Date: Thu, 6 Apr 2000 15:22:49 EDT

Hydromer, Inc. announces the signing of a cooperative research agreement with I-MED Pharma Inc. to Develop Hydromer's Aquatrix II Hydrogels for Biosurgical Applications

BRANCHBURG, NJ--(BUSINESS WIRE)--April 6, 2000--Hydromer, Inc. (HYDI -OTC BB) reported today that it has signed an agreement with I-MED Pharma, a privately held company headquartered in Montreal, Canada, to use their patented Hydromer(R) Aquatrix(TM) II hydrogel technology for biosurgery applications. Aquatrix II hydrogel technology is based on chitosan, a structural analog to hyaluronic acid, derived from chitin, nature's second most abundant biopolymer after cellulose, and polyvinylpyrrolidone (PVP), a synthetic polymer. Both have been used for decades for biomedical applications. The unique combination of these two materials spontaneously forms a cross linked hydrogel without the use of other chemicals or external energy.

Biosurgery is a rapidly growing field where surgeons use solutions and gels to enhance or replace traditionally invasive surgery. Companies like Biomatrix (NYSE: BXM), Integra Life Sciences (Nasdaq: IART), Genzyme (Nasdaq: GENZ) through their Genzyme Tissue Repair (Nasdaq: GZTR) and Genzyme Surgical Products (Nasdaq: GZSP) subsidiaries are the current leaders in the field. Biosurgical technology is used in fields like wound care, burn care, cosmetic augmentation, orthopedics, tissue adhesion reduction in surgery, including the recently announced product for sinus surgery by Biomatrix.

Under the terms of the agreement, I-MED Pharma will complete a full ISO 10993 material biocompatibility study to confirm acceptability of the products made with patented Aquatrix II formulas and manufacture products for internal Head and Neck, and Breast Implant/Reconstruction applications. Hydromer will have an exclusive and unrestricted license to use the biocompatibility data generated for other applications and licensees. I-MED Pharma has until December 1, 2000 to execute a pre-negotiated global license for the two licensed uses and pay Hydromer an initial payment of $50,000 per license, with a royalty stream on product sales using the technology or quarterly minimums starting no later than March 1, 2003. Hydromer will also supply the bulk hydrogel under the terms of the agreement.

"Biotechnology is a rapidly growing field in which Hydromer has enabling or value-added technologies. We are excited to have a partner like I-MED Pharma work with us in the development of our Aquatrix technology for biosurgical applications. They bring a global understanding and network within their markets, and an entrepreneurial approach to product development and marketing" said Joseph Ehrhard, Vice President of New Business and R&D at Hydromer. "The market today is effectively dominated by collagen or hyaluronic acid based biomaterials. These materials while effective, do have some issues like cost effectiveness due to their sources, usually calf tendon or excised human skin for collagen, and rooster combs for hyaluronic acid. In some cases, allergic reactions can be a problem for people sensitive to poultry products. Biosafety is also a potential issue and public relations concern for these materials. Our Chitosan is also being produced cost effectively from bio-fermentation. "

"The potential exists for this technology to compete with these other technologies, and in some cases, new applications that they cannot cost-effectively address. The Aquatrix II system is also being developed as a wound/burn dressing material, transdermal drug delivery vehicle, as well as a bio-adhesive in the company labs. Based on the formulation flexibility of the technology, the inherent product advantages of a no-energy/chemical cross-linker free system there are many other applications for the chemistry. Drugs, other biomaterials like cell cultures, cell growth factors, and DNA can be incorporated into the gel without destroying activity or viability. The data we will gather as part of this agreement will allow us to present our customers with a complete technology safety dossier to accelerate their developments and strengthen their confidence in the value of our products."

"The patented Hydromer Aquatrix II technology is unique chemistry that will enable I-MED Pharma to develop cost-effective, breakthrough products in biosurgery for the global market" said Dr. Ilan Hofmann, President and CEO of I-MED Pharma. "The unique collaboration to jointly confirm the viability of the technology as an alternative to collagen and hyaluronic acid-based materials is symbolic of Hydromer's entrepreneurial approach to developing and executing product applications based on their patent portfolio."

"This event as being our first major step into the emerging field of biotechnology. This win-win agreement we have made with I-MED Pharma will allow us to start realizing the value of the broad range of technologies developed in our company labs in hydrogels and other enabling chemistries", said Manfred Dyck, President and CEO of Hydromer.

Hydromer, Inc. is a technology-based company involved in the research and development and manufacture of specialized polymer and hydrogel products for medical device, pharmaceutical, animal health, cosmetic, personal care, and industrial uses. Please visit their web site at:

I-MED Pharma, Inc. is a privately held company headquartered in Montreal, Canada that was recently ISO 9001, EN 46001 and ISO 13485 certified and has received CE marking on many of their products. I-MED Pharma manufactures, distributes and sells products to the otolaryngology, ophthalmology and biosurgery markets in more than 15 countries. Please visit their web site at:

CONTACT:

Hydromer, Inc.

Joseph Ehrhard, Vice President

908/526-2828