Endovasc Ltd., Inc.: Biotech Company with the Only Angiogenesis Drug Approved for FDA Phase III Human Clinical Trials Creates a New Subsidiary

Montgomery, Texas, UNITED STATES

MONTGOMERY, Texas, Sept. 17, 2002 (PRIMEZONE) -- Endovasc Ltd., Inc. (OTCBB:ENVC) announced today that in accordance with its new business model, the company has established a new subsidiary, Angiogenix Development Corporation, for its potential blockbuster nicotinic acetylcholine receptor agonist drug -- ANGIOGENIX(tm). Endovasc is well ahead of all other biotech firms in bringing an angiogenesis drug to the market. The company's larger competitors, Genentech (NYSE:DNA) and Genzyme (Nasdaq:GENZ) are still in Phase II trials with their angiogenesis treatments and are experiencing various challenges, whereas Endovasc's treatment has already been approved for FDA Phase III human clinical trials.

ANGIOGENIX(tm) is a new and revolutionary nicotine-based drug that may grow new blood vessels and promote angiogenesis and subsequent renewal of heart function. In recent studies, test animals actually grew new blood vessels in their heart after blood flow was constricted to produce a condition modeling chronic myocardial ischemia, which afflicts millions of Americans. ANGIOGENIX(tm) was co-developed by Professor John P. Cooke of Stanford University, which has granted Endovasc a worldwide, exclusive license to the patent for the treatment.

"This represents an important milestone for Endovasc and its shareholders. By spinning off Angiogenix into a separate company, we will be able to realize several huge advantages. The new entity is completely debt free and has an exclusive focus on ANGIOGENIX(tm), our potential blockbuster drug for the largest segment of the pharmaceutical market. This makes it exponentially easier for us to obtain the financing necessary to expeditiously take ANGIOGENIX(tm) through the Phase III trials. We believe Angiogenix Development Corporation will also be able to attract the industry heavyweights with the 'right stuff' to run its day-to-day operations," says Dr. David P. Summers, Chief Executive Officer of Endovasc Ltd., Inc.

In addition, any funding received by Angiogenix Development Corporation will not dilute Endovasc stock, nor will it create debt for Endovasc. In the future, by board resolution, Endovasc shareholders of record will receive a distribution of stock, subject to the customary regulatory approvals and the filing of the necessary registration statement.

"We are in the process of transferring our technologies, patents and licensing agreements to Angiogenix Development Corporation. Stanford University has licensed us exclusive worldwide patent rights for this treatment, and the U.S. Patent Office granted us (as exclusive licensee) full patent protection (US Patent 6,417,205) earlier this summer," states Summers.

According to its new business model, Endovasc focuses on taking on promising drug candidates at the end of the discovery phase and then conducting a fast track program for the technical and early clinical development phases, covering Phases I and II of the compound. The fact that Endovasc has been able to get two potential blockbuster drugs all the way to Phase III trials without incurring any significant debt, in near record time, proves this model shows tremendous potential.

Currently, the company has two products approved for Phase III FDA human clinical trials: ANGIOGENIX(tm), a nicotine-based treatment that grows new heart vessels, and Liprostin(tm), a liposomal prostaglandin-based treatment that studies suggest will prevent restenosis (re-blockage of arteries), increase circulation, and reduce leg pain due to poor blood flow. Endovasc's other products include biodegradable stents, drug-delivery stents and newly discovered nutriceutical applications that may accelerate development of muscle mass and treat obesity in overweight diabetic women. Endovasc believes that its nutriceutical nicotine-based drinks, fitness bars or capsules (which, according to the company, will contain nicotine levels too low to be habituating or to cause the typical euphoria effects from smoking) combined with high protein complexes could become blockbuster nonprescription products, producing positive cash flow even sooner than its later stage drugs because they are not subject to the FDA approval process.

Endovasc Ltd., Inc., established in 1996, is a biotechnology company focused in the area of cardiovascular disease, pioneering drug delivery technology designed to deliver and release drugs to their intended targets in an efficient and controlled manner. The Company's pipeline of products and processes include: Liprostin(tm), ANGIOGENIX(tm), PROStent(tm) stent-coating technology, and a biodegradable resorbable stent prosthesis.

The foregoing statements are made under the "Safe Harbor" Private Securities Litigation Reform Act of 1995 and may contain forward-looking statements that involve risks and uncertainties that may not be evident at the time of this release. For more information about Endovasc, please visit www.endovasc.com (Investor questions and requests for materials can be submitted online.)


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