Ixion awarded NIH grant For Research Aimed at Treating Insulin-dependent Diabetes

ALACHUA, FL, March 5, 2002 - Transplanted pancreatic islets from organ donors significantly reduce insulin dependence and long-term complications of type 1 diabetes. However, availability of donor islets is severely limited, which has resulted in an urgent need to develop renewable sources of islets for insulin-dependent diabetic patients.

Ixion Biotechnology, a biotechnology company working on an adult stem cell-derived source of islets to treat diabetes, announced today that it has received National Institutes of Health funding to test a process that could trans-differentiate human bone marrow stem cells and mesenchymal stem cells into insulin-producing islets. The six-month, $99,000 Small Business Innovation Research (SBIR) grant is for the project entitled "Differentiating Bone Marrow Stem Cells to Cure Diabetes."

"Investigating the feasibility of differentiating human bone marrow stem cells or mesenchymal stem cells into the pancreatic islet pathway may be of major importance in treating insulin-dependent diabetes and in the development of an autologous [putting a patient's own cells back into the patient] therapy," says primary investigator Vijay Ramiya, Ph.D., director of research of Ixion's Diabetes Business Unit.

According to Dr. A.B. Peck, Ixion's chief scientist, who is a consultant on this project, this SBIR Phase I study will characterize human bone marrow for the expression of developmental genes involved in the generation of islets and pancreas following treatments with various factors in vitro and will determine the functional capability of the differentiated cells. "If Ixion successfully completes Phase I, it will lay the foundation for more detailed studies, involving in vivo functional studies in diabetic animal models," Peck says.

In addition to its work in diabetes, Ixion is the world's foremost company specializing in the treatment of excess oxalate conditions such as kidney stones and hyperoxaluria. Q-Med AB (QMED.ST), whose shares are listed on the Stockholm stock exchange, is a major investor in and collaborator with Ixion. For more information about Ixion's current activities, visit Ixion's web site at www.ixion-biotech.com or call 386-418-1428.

This news release discusses historical information and includes forward-looking statements that involve a number of risks and uncertainties, such as risks associated with pre-clinical and clinical development in the biotechnology industry, determinations by regulatory and administrative governmental authorities, competitive factors, technological developments and costs of developing, producing and selling products.

Contacts:

Weaver H. Gaines
Ixion Biotechnology, Inc.
386-418-1428 (voice)
386-418-1583 (fax)
Info@ixion-biotech.com

Lisette Hilton
561-392-5649 (voice)
561-392-7496 (fax)
Info@ixion-biotech.com