burden of debt and litigation expenses incurred over the past years. TCPI has already reduced its workforce by 58% since last September in addition to other cost reductions. With a new capital structure and the commitment of our management team and employees to execute our strategy, I believe TCPI will become a viable company marketing diagnostic products and licensing skin permeation enhancer and drug delivery technologies."

No Interruption in Production or Distribution Planned

All vendors of TCPI will continue to be paid, as to post-petition obligations, in the normal course of business. Subject to the court's approval, vendors of TCPI will be paid as to their pre-petition obligations in the normal course of business. TCPI continues to be committed to, and fully in support of, all sales plans and programs with its customers. The Company will continue to operate from its Pompano Beach headquarters.

Dr. Block said, "Over the past year, we struggled to find a different solution for all our stakeholders. However, the depth of the problems facing TCPI did not allow for any realistic choice other than pursuing the necessary restructuring under Chapter 11. While the Company did have in place financing facilities to cover working capital, those facilities could not be accessed because our shareholders did not authorize additional common stock."

Dr. Block concluded, "We intend for this restructuring of our financial obligations to free TCPI from its debt burden and litigation expenses and put the reorganized TCPI on track for economic viability and successful operations. I look forward to working with our dedicated management team and employees, as well as our suppliers and customers, to continue to build on TCPI's foundation and reputation for quality and dependability."

Background on Chapter 11

Chapter 11 of the U.S. Bankruptcy Code allows a company to continue to operate its business and manage its assets in the ordinary course of business. Congress enacted Chapter 11 to avoid the negative effects of liquidation proceedings and to enable a debtor business to preserve its going concern value and its operations, as well as to provide its employees with jobs and to satisfy creditor claims based upon the value of the reorganized company.

About TCPI

TCPI, Inc. markets point-of-care medical diagnostic products, including its pregnancy and ovulation detection tests, for use at home, in physician's offices, and other healthcare locations and distributes them worldwide through multiple marketing channels. The Company also markets its patented SR-38(TM) skin permeation enhancer and owns a patent-protected, proprietary portfolio of transdermal and dermal drug delivery technologies.

Copies of this and other news releases may be obtained free of charge at TCPI's Website at http://www.tcpi.net.

Forward Looking Statements

Information in this press release, including any information incorporated by reference herein, includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended, and is subject to the safe-harbor created by such sections. The Company's actual results may differ significantly from the results discussed in such forward-looking statements.

Statements regarding the effects of a Chapter 11 filing, funding of projects, liquidity, capital resources, future prospects, business plans and strategies, future acceptance of the Company's products, as well as other statements contained in this report that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, and similar statements are forward-looking statements. These statements are based upon assumptions and analyses made by the Company in light of current conditions, future developments and other factors the Company believes are appropriate in the circumstances, or information obtained from third parties and are subject to a number of assumptions, risks and uncertainties. Readers are cautioned that forward-looking statements are not guarantees of future performance and that actual results might differ materially from those suggested or projected in the forward-looking statements. Factors that may cause actual future events to differ significantly from those predicted or assumed include, but are not limited to: the ability of the Company to successfully emerge from bankruptcy proceedings, including the possibility of liquidation, the continuing post-petition sale of the Company's products to its pre-petition customers, the acceptance and approval by the Bankruptcy court of the Company's reorganization plan, the Company's severely limited cash reserves; the Company's continued incurring of losses; the Company's negative cash flow; the Company's ability to sell or license all or some of its assets in order to immediately fund its operations; risks related to the early stage of the Company's existence and its product development, as well as other risks listed in the Company's other press releases and in its other filings with the Securities and Exchange Commission. The Company may determine to discontinue or delay the development of any or all of its products under development at any time. For a complete description of the Company's business, products and liquidity, see the Company's Annual Report on Form 10-K for the year ended December 31, 2000 and its Quarterly Report on Form 10-Q/A for the quarter ended March 31, 2001.