Flamel Technologies, Inc

Flamel Technologies Receives $1 Million for Development Project

Lyon, France, December 1, 1999 – Flamel Technologies S.A. (Nasdaq: FLML) today announced receipt of $1 million from an undisclosed multinational pharmaceutical company. The non-refundable payment is related to a development project involving the Company’s patented Medusa® delivery technology for therapeutic proteins and peptides. No further details were released.

Receipt of this payment and additional funds from the Company’s other contracts are expected to provide sufficient cash to maintain the Company’s existing operations into the first quarter of the year 2000. At September 30, 1999, Flamel had $3.6 million in cash and equivalents and no short-term investments. To address the ongoing need for funding, the Company is continuing to explore various financing options as well as strategic alternatives.

Flamel also announced that it is restructuring its Board of Directors and is seeking to attract additional directors with industry experience to replace representatives of financial investors. Recently, directors representing Financiere Industrielle Gaz et Eaux, an affiliate of Bank Lazard, and E. M. Warburg, Pincus & Co., Ltd. have stepped down from the Flamel Board.

Flamel Technologies is engaged in the development of advanced polymer technologies for unique life science applications. To meet important medical needs and develop commercially valuable products, the Company is building on its principal technology platforms: the controlled release of therapeutic drugs and proteins with its Micropump^® and Medusa^® systems; the efficient delivery of agrochemical active ingredients with its Agsome™ system; ColCys™ biomaterial-based medical devices; and photochromic materials for eyeglass lenses.

Agsome™, Basulin™ and ColCys™ are trademarks, and Micropump^® and Medusa^® are registered trademarks of Flamel Technologies.

This document contains a number of matters, particularly as related to the status of various research projects and technology platforms, that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The presentation reflects the current views of Flamel’s management with respect to future events and is subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. These risks include risks that products in the development stage may not achieve scientific objectives or milestones or meet stringent regulatory requirements, uncertainties regarding market acceptance of products in development, the impact of competitive products and pricing, and the risks associated with Flamel’s reliance on outside parties and key strategic alliances. These and other risks are described more fully in Flamel’s Form 20-F for the period ended December 31, 1998.