Dendritic NanoTechnologies, Dow and Starpharma Sign Major Three-Way Deal to Commercialize Nanotechnology

Dow Stake Positions DNT and Starpharma as Leading Developers of

Nanotechnologies for the Pharmaceutical, Biotechnology Industries

Jan 25, 2005, 00:00 ET from Dendritic NanoTechnologies Inc.

    MOUNT PLEASANT, Mich., Jan. 25 /PRNewswire/ -- Dendritic NanoTechnologies
 Inc. (DNT), The Dow Chemical Company (NYSE:   DOW), and Starpharma
 (ASX: SPL, USOTC: SPHRY) of Melbourne, Australia, have reached an agreement
 that provides DNT and Starpharma with ownership or access to the world's
 broadest patent portfolio in the field of dendrimers, and establishes the
 companies as leading providers of market-validated nanotechnology with
 near-term, tangible commercial applications.
     Under terms of the deal, Dow will assign its entire intellectual property
 portfolio and associated royalties in the field of dendrimers (196 patents
 comprising 41 patent families) to DNT in exchange for a significant equity
 stake in DNT. Starpharma, which already held a 42% interest in DNT, will make
 an additional cash equity investment in DNT in exchange for exclusive rights
 to DNT and former Dow intellectual property for polyvalent, dendrimer-based
 pharmaceutical applications.
     "As part of this agreement, Dow has assigned all of our extensive
 intellectual property in this field to DNT," explained Mike Pirc, manager of
 intellectual property, The Dow Chemical Company. "This move consolidates a
 great amount of the important intellectual property in the dendrimer field
 into one company. It will be very positive for developing the applications and
 further demonstrating the value of this technology."
     "Having an investment by Dow not only highlights DNT's position as a
 global leader in nanotechnology and advanced dendritic polymers, but also
 means opportunities for the pharmaceutical and biotechnology markets," said
 Robert Berry, chief executive officer, Dendritic NanoTechnologies. "The fact
 that Dow is transferring their intellectual property portfolio in dendrimers
 to DNT reinforces that DNT, and our strategic partner Starpharma, are
 well-positioned to develop, market and successfully commercialize these
     Dendrimers are a new class of nanostructures with physical properties that
 make them ideal vehicles for targeting diseases and delivering drugs to fight
 them. Dendrimer technology was first developed at Dow when DNT founder Donald
 Tomalia was a Dow employee. Today, DNT has more than 30 patents in dendrimer
 science, and sells and licenses more than 200 variations of dendrimers to
 pharmaceutical, biotechnology, and diagnostics companies.
     DNT's current product development areas include protein, antibody, and
 anti-inflammatory drug delivery technologies for the pharmaceutical industry;
 small-interfering RNA (si-RNA) drug targeting and delivery solutions for the
 biotech industry; and new diagnostic solutions for enhancing the findings of
 MRIs. With the assignment of the Dow patent portfolio, DNT will now own the
 world's broadest intellectual property position in dendrimer science.
     In January 2004, Starpharma became the first company in the world to
 initiate human clinical testing of a dendrimer-based pharmaceutical
 (VivaGel(TM) for prevention of HIV) under a U.S. Food and Drug Administration
 Investigational New Drug application. VivaGel was recognized as one of the top
 five nanotech breakthroughs of 2004 by the Forbes/Wolfe Nanotech Report.
     The deal also positions DNT and Starpharma as the leading sources of
 license rights for dendrimers and as developers of the technology in their own
     "Starpharma is very pleased to complete this major deal with Dow and DNT.
 In doing so, we are helping to establish our strategic partner DNT as the
 premier out-licensing source for one of the most important fields in
 nanotechnology," commented John Raff, chief executive officer of Starpharma.
 "The agreement also significantly strengthens our own intellectual property
 position in the area of polyvalent, dendrimer-based pharmaceuticals."
     "Big pharma has been in big trouble," said Josh Wolfe, managing partner,
 Lux Capital. "They've spent investor money developing drugs with increasingly
 little returns and imprecise delivery vehicles. One clear way to deliver
 better performance is better delivery of drugs. DNT's dendrimers fuse biology
 and chemistry -- marrying a drug with a 'container' to deliver it precisely to
 patients. The Dow patents and expertise will push this technology closer to
     About The Dow Chemical Company
     Dow is a leader in science and technology, providing innovative chemical,
 plastic and agricultural products and services to many essential consumer
 markets. With annual sales of $33 billion, Dow serves customers in more than
 180 countries and a wide range of markets that are vital to human progress,
 including food, transportation, health and medicine, personal and home care,
 and building and construction, among others. Committed to the principles of
 sustainable development, Dow and its approximately 46,000 employees seek to
 balance economic, environmental and social responsibilities. References to
 "Dow" or the "Company" mean The Dow Chemical Company and its consolidated
 subsidiaries unless otherwise expressly noted. For further information, visit
     About Starpharma Holdings Ltd.
     Starpharma is focused on the development and application of dendrimer
 nanotechnologies as drugs against major diseases. Starpharma's lead dendrimer
 product, VivaGel(TM) has received clearance from the U.S. FDA for human
 clinical trials. VivaGel is a topical microbicide gel product that has been
 developed for women as a preventative against the sexual transmission of HIV.
 It is also active in animal studies for the prevention of other sexually
 transmitted diseases including genital herpes and chlamydia. SPL also has an
 equity interest in a U.S.-based company-Dendritic Nanotechnologies Inc.
 (DNT)-established with the U.S. pioneer of dendrimer nanotechnology Dr. Donald
     About DNT
     Dendritic NanoTechnologies Inc. (DNT) is the world's leading developer and
 provider of advanced dendritic polymers. DNT has breakthrough technology that
 provides the vehicle -- the targeting and delivery mechanisms -- for a vast
 array of diagnostic and therapeutics currently in development in the
 biotechnology and pharmaceutical industries. DNT was founded in 2003 on a
 technology platform discovered in 1979 when Donald Tomalia, PhD, then a senior
 research scientist with The Dow Chemical Company, discovered "dendrimers," or
 dendritic polymers. This new type of nanostructure (particles so small they
 allow us to build materials literally atom-by-atom) hold great promise for
 real-world applications such as biotechnology and pharmaceuticals. Based on Dr.
 Tomalia's work, Dow was awarded the world's first dendrimer patents.

SOURCE Dendritic NanoTechnologies Inc.