Flamel Technologies Announces License Agreement with GlaxoSmithKline for Sachet Formulation of Controlled-Release Augmentin^®

Lyon, France, July 8, 2002 – Flamel Technologies S.A. (NASDAQ: FLML)announced today that it has entered into an agreement whereby Flamel has licensed its controlled-release Micropump^® technology to Glaxo Smith Kline ('GSK') in connection with the sachet formulation of its drug Augmentin^®. Flamel will receive an upfront payment of $1.5 million, additional milestones upon achievement of certain events, and royalties on sale of the product. Additional terms of the agreement have not been disclosed.

Dr. Gerard Soula, president and chief executive officer of Flamel, said "Application of our Micropump^® technology to control the release of amoxycilin, a blockbuster antibiotic, proves the value of our technology in a fourth major class of drugs, following our success with drugs for antivirals, antidiabetics and cardiovascular therapies. Additionally, the application of our Micropump^® technology to sachet presentations demonstrates the versatility of our technology, particularly in formats which are appropriate to markets from the pediatric to the geriatric."

Dr. Soula continued: "We are delighted to be able to announce work with GlaxoSmithKline, one of the world's premier pharmacutical companies. We hope that it represents the beginning of a long and mutually productive relationship."

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. Additionally, Flamel has developed new herbicide delivery systems now being tested by Monsanto and has patented a biomaterial, ColCys™.

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.