Encapsulation Systems Previews the U-Strip(TM) Insulin Patch, the Next Generation of Transdermal Drug Delivery for the Treatment of Diabetes

Step Aside Needles and Inhalants, the U-Strip Will Empower Millions of Diabetics With the First Wearable, Programmable and Non-Invasive Drug Delivery System


CHICAGO, IL--(Marketwire - June 22, 2007) - ADA's 67th Annual Scientific Session, Booth #848 -- Encapsulation Systems Inc. (ESI) www.encsys.com, an innovator in controlled delivery systems, announces today that it will showcase the U-Strip Insulin System, a programmable transdermal drug delivery patch, at the American Diabetes Association's 67th Annual Scientific Session from June 22-26th at Booth #848 at the McCormick Place Convention Center. This breakthrough technology will provide millions of diabetics with the first wearable, programmable and non-invasive insulin delivery system that eliminates painful needles and promises improved compliance with the automatic "set-it-and-forget-it" design of the system.

"The U-Strip Insulin Patch is an ultrasonic drug delivery system using an alternating sonic transmission to effect pore dilation and deposit large molecule drugs into the dermis," says Bruce K. Redding, Jr., President and CEO, Encapsulation Systems, based in Havertown, Pennsylvania. "Although our primary market is Type 2 diabetics, our insulin delivery transdermal patch is able to deliver a basal and bolus dose of insulin under a programmable regimen to both Type 1 and Type 2 diabetics."

"While the U-Strip Insulin Patch is in Phase-2 clinical trials and not yet approved for human use by the FDA, I believe the U-Strip will provide a major breakthrough in the transdermal delivery of insulin for Type 2 diabetics," states Dr. Rex Kessler, endocrinologist and Director of Research at the Kessler Research Institute in Media, PA. "Compared to insulin injections and continuous subcutaneous delivery systems, transdermal delivery eliminates the pain associated with these invasive methods. The ultrasonic applicator unit records the dose delivered and stores the information for 60 days. The U-Strip Insulin Patch enhances patient compliance because of a programmed insulin drug delivery profile and ease of use."

HOW THE U-STRIP INSULIN PATCH WORKS:

The U-Strip is a patent pending drug delivery system consisting of 3 components: the sonic applicator module, the battery strap and the modified transdermal patch.

--  Transdermal Patch is specially designed to hold the target drug.
--  Sonic Applicator Module is a programmable ultrasonic transmitter that
    fits directly above the patch.  The ultrasonic transmitter can be
    programmed to deliver a constant or pulse of ultrasonic energy, through the
    transdermal patch.  Ultrasound from the Sonic Applicator Module pushes the
    drug (insulin) contained within the patch through the skin.
--  A rechargeable battery system is located within the strap, which holds
    the ultrasonic transmitter over the patch.
    
U-STRIP ADVANTAGES:

The U-Strip offers a number of advantages to both the patient and to medical professionals which include:

--  Non-Invasive - No needles are required with this totally non-invasive
    drug delivery system.
--  Safe and effective - U-Strip controls the patient's medication so
    there is less change of over/under dosage.
--  Direct bloodstream absorption - This on-demand delivery system
    bypasses the stomach and the intestine where drug potency can be destroyed.
--  Individualized drug regimen - Medical professionals can easily
    individualize drug regimen tailored for each patient's needs.
--  Easy to Follow - The automatic drug delivery ensures heightened
    compliance for pediatric and elderly patients, because there is nothing to
    remember and no schedules to follow. Patients simply "Set it and Forget it"
    and ensure their drug regimen is more easily followed.
--  Additional Pharmaceutical Applications - The U-Strip technology may
    open the door to a number of advanced pharmaceutical delivery applications
    for other chronic medical conditions.
    
BACKGROUND:

The National Diabetes Information Clearinghouse reports that there are "20.8 million children and adults in the United States, or 7% of the population, who have diabetes," a disease in which the body does not produce or properly use insulin, the hormone needed to convert sugar, starches and other food into energy needed for daily life. There are two major types of diabetes, Type 1, which results from the body's failure to produce insulin, and Type 2, which results from insulin resistance (a condition in which the body fails to properly use insulin). Most Americans who are diagnosed with diabetes have Type 2 diabetes.

Treatment for diabetes varies depending on the type of diabetes one has been diagnosed with, ranging from insulin injections/pumps, which are sometimes painful, to daily oral drug regimens. For most diabetic patients treatment methods and drug delivery systems can often be cumbersome and frustrating.

THE FUTURE - U-STRIP INSULIN SYSTEM

The U-Strip™ is a patent pending drug delivery system in Phase-2 clinical trials that is not yet approved for human use by the FDA. However, the development of a programmable, portable, ultrasonic instrument will extend the number and types of drugs that can be given with the transdermal patch.

"For almost 20 years we have been the leader in specialty controlled release products for use in food, pharmaceuticals and medical devices," adds Redding. "However, the U-Strip Insulin System marks a milestone in our company's history by opening the door to a number of advanced pharmaceutical delivery applications and demonstrates our investment and ongoing commitment in research and development."

ABOUT ENCAPSULATION SYSTEMS INC:

Founded in 1988, Encapsulation Systems Inc. www.encsys.com (ESI) is a private company specializing in the development and commercialization of specialty controlled release products for use in the food, pharmaceutical and medical device fields. A major innovator of controlled delivery systems since its inception, ESI has 11 patent applications pending in the United States and internationally and has claimed 57 new inventive concepts regarding the U-Strip Technology.

B-Roll includes visuals of the U-Strip Insulin patch and interviews with:

Bruce K. Redding, creator of U-Strip Insulin Patch and president/CEO, Encapsulation Systems.

Rex Kessler, M.D. Endocrinologist, Kessler Research Institute, Principal Investigator U-Strip Human Pilot Trial 2

Ms. Bo Michniak-Kohn, Ph.D., Associate Professor Pharmaceutics, Rutgers, State University of New Jersey, U-Strip Scientific Advisory Board Member

FOR B-ROLL - Please call Nancy Tamosaitis, Vorticom Inc. 212.532.2208 or email nancyt@vorticom.com for b-roll. The launch press release announcing the company's human pilot trial results is also available by calling 212.532.2208.

Contact Information: Media Contacts: Nancy Tamosaitis 917.371.4053 (mobile) 212.532.2208 (office) Carolyn Marquez 347.885.6722 (mobile)

U-Strip Insulin Patch, the next generation of transdermal<br>drug delivery for the treatment of diabetics,<br>at Chicago's American Diabetic Association this week.