Addiction Therapies, Inc. And Duke University Announce Exclusive License Agreement For Novel Nicotine Replacement Therapy

Addiction Therapies, Inc. (ATI) and Duke University have signed an exclusive worldwide license agreement for patent rights and technology surrounding a novel form of nicotine replacement therapy. ATI is developing a family of new proprietary smoking cessation products based on the Duke discovery that nicotine can be ingested orally.

"There is a tremendous need for new and improved medications for smoking cessation," said Barbara S. Fox, Ph.D., President and Chief Scientific Officer of Addiction Therapies, Inc. "Tobacco use kills more than 430,000 Americans every year and is the leading preventable cause of death in the United States. Duke's discovery that nicotine can be delivered through oral ingestion opens the door to a whole range of consumer-friendly products that could greatly increase the use of nicotine replacement therapy for smoking cessation."

ATI's lead product based on the Duke technology is The Straw(TM) Nicotine Oral Delivery System. The Straw(TM) is a plastic straw containing micro-particles of nicotine. An individual craving a cigarette sips any beverage through the straw and swallows the nicotine particles along with the beverage. The entire dose is delivered with the first sip. The Straw(TM) is designed to relieve the cigarette craving both by supplying nicotine and by providing manual and oral stimuli. This combination of features, coupled with its quick and convenient dosing, differentiates The Straw(TM) from other existing forms of nicotine replacement therapy. Human clinical trials on The Straw(TM) are expected to start in the fourth quarter of this year.

Dr. Eric Westman, Dr. Jed Rose and Keith Tomlin at Duke University Medical Center have discovered that orally ingested nicotine is well tolerated by human subjects and generates blood levels of nicotine comparable to those achieved by nicotine gum and patch. This discovery resulted in the issuance of U.S. Patent No. 6,211,194 in April 2001.

"This technology provides a platform to develop other nicotine replacement products in addition to The Straw(TM)," stated David C. Dlesk, Chief Executive Officer. "Our mission is to provide a variety of smoking cessation products that will give the greatest number of people the assistance they need to quit smoking. In addition to the nicotine replacement products, we are also developing a novel small molecule, ATI-823, for smoking cessation. ATI-823 is a neurotransmitter reuptake inhibitor that inhibits three of the key neurotransmitters associated with smoking."

Addiction Therapies, Inc. (www.addictiontherapies.com/) is a privately held pharmaceutical company developing medications for smoking cessation, drug addiction and alcoholism. Although addiction is a significant medical and social problem, there are relatively few products on the market or in development for the treatment of addictive disorders. ATI intends to become a leading company developing and selling medications for the treatment of addiction. ATI has three products in development - 2 for smoking cessation and one for cocaine addiction. The development of ATI's cocaine addiction product is supported by $4.7 million in funding from the National Institutes of Health (NIH). Addiction Therapies, Inc. is headquartered in Wayland, Massachusetts.

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the company's (i) technologies, product candidates, intents and goals, and (ii) research and development plans. Forward-looking statements reflect ATI's current estimates with respect to future events. Actual results may vary materially and adversely from those anticipated, believed, estimated, or otherwise indicated.