Montreal, October 28, 1997 - RTP Pharma Inc., the Canadian operating affiliate of a private U.S. biopharmaceutical company, has received U.S. patent 5,681,816 from the United States Patent and Trademark Office covering a method of inducing temporary paralysis of the gastrointestinal (GI) tract during intestinal examination. The patent covers the use of Vasoactive Intestinal Peptide (VIP) as a tissue relaxant to facilitate specific medical procedures and enhance overall safety.

"The patent broadly secures the use of VIP to induce a temporary paralysis in the GI tract where the recalcitrant problem of contractions and spasms hinder medical procedures," said Indu Parikh, Ph.D., the Chief Scientific Officer of RTP Pharma Inc.

Gary W. Pace, President and CEO of the Company added, "The VIP technology, although not related to our Insoluble Drug Delivery^TM (IDD^TM) technology, represents a significant advance for a whole class of medical procedures and speaks to the strength of our product portfolio. In addition, we intend to conduct clinical studies on VIP then license this product."

The U.S. patent covers the use of Vasoactive Intestinal Peptide (VIP) prior to and during intestinal endoscopy, where the peptide can induce needed and temporary paralysis, thereby potentially enhancing the effectiveness and monitoring capability of this procedure. Additionally, the patent specifies use of VIP in other GI procedures where induced paralysis would be beneficial.

RTP Pharma Inc. is commercializing patented technology, known as Insoluble Drug Delivery^TM (IDD^TM), for the delivery of water insoluble drugs. RTP is initially utilizing IDD^TM technology to target poorly soluble marketed drugs that would otherwise require extensive manipulation to be therapeutically effective in injectable and oral formulations. IDD^TM technology has potential applicability to a broad range of therapeutic classes, including anesthetics, antifungal agents and immune suppressants. RTP Pharma has demonstrated the viability of IDD^TM technology by formulating more than 50 drugs in the laboratory. The Company currently has lead products, including an immune suppressant and an anti-cancer agent, which are currently undergoing Phase I/II studies.

Lucy L. Morrison
Feinstein Kean Partners Inc.
Phone: (617) 577-8110