Dr. Gerard Soula, president and chief executive officer of Flamel said, "It is regrettable that, for strategic reasons, Novo Nordisk has made the decision to cease its participation in what we believe to be a potentially highly successful product. We expect this product can meet an important need for a long-acting human insulin. Now that Flamel is not dependent on Novo Nodisk's decisions, we intend to continue with development work on the product and conduct a second clinical trial to demonstrate the improvements in our new formulation. We also intend to seek actively a new marketing and development partner at an appropriate time."

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.