Carrington and Veterinary Products Laboratories Enter Into Agreement for Injectable Acemannan Immunostimulant(TM)

* Treatment of Fibrosarcoma (a Form of Soft Tissue Cancer) in Dogs and Cats

* First Major Agreement for Carrington's New Veterinary Division

* Exclusive Sale and Distribution Agreement

* Guaranteed Volumes for a 3-year period

Jan 17, 2007, 00:00 ET from Carrington Laboratories, Inc.

    IRVING, Texas, Jan. 17 /PRNewswire-FirstCall/ -- Carrington
 Laboratories, Inc., (Nasdaq:   CARN) today announced they have signed a term
 sheet with Veterinary Products Laboratories, a division of Farnam
 Companies, Inc., for a supply and trademark agreement for Acemannan
 Immunostimulant(TM), a biologic injectable treatment for fibrosarcoma in
 dogs and cats. Under the agreed upon conditions in the term sheet and the
 ensuing contract, expected to be signed shortly, Carrington agrees to
 supply Acemannan Immunostimulant(TM) to VPL under an exclusive agreement
 for a period of up to three (3) years. During that period, VPL will be
 responsible for the exclusive sales and distribution of the product.
     Kirk Meares, Vice President of Carrington's newly formed Veterinary
 Medical Division stated, "This term sheet is the first major agreement for
 the Veterinary Medical Division and guarantees annual revenues from
 Acemannan Immunostimulant(TM). Additionally, VPL's twenty years of industry
 experience and strong distribution network provides Carrington with
 national access to veterinarians whose patients can benefit from Acemannan
 Immunostimulant(TM). We look forward to developing a close working
 relationship with VPL."
     In 1991, the USDA granted Carrington conditional approval to market an
 injectable form of a complex carbohydrate as an aid to surgery in the
 treatment of canine and feline fibrosarcoma, a form of soft tissue cancer,
 under the name of Acemannan Immunostimulant(TM). The product was
 conditionally approved based on safety and efficacy studies. Carrington was
 successful in meeting the USDA requirements for removal of the conditional
 status, and an unrestricted license was issued in July 2000.
     About Acemannan Immunostimulant(TM)
     Acemannan Immunostimulant(TM) consists of long-chain polydispersed B-
 (1,4)- linked mannan polymers interspersed with O-acetyl groups. Acemannan
 Immunostimulant is indicated for use in the dog and cat as an aid in
 treatment ( and clinical management of fibrosarcoma. Acemannan
 stimulates macrophage to release Tumor Necrosis Factor (TFN), Interleukin-1
 (IL-1) and Interleukin-6 (IL-6), triggers an increase in natural killer
 cell and cytotoxic T-Cell activity, potentiates cellular and humoral
 immunity and increases macrophage release of Nitric Oxide (NO) that
 contribute to tumor breakdown. This action extends patient survivability
 when used as an adjunct to surgery in the treatment of canine and feline
 fibrosarcoma and improves tumor margination without the typical side
 effects associated with chemotherapy and radiation.
     About Veterinary Products Laboratories
     VPL is a manufacturer of wound management, behavioral, nutritional, and
 insecticidal products, as well as medical devices for the veterinary
 community. Over the last 20 years, Veterinary Products Laboratories has
 successfully brought to market products such as D.A.P. (R) Dog Appeasing
 Pheromone Diffusers, Feliway(R) Diffusers and Spray, Duraclactin(R), a new
 approach for chronic inflammation, VPL Sutures and Tissumend II, the first
 synthetic absorbable tissue adhesive. The Mycodex (R) and Adams (TM) lines
 are the most recognized names in shampoos and sprays. VPL is the exclusive
 partner for BD (Becton Dickinson) medical devices in the Unites States.
 Through partnerships with our distributors, VPL reaches veterinary clinics
 across the entire United States.
     About Carrington
     Carrington Laboratories, Inc. is an ISO 9001-certified, research-based,
 biopharmaceutical and consumer products company currently utilizing
 naturally- occurring complex carbohydrates to manufacture and market
 products for mucositis, radiation dermatitis, wound and oral care, as well
 as to manufacture and market the nutraceutical raw material Manapol(R) and
 cosmetic raw material Hydrapol(TM). Carrington also manufactures and
 distributes a complete line of wound care products for the professional
 veterinarian through its Veterinary Medical Divison (CarraVet(R) Wound Care
 and the new EquineVet(TM) Advanced Wound Therapy for horses). Carrington
 also manufactures and markets consumer products and manufactures quality
 products for other companies. Manufacturing operations comply with cGMP
 standards. DelSite Biotechnologies, a subsidiary of Carrington, is
 developing its proprietary GelSite(R) technology designed to provide
 controlled release of peptide and protein-based drugs. A platform
 technology for a powder nasal delivery system is being developed for
 vaccine with emphasis and funding from the US HHS for the H5N1 (Bird Flu)
 Antigen. Carrington's technology is protected by more than 130 patents in
 26 countries. Select products carry the CE mark, recognized by more than 20
 countries around the world. For more information, visit .
     Certain statements in this release concerning Carrington may be
 forward- looking. Actual events will be dependent upon a number of factors
 and risks including, but not limited to: subsequent changes in plans by the
 Company's management; delays or problems in formulation, manufacturing,
 distribution, production and/or launch of new finished products; changes in
 the regulatory process; changes in market trends; and a number of other
 factors and risks described from time to time in the Company's filings with
 the Securities & Exchange Commission, including the Form 10-Q, filed
 November 14, 2006.

SOURCE Carrington Laboratories, Inc.