Release issued 30th July 2001

TransDermal Technologies, Inc. announced today the initiation of a 4-year collaboration with The Department of Experimental Pathology of the William Harvey Institute of St. Bartholomew's and the Royal London School of Medicine and Dentistry, Charterhouse Square, London. Company President Kenneth Kirby announced the grant is being funded by the Langford Institute for Transdermal Research, a not-for-profit entity which promotes research into transdermal delivery of drugs. The Principal Collaborators will be Professor Derek Willoughby and Dr. Chandan A.S. Alam of the Department of Experimental Pathology. Sir John Vane, FRS and winner of the Nobel Prize for Medicine for his discovery of the mechanism of aspirin, is the Chairman of the Harvey Institute.

The initial research will be a continuation of development of pre-clinical data by the department on several drugs for which positive results have already been established. Studies will focus on NSAIDs, Opiates & Opioids, COX2 inhibitors, anti-infectives, antihistamines and macro- molecules. Dr. Alam has already demonstrated TransDermal's TDS' ability to deliver Cystamine, Testosterone, Morphine, Acyclovir, and Ibuprofen.

"We are quite pleased to begin ramping up our work on this exciting new technology," said Dr. Alam. "Our completed studies have begun to convince us that there may be a significant finding just around the corner." "As scientists in an experimental department, we are often called upon to evaluate so-called breakthroughs, and these usually and almost routinely prove to be unreproduceable in our laboratories, but Transdermal Technologies has submitted five different compounds for trial, and in each one the TDS technology has performed remarkably well, even with compounds like morphine and acyclovir which are not readily sent through intact skin." "With the types of consistent performance from trial to trial that we are seeing, our scepticism has been replaced with cautious optimism that the TDS may, in fact, be proven to perform as well as TransDermal Technologies believes it does."

Professor Willoughby is a world-renowned expert in inflammation and consultant to several pharmaceutical companies and a director of the Harvey Institute. Dr. Alam is a specialist in angiogenesis and inflammation. He also has an interest in cell metabolism with particular interest in glucose metabolism and the mechanism of action of Insulin.

The TDS(tm) technology is a novel drug delivery system which accomplishes rapid delivery of therapeutic doses of medicaments across intact skin without a patch or other reservoir device. The company is currently seeking partners to license the TDS technology in various therapeutic categories including hormone replacement therapy, anti-infectives, analgesics, neurologicals & psychotropics and pediatrics.

The TDS(tm) is designed to be modified for each application and is believed to enable the rapid, safe and effective delivery of many medicaments across intact skin by means of its sprayed on or applicator-applied lotions.

Company Contact: Kenneth B. Kirby - k.kirby@transdermaltechnologies.com / 800-282-5511 / 561-848-9100

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