Eurand has signed a definitive licensing agreement with Kyowa Hakko Kogyo Co. Ltd. for a marketed, fast melt drug delivery technology. Under the terms of the agreement, Eurand will acquire worldwide pharmaceutical rights to an orally administered fast melt tablet technology as well as the manufacturing processes for the product.

The fast dissolve market has experienced significant growth as fast dissolve products offer patients convenient dosage forms that dissolve quickly in the mouth without chewing or the need for water. This dosage form will allow patients to take their medications anytime, anywhere. Eurand intends to market this product in combination with Microcaps, the Company's proprietary taste masking technology, once the fast melt technology is fully integrated.

"For the past 30 years, Eurand has been the industry leader in taste masking, and we have developed more than a dozen marketed products using our Microcaps technology. We believe that the combination of our new fast melt technology and our unparalled taste masking ability allows us to provide our customers with the dual advantage of convenient dosage forms that have a superior taste that their patients will appreciate," said Gearóid Faherty, Chief Executive Officer of Eurand.

Eurand's new fast melt technology, which will be fully integrated by the end of the second quarter of 2003, is an orally administered fast dissolving dosage form. The technology is broadly applicable and can be used with both soluble and insoluble products. The tablet is produced using a proprietary system that uses 10-30 times less hydrophobic lubricant than conventional tablet production. The resultant tablet is both hard and durable yet does not impede liquid entry upon contact with saliva. Additionally, the tablet does not contain water-insensitive cohesive bonds between particles to hinder disintegration.

"This technology is different from the competition in that while it offers a first class fast melt tablet in terms of speed of disintegration, it is both easy to produce and more robust than other fast melt tablets. The tablets, which can handle high drug loading and coated drug particles, can be packed in both bottles and push through blisters," continued Faherty.