SCOLR Pharma, Inc. and Dr. Reddy's Laboratories Enter into Collaboration and License Agreement

Business Wire, Oct 23, 2007

BELLEVUE, Wash. -- SCOLR Pharma, Inc. (AMEX: DDD) today announced that it has entered into a collaboration and license agreement with Dr. Reddy's Laboratories (NYSE:RDY), an emerging global pharmaceutical company. The parties will pursue the development and commercialization of an undisclosed oral prescription drug with significant potential for the cardiopulmonary market utilizing SCOLR Pharma's CDT[R] technology.

Under the terms of the agreement, Dr. Reddy's will be responsible for the development, manufacturing and marketing of the drug product. SCOLR Pharma will be responsible for the formulation and assisting with product scale-up activities. The agreement provides double digit participation in net profits for SCOLR Pharma after recovery of development and commercialization expenses associated with the potential product. Other financial terms of the agreement have not been disclosed.

Daniel O. Wilds, President and CEO of SCOLR Pharma, Inc., said, "We are very pleased that Dr. Reddy's has chosen to establish a relationship with SCOLR Pharma and has recognized the strength of our drug formulation platform. We hope that this is the first of several development targets suitable for future collaboration. Our research has demonstrated the applicability of our CDT technology to improve the release profile and increase the oral bioavailability of poorly soluble existing and new drug compounds. We believe that these capabilities address some of the greatest challenges the pharmaceutical industry faces for more effective oral delivery of pharmaceutical products. As a global pharmaceutical company with significant expertise in manufacturing, sales, marketing, and product commercialization, Dr. Reddy's is a compelling and complementary development partner for SCOLR."

About SCOLR Pharma:

Based in Bellevue, Washington, SCOLR Pharma, Inc. is a specialty pharmaceutical company. SCOLR Pharma's corporate objective is to combine its formulation expertise and its patented CDT platform to develop novel pharmaceutical, over-the-counter (OTC), and nutritional products. Our CDT drug delivery platform is based on multiple issued and pending patents and other intellectual property for the programmed release or enhanced performance of active pharmaceutical ingredients and nutritional products. For more information on SCOLR Pharma, please call 425.373.0171 or visit http://www.scolr.com/.> This press release contains forward-looking statements (statements which are not historical facts) within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties, including activities, events or developments that we expect, believe or anticipate will or may occur in the future. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including our ability to successfully develop new formulations and complete research and development, including pre-clinical and clinical studies, our ability to raise additional funds, the continuation of arrangements with our product development partners and customers, competition, government regulation and approvals, and general economic conditions. For example, if our clinical trials are not successful or take longer to complete than we expect, we may not be able to develop and commercialize our products. And we may not obtain regulatory approval for our products, which would materially impair our ability to generate revenue. Additional assumptions, risks and uncertainties are described in detail in our registration statements, reports and other filings with the Securities and Exchange Commission. Such filings are available on our website or at www.sec.gov. You are cautioned that such statements are not guarantees of future performance and that actual results or developments may differ materially from those set forth in the forward-looking statements. We undertake no obligation to publicly update or revise forward-looking statements to reflect subsequent events or circumstance.