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October 8, 2003

Neurotech Announces Initiation of a Phase I Clinical Trial to Evaluate the Safety of Ciliary Neurotrophic Factor Implant in the Eye

Lincoln and Paris, October 8, 2003 - Specialized in the development of innovative technologies for the treatment of retinal diseases, Neurotech S.A., a biotechnology company headquartered in Paris and its American subsidiary, Neurotech USA, Inc., announced today the initiation of a Phase I clinical trial of NT-501, its lead Encapsulated Cell Technology (ECT) product for the treatment of Retinitis Pigmentosa (RP). The NT-501 device is an intraocular, polymer implant containing human retinal epithelial cells genetically modified to secrete Ciliary Neurotrophic Factor (CNTF). The implant is designed to continuously release CNTF directly in the eye to the diseased retinal tissue for sustained periods of time. The trial will evaluate the safety of the CNTF implant and will be conducted at the National Eye Institute in Bethesda, Maryland.

Because intraocular delivery of CNTF has not been tested in patients before, this initial trial will test the drug and the ECT device in 10 pre-selected patients with late-stage RP. If this trial confirms safety, a Phase II trial will then test the ability of the treatment to preserve vision in earlier stage RP patients.

"This study represents an important and historic advancement regarding the clinical evaluation of a novel drug therapy for Retinitis Pigmentosa", said Bernard Chauvin, Chairman of the Board.

RP is an inherited degenerative eye disease with no effective treatment options. Usually, the disease is diagnosed in young adults who experience a loss of peripheral vision and night blindness. In time, those afflicted with RP typically face a slow and irreversible loss of sight following diagnosis. There are approximately 1 million people worldwide with the disease. CNTF, a natural neuroprotective protein, has been shown in a variety of animal models to protect against the loss of photoreceptors. However, delivery of therapeutic proteins into the eye is complicated by a number of issues. First, the blood-retina barrier prevents oral or intravenous administration. Secondly, repeated injections of CNTF directly into the eye on a weekly or monthly basis represent an impractical therapeutic option.

The NT-501 implant facilitates delivery of the therapeutic molecule directly to the target site within the eye in a sustained manner, thereby circumventing the aforementioned delivery problems. Pre-clinical studies have demonstrated that the NT-501 implant effectively protected photoreceptors in the retina from degeneration, and it consistently delivered CNTF into the eye for a year. The neuroprotective effect was dose-dependent with greater protection observed with higher doses. In addition, the implanted capsules were well tolerated and retained function during the implant period.

"The initiation of this phase I study is an important milestone in the development of Neurotech's lead ophthalmic ECT product for retinal degeneration," said Bernard Davitian, Neurotech's CEO. "The National Eye Institute's study represents an opportunity to establish the safety of a novel therapeutic protein delivery platform that may be applied in disease intervention for RP and other degenerative diseases of the retina. We are grateful for the support from the National Eye Institute and the Foundation Fighting Blindness in helping us to get this trial underway."

Retinal diseases such as age-related macular degeneration and diabetic retinopathy represent a major unmet medical need in ophthalmology and affect millions of patients throughout the world. To treat these diseases, Neurotech is developing ECT products to deliver a variety of therapeutic factors, including a novel and potent anti-angiogenic factor in a controlled, continuous manner into the eye. These products are designed to overcome the drug delivery issues associated with the blood-retina barrier while circumventing the problems associated with repeated ocular injections.

Neurotech is supported in its scientific and business strategies by world experts in ophthalmology and by a group of international investors. Among the investors, Apax Partners, Merlin Biosciences, GIMV and CDC-Innovation have representatives on the company's Board of Directors.

For further information please contact :

Ted Danse, CEO
Neurotech

Phone: 1 401 333-3880 x3116

Email: t.danse@neurotechusa.com





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