SpectRx, Inc. Announces Abbott Laboratories Funding Responsibility for Continuous Glucose Monitoring Product

Apr 11, 2001, 01:00 ET from SpectRx, Inc.

    NORCROSS, Ga., April 11 /PRNewswire/ -- SpectRx, Inc. (NASDAQ:   SPRX) today
 announced that, as planned, its partner Abbott Laboratories has assumed
 financial responsibility for its continuous glucose monitoring program, as of
 April 1, 2001.  Previously, SpectRx had been funding part of the research and
 development program.  The primary activities being conducted at SpectRx
 include continued research, clinical testing and engineering activities.
 SpectRx previously announced that it expected to receive a $2 million
 development milestone payment related to this program in March 2001.  SpectRx
 now expects to receive this milestone payment before August 31, 2001, in the
 form of an equity investment in SpectRx common stock.  Abbott currently owns
 5.9% of SpectRx's common stock.
     Under a 1999 agreement, Abbott has exclusive worldwide marketing rights to
 SpectRx's interstitial fluid glucose monitoring technology.  The agreement
 includes financing, development milestone payments, and cooperative research
 and development focused initially on continuous glucose monitoring.  Under the
 agreement, SpectRx will receive a royalty on sales of disposables and has the
 option to manufacture continuous monitoring devices for Abbott.  The
 technology is being developed with Abbott Laboratories.
     "We are extremely pleased that we are continuing to move forward with the
 development of the continuous glucose monitoring product," said Mark A.
 Samuels, SpectRx Chairman and CEO.  "We believe that our partnership with
 Abbott will expedite development of a valuable new tool to help people with
 diabetes around the world manage their glucose levels, and as a result, have a
 better quality of life."
     The continuous glucose monitoring sensor, worn on top of the skin, offers
 the promise of allowing people with diabetes to continuously monitor their
 glucose levels without the pain and inconvenience of fingerstick blood tests
 or implanting a sensor.   Prototypes of the device have shown the capability
 of providing readings once a minute.  The technology measures glucose levels
 in interstitial fluid (ISF) rather than blood.  A stream of ISF is collected
 through an array of microscopic holes or micropores created with a laser in
 the outer layer of skin, and measured in a patch containing a glucose sensor.
 It is envisioned that the final design sensor patch would be used for up to
 three days.
     Blood glucose levels are a measure of an individual's health status.
 Because people with diabetes cannot properly metabolize glucose, today they
 typically monitor their glucose levels by frequently pricking their fingertips
 to draw the drop of blood necessary for conventional glucose monitoring.  The
 yearly worldwide market for glucose testing is estimated at $3.7 billion and
 is growing at an annual rate of 12 to 18 percent.
 
     SpectRx, Inc. is a leading biophotonics company that develops and
 manufactures painless and bloodless alternatives to medical diagnostic and
 monitoring procedures.  For more information, visit the SpectRx web site at
 www.spectrx.com or use Internet Keyword spectrx.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995.  A number of the matters and subject areas discussed in this press
 release that are not historical or current facts deal with potential future
 circumstances and developments.  The discussion of such matters and subject
 areas is qualified by the inherent risks and uncertainties surrounding future
 expectations generally and also may materially differ from SpectRx's actual
 future experience involving any of or more of such matters and subject areas.
 SpectRx has attempted to identify, in context, certain of the factors that
 they currently believe may cause actual future experience and results to
 differ from SpectRx's current expectations regarding the relevant matter or
 subject area.  Such risks and uncertainties include:  the early stage of its
 products in development, its dependence on collaborative arrangements, its
 dependence on licensed intellectual property, the uncertainty of market
 acceptance of its products, the intense competition in the medical device
 industry, the uncertainty of regulatory approval of its products, the
 uncertainty of additional capital to develop products, as well as those that
 are more fully described from time to time in SpectRx's reports under the
 heading "Risk Factors" filed with the SEC, including SpectRx's Annual Report
 on Form 10-K for the fiscal year ended December 31, 2000 and in the Forms 10-Q
 for the first, second and third quarters of 2000 filed by SpectRx.
 
 

SOURCE SpectRx, Inc.
    NORCROSS, Ga., April 11 /PRNewswire/ -- SpectRx, Inc. (NASDAQ:   SPRX) today
 announced that, as planned, its partner Abbott Laboratories has assumed
 financial responsibility for its continuous glucose monitoring program, as of
 April 1, 2001.  Previously, SpectRx had been funding part of the research and
 development program.  The primary activities being conducted at SpectRx
 include continued research, clinical testing and engineering activities.
 SpectRx previously announced that it expected to receive a $2 million
 development milestone payment related to this program in March 2001.  SpectRx
 now expects to receive this milestone payment before August 31, 2001, in the
 form of an equity investment in SpectRx common stock.  Abbott currently owns
 5.9% of SpectRx's common stock.
     Under a 1999 agreement, Abbott has exclusive worldwide marketing rights to
 SpectRx's interstitial fluid glucose monitoring technology.  The agreement
 includes financing, development milestone payments, and cooperative research
 and development focused initially on continuous glucose monitoring.  Under the
 agreement, SpectRx will receive a royalty on sales of disposables and has the
 option to manufacture continuous monitoring devices for Abbott.  The
 technology is being developed with Abbott Laboratories.
     "We are extremely pleased that we are continuing to move forward with the
 development of the continuous glucose monitoring product," said Mark A.
 Samuels, SpectRx Chairman and CEO.  "We believe that our partnership with
 Abbott will expedite development of a valuable new tool to help people with
 diabetes around the world manage their glucose levels, and as a result, have a
 better quality of life."
     The continuous glucose monitoring sensor, worn on top of the skin, offers
 the promise of allowing people with diabetes to continuously monitor their
 glucose levels without the pain and inconvenience of fingerstick blood tests
 or implanting a sensor.   Prototypes of the device have shown the capability
 of providing readings once a minute.  The technology measures glucose levels
 in interstitial fluid (ISF) rather than blood.  A stream of ISF is collected
 through an array of microscopic holes or micropores created with a laser in
 the outer layer of skin, and measured in a patch containing a glucose sensor.
 It is envisioned that the final design sensor patch would be used for up to
 three days.
     Blood glucose levels are a measure of an individual's health status.
 Because people with diabetes cannot properly metabolize glucose, today they
 typically monitor their glucose levels by frequently pricking their fingertips
 to draw the drop of blood necessary for conventional glucose monitoring.  The
 yearly worldwide market for glucose testing is estimated at $3.7 billion and
 is growing at an annual rate of 12 to 18 percent.
 
     SpectRx, Inc. is a leading biophotonics company that develops and
 manufactures painless and bloodless alternatives to medical diagnostic and
 monitoring procedures.  For more information, visit the SpectRx web site at
 www.spectrx.com or use Internet Keyword spectrx.
 
     "Safe Harbor" Statement under the Private Securities Litigation Reform Act
 of 1995.  A number of the matters and subject areas discussed in this press
 release that are not historical or current facts deal with potential future
 circumstances and developments.  The discussion of such matters and subject
 areas is qualified by the inherent risks and uncertainties surrounding future
 expectations generally and also may materially differ from SpectRx's actual
 future experience involving any of or more of such matters and subject areas.
 SpectRx has attempted to identify, in context, certain of the factors that
 they currently believe may cause actual future experience and results to
 differ from SpectRx's current expectations regarding the relevant matter or
 subject area.  Such risks and uncertainties include:  the early stage of its
 products in development, its dependence on collaborative arrangements, its
 dependence on licensed intellectual property, the uncertainty of market
 acceptance of its products, the intense competition in the medical device
 industry, the uncertainty of regulatory approval of its products, the
 uncertainty of additional capital to develop products, as well as those that
 are more fully described from time to time in SpectRx's reports under the
 heading "Risk Factors" filed with the SEC, including SpectRx's Annual Report
 on Form 10-K for the fiscal year ended December 31, 2000 and in the Forms 10-Q
 for the first, second and third quarters of 2000 filed by SpectRx.
 
 SOURCE  SpectRx, Inc.