Release issued 20th July 2005

Ahmedabad (India), 2004 November 23rd -With the announcement this afternoon of a major strategic alliance between the Italian chemical and pharmaceutical company

Zambon Group S.p.A. and the Indian chemical and pharmaceutical group Zydus Cadila, Zambon Group's presence in South Asia, and internationally, is expanding.

The two companies have agreed to collaborate in a number of areas in the chemical and pharmaceutical sectors. This strategic partnership is the culmination of extensive work by Zambon Group's commercial organisation in India managed by Sanjiv Khurana, which after its first year of activity has achieved a solid presence in the Indian region.

The agreement, signed by Roberto Rettani, CEO of Zambon Group, and Pankaj R. Patel, Chairman and Managing Director of Zydus Cadila of Zydus Cadila, addresses specific commitments in several areas of the fine chemicals and pharma sectors. Strategic activities covered include strengthening information exchange and cooperation between the two firms in formulation and in the development and marketing of pharmaceuticals and active ingredients with projects offering immediate, tangible benefits through R&D synergies.

"We believe the Asian market, and particularly the Indian one, will be a key future market for our Group," Roberto Rettani, CEO of Zambon Group, stated at a press conference today in Ahmedabad. "Many of the large pharmaceutical multinationals are now focusing on South Asia. Zambon already has a consolidated presence in China, and opened a commercial office in India last year. The Group has finalised the first strategic agreements to drive further growth and strengthen its presence in the region".

Speaking on the new alliance, Mr. Pankaj R. Patel, CMD of Zydus Cadila said, "Our expertise in every aspect of the pharmaceutical value chain makes us an ideal outsourcing partner for contract manufacturing and contract research. We believe that by leveraging our strengths in this sphere, we are opening up newer avenues for growth and success. The collaborative spirit of the alliance will open up new doors of opportunity for both companies in Europe and India".

(1st June 2005) FIRST MILESTONE IN ZAMBON GROUP AND OBETHERAPY COLLABORATION.

(14th January 2003) Zambon Group signs amlexanox licensing agreement with Access Pharmaceuticals Inc

(6th June 2002) ZAMBON AND VECTURA COMPLETE LICENSING DEAL

(4th April 2002) Zambon Group and Laboratoires Fournier sign exclusive agreement

(12th February 2002) Zambon Group and APR Applied Pharma Research sign Strategic Alliance