Hyalose L.L.C. Signs Agreement with Novozymes A/S


AUSTIN, Texas/OKLAHOMA CITY, Aug. 29, 2001 (PRIMEZONE) -- Emergent Technologies, Inc. (ETI) announced today that one of its companies, Hyalose, L.L.C. of Oklahoma City, has closed on a Joint Development and Option Agreement with Novozymes A/S, the world leader in the production of industrial enzymes. Novozymes A/S is a spin-off of Novo Nordisk A/S (NYSE:NVO).

Hyalose, L.L.C., was formed and capitalized last year by Emergent - OU, Ltd. The company was created to commercialize technology developed by Dr. Paul Weigel and Dr. Paul DeAngelis of the OU Medical Center (OUMC) in Oklahoma City, Oklahoma. OU licensed the technology to Hyalose and has retained an equity interest and royalty stream in the company.

Novozymes has taken an option to genetically produce Hyaluronic Acid (HA) or variations thereof based on patented recombinant technology developed by the Hyalose Chief Scientists. HA, a naturally occurring substance produced in the body and found in the skin, joints and eyes, diminishes with age. Artificially produced hyaluronic acid is commonly used in a wide range of medical applications, but has been difficult and expensive to produce. HA made using Hyalose's technology is less expensive yet results in a higher quality, more consistent product. Current medical uses for HA include the treatment of arthritis, and it is widely used in eye surgery, urology, wound healing, and scar reduction applications. Anti-wrinkle creams and other topical skin care products and cosmetics are also made with HA. Annual sales for products incorporating HA amount to more than $1 billion.

Hyalose will receive $8-10 million if all options and milestones are met in addition to royalties from the commercialization of the products in the market.

Tommy Harlan, CEO of ETI, commented, "We are delighted to be working with Novozymes. Their world class expertise in fermentation complements our recombinant technology for the production of HA."

Rick Hodgins, CEO of Hyalose, continued: "We are very optimistic that Novozymes will be an important player in the production of HA which will be purer, safer and of higher quality than what is currently available in the marketplace."

Cheryl McMurry Choumbakos, President of Emergent Technologies Oklahoma, L.P., noted, "This is an excellent example of the quality of the partnering arrangements ETI creates. The outstanding technology developed at the OUMC combined with ETI's management experience and expertise has resulted in another Oklahoma City biotech company entering the international marketplace."

"Creating revenue streams and equity positions has been the centerpiece of technology transfer at OU under Dr. Skip Porter's leadership," Ms. Choumbakos continued. "The effectiveness of the tech transfer program John Hughey has developed is impacting the university and the state in very positive economic terms while creating unprecedented investment opportunities. We are delighted with the growth and progress of Hyalose as well as with Pure Protein, our other biotech company, and their potential for wide commercial recognition and investment return."

For more information on Hyalose, L.L.C. visit its website at www.hyalose.com.

For more information on ETI and its portfolio companies visit its website at www.emergenttechnologies.com or contact Ms. Choumbakos at (405) 228-0789 or contact James Ehrlich, Vice President - Capital Acquisition and Investor Relations at (512) 263-3232, Ext. 206, in Austin, Texas. For the University of Oklahoma Office of Technology Development, contact Isaac O'Bannon at (405) 325-3757.

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CONTACT:  Emergent Technologies, Inc., Austin
          Cheryl McMurry Choumbakos
          (405) 228-0789 

          James Ehrlich, Vice President - Capital Acquisition
              and Investor Relations 
          (512) 263-3232 ext. 206, 
          www.emergenttechnologies.com