NeoStrata, Inc. Continues Penetration of National Retail Market with Double-Digit Growth Increases

NeoStrata Adds Elder-Beerman Stores, Extends Bon-Ton Reach and Continues to Increase Sales at Dillards, Nordstroms, Sephora and Ulta Stores Around the Country

CONTACTS: CPRi Communications

Jeff Jacomowitz, 201-641-1911 x18

jjacomowitz@cpronline.com

FOR IMMEDIATE RELEASE

NeoStrata, Inc. Continues Penetration of National Retail Market with Double-Digit Growth Increases

NeoStrata Adds Elder-Beerman Stores, Extends Bon-Ton Reach and Continues to Increase Sales at Dillards, Nordstroms, Sephora and Ulta Stores Around the Country

PRINCETON, N.J. -- July 30, 2002 -- Despite the uncertainties of todays economy, the timeline of success for NeoStrata, Inc., continues, with the company reporting double-digit sales increases, substantiating accelerated consumer demand for NeoStratas Exuviance and CoverBlend products.

Exuviance is a comprehensive line of patented, quality skin care products that rely upon Alpha-hydroxyacid (AHA) technology to help produce more supple, flexible skin that is soft, smooth, moisturized, healthy and radiant. CoverBlend by Exuviance is uniquely positioned as a prestige line of concealing makeup from NeoStrata for a well-defined niche market: the 7 to 10 percent of the population that suffers from chronic skin conditions that cannot be cured, but can be camouflaged.

Strong in-store presence, including at-counter events, merchandising and extensive sampling of NeoStratas Exuviance skin care products and CoverBlend Concealing Treatment makeup line, along with synergistic advertising and publicity of the two brands, is driving our success," states Lynda Farrington Wilson, NeoStratas vice president, U.S. Market Development. Our professional-level product offerings have defined a unique niche, positioning our brands among strong regional retailers, specialty stores and up-scale salons with our retail market penetration and bridging our professional presence in physicians offices. The one upside of this recession-like economy is that the strongest brands will flourish (and even grow), and the weaker brands will eventually be phased out. This success has paved the way for the recent addition of Elder-Beerman to our NeoStrata family of retail stores."

Exuviance by NeoStrata is an advanced skin care system that helps regenerate and

enhance the appearance of the skin by stimulating the process of exuviation -- the natural process of both exfoliation and stimulation of new cell growth. Created for the consumer market and introduced in 1996 by Drs. Van Scott and Ruey Yu, the discoverers and patent holders of Alpha-hydroxyacid (AHA) technology, the Exuviance system includes Regular, Sensitive and All Skins Formula and Treatment products to meet the needs of all skin types.

According to Ms. Wilson, NeoStratas Exuviance and CoverBlend products will now be featured in 21 Elder-Beerman stores, a new national account for NeoStrata, as well as an additional 24 Bon-Ton stores, extending its penetration with this well-respected niche retailer. NeoStrata products are experiencing both increased sales figures and increased door expansion at Dillards, Nordstroms, Sephora and Ulta locations nationally.

Todays volatile economy levels the playing field for NeoStrata, allowing us to compete quite favorably with larger, broad-based cosmetic firms that are forced to narrow distribution and slash marketing and advertising budgets," explains Richard H. Wildnauer, Ph.D., president of NeoStrata. As a mid-sized, research-focused dermatological company, NeoStrata operates a lean organization with select distribution, committed to its mission to educate the public about the benefits of AHA formulations and aggressively promote the advancement of skin care."

NeoStrata traditionally partners with its retailers, establishing a powerful community bond that links educational opportunities, advertising, store promotions and in-store product demonstrations.

For more information about NeoStratas Exuviance products, consumers can ask their skin care professionals at Elder-Beerman, Bon-Ton, Dillards, Nordstroms, Sephora and Ulta; call 1-800-628-9904; or visit www.neostrata.com.

About NeoStrata

NeoStrata Company, Inc. is a research-based dermatological company dedicated to the advancement of skin care and dermatological treatments. It is the medical communitys internationally recognized leader in developing Alpha-hydroxyacid technology and formulations. NeoStrata has been ranked 17th in NJBIZs top 50 biotechnology firms in the state of NJ. NeoStrata markets CoverBlend by Exuviance -- a breakthrough line of medically developed, prestige concealing treatment cosmetics with exclusive, proven, patented technology. CoverBlend by Exuviance has been medically developed to conceal and correct all types of visible skin imperfections -- from minor flaws to major discolorations -- while providing anti-aging treatment and broad-spectrum sunscreen protection. CoverBlend is one type of non-surgical option for children and adults who choose to conceal their very special mark" and reveal it in their own time.

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