BeautiControl Settles Pending Patent Infringement Litigation with NeoStrata Company Subsidiary TriStrata Technology, Inc

Business Wire, Sept 28, 2004

PRINCETON, N.J. -- NeoStrata Company, Inc.'s subsidiary, TriStrata Technology, Inc. ("TTI") and BeautiControl, Inc. ("BCI") have settled patent infringement litigation that was pending between the two companies in the United States District Court for the District of Delaware.

The settlement resolves litigation concerning TTI's claim of patent infringement arising from BCI's alleged use of certain patents owned by TTI relating to the use of alpha hydroxyacids (AHAs) for the reduction of human skin wrinkles and the alleviation of the signs of dermatological aging. The settlement includes a license agreement, the financial terms of which are confidential. TTI still has pending suits against Valeant (ICN), as well as Mary Kay(R) Cosmetics.

Richard H. Wildnauer, Ph.D., president of TTI's parent NeoStrata Company, Inc., remarked, "We are pleased to have a direct market leader and innovator such as BeautiControl join the growing list of TTI's licensees on terms that we believe are mutually beneficial to both companies."

BeautiControl, a direct selling company, manufactures and distributes premium beauty and skin care products, cosmetics, bath and body care, fragrances, and related products.

TTI was represented in the settlement by Kevin M. McGovern, Esq. and Brian T. Foley, Esq. of McGovern & Associates, Greenwich, CT.

BeautiControl joins the growing list of pharmaceutical and cosmetic companies that have licensed certain aspects of TTI's AHA technology. These include Allergan, Avon, Boots, Bristol-Myers Squibb, Beiersdorf, Canderm Pharma, Chanel, Cognis, Cosmederm, Conopco, (a subsidiary of Unilever), Elizabeth Arden, Erno Lazlo, Genesis Pharmaceutical, Inc. (a subsidiary of Pierre Fabre Dermo Cosmetique USA), Guthy Renker, Johnson and Johnson, L'Oreal, Merz Pharmaceuticals, M.D. Beauty, Nucelle Inc. and Summers Labs. Licensing dermatological companies include Dermik, Medicis, Stiefel, Stratus Pharmaceuticals, Taro Pharmaceuticals and Valeant (ICN).

About NeoStrata

NeoStrata Company, Inc. is a research-based dermatological company dedicated to the advancement of skin care and dermatological products. It is the medical community's internationally recognized leader in developing alpha-hydroxyacid technology and formulations. It holds more than 120 patents, many licensed by over 40 pharmaceutical and cosmetic companies. NeoStrata has been ranked in the top 50 biotechnology firms in New Jersey by NJBIZ. NeoStrata also markets the NeoStrata(R) brand of skin care products to dermatologists and plastic surgeons in over 55 countries. It also markets prestige retail brands including Exuviance(R) skin care as well as CoverBlend(R) by Exuviance - a breakthrough line of medically developed, concealing treatment cosmetics to conceal and correct all types of visible skin imperfections. For more information, visit http://www.neostrata.com or call 1-800-225-9411.