PFIZER LICENSES BATTELLE PULMONARY THERAPEUTICS DELIVERY TECHNOLOGY, MAKES EQUITY INVESTMENT IN BATTELLE SPINOFF

Battelle Pulmonary Therapeutics, Inc. (BPT) announced today that it has entered into a long-term agreement with Pfizer Inc. to develop drug products to treat pulmonary and systemic diseases.

Under terms of the agreement Pfizer has made an equity investment in BPT and will fund development costs for multiple products. The agreement also provides undisclosed milestone and royalty payments.

Also under the agreement, Pfizer has licensed BPT's novel electrohydrodynamic (EHD) pulmonary delivery technology, and plans to use it as a delivery platform for all of its proprietary drug candidates targeted for pulmonary delivery. Development efforts have been initiated for several compounds.

As part of the agreement, Pfizer and BPT have formed a joint product development committee to guide the development of the candidate drug products. The committee will act as a steward for various products and manage the development process. The joint research efforts will involve Pfizer's main R&D facilities in the U.S. and the U.K.

"It's a real highlight for us to be in collaboration with a major pharmaceutical company of Pfizer's caliber," said BPT President and CEO Dennis Cearlock. "Pfizer's selection of the EHD technology as a platform to deliver its pulmonary drugs represents an important step toward realizing BPT's goal of establishing EHD inhalation devices as the pulmonary delivery technology of choice by the pharmaceutical industry. We look forward to the results of combining the strengths of Pfizer's world-class operation and solid pipeline of pulmonary therapeutic candidates with BPT's promising technologies. We believe this relationship offers tremendous potential for commercializing the next generation of pulmonary therapeutic products."

Janice Beauchamp, BPT's Chief Financial Officer, said, "This collaboration positions us to expand our R&D resource base. We are in a rapid growth phase and plan to add staff to our research operations to expand our capability in support of executing the programs planned for fiscal 2001."

This is the third publicly announced commercialization agreement for BPT in the last 10 months. Others include agreements with Abbott Labs and ViroPharma, Inc. In addition to the announced agreements, BPT has several development programs in negotiation and feasibility research programs in progress. BPT is also developing its own pulmonary delivered oncology products, with the lead compound currently under clinical evaluation.

BPT is a for-profit subsidiary of Battelle. It focuses on developing pulmonary drug products and medical devices for the treatment and prevention of respiratory and systemic diseases.

For more information contact BPT's Mike Placke, VP for Business Development, at (614) 424-4898 or by e-mail at placke@BPT-Inc.com.

Battelle, headquartered in Columbus, Ohio, focuses on technology development and commercialization and product development. With 7,500 employees at more than 60 locations, Battelle develops technologies and products for industry and government. Annual revenues are approximately $1 billion. For more information on Battelle and its technology forecasts, visit Battelle's web site at www.battelle.org, or contact Katy Delaney, Media Relations manager, (614) 424-5544.