The agreement provides for an initial payment of $3 million upon signing the agreement. Other terms of the agreement were not disclosed.

Servier has a portfolio of approximately 30 drugs, with sales of 1.8 billion Euros and activities in 140 countries.

Dr. Gerard Soula, president and chief executive officer of Flamel, said "We are delighted to have completed this licensing agreement with Servier, a world class company recognized for its research and development of pharmaceutical entities in multiple therapeutic classes. With this announcement, which follows the license agreement we have recently signed with Merck & Co., Inc., we have established the application of our Micropump technology to a new class of drugs, ACE inhibitors. Other compounds for which we have made prior announcements of proof of efficacy include antibiotics, antivirals and antidiabetics."

Flamel Technologies S.A. is a biopharmaceutical company principally engaged in the development of two unique polymer-based delivery technologies for medical applications. Flamel’s Medusa^® nano-encapsulation technology is designed to deliver therapeutic proteins. Micropump^® is a controlled release technology for the oral administration of small molecule drugs. Flamel’s expertise in polymer science has also been instrumental in the development of a photochromic eyeglass lens product now marketed by Corning Inc. 

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 view of 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 Annual Report on the Securities and Exchange Commission Form 20-F for the year ended December 31, 2000.