Flamel Technologies Announces Payment from Bristol-Myers Squibb to Fla

    Pharmaceutical Writers/Business Editors

    LYON, France--(BUSINESS WIRE)--Jan. 31, 2005--Flamel Technologies (NASDAQ: FLML) today announced that it has entered into an agreement with Bristol-Myers Squibb Company (NYSE: BMY), which resolves all outstanding matters with respect to the former licensing agreement dated August 26, 2003 between the companies for Flamel's formulation of long-acting human insulin, Basulin(R) (the "Agreement").
    Under the terms of the Agreement, Flamel will receive a cash payment, as well as clear title to certain data produced in connection with the relationship between the parties, including the results of a Phase IIa study of Basulin. Flamel intends to make a summary of such data publicly available on its website.
    Dr. Gerard Soula, Founder, President and Chief Executive Officer of Flamel Technologies, said: "While we regret that we will not be moving forward anymore with Bristol-Myers Squibb on this important project, we are pleased to have concluded the agreement with certain payments to us and the recovery of this important clinical data on Basulin(R). We are actively continuing our work with Basulin with the intention of licensing it appropriately."

    Flamel Technologies, S.A. is a biopharmaceutical company principally engaged in the development of two unique polymer-based delivery technologies for medical applications. Flamel's Medusa(R) technology is designed to deliver therapeutic proteins. Micropump(R) is a controlled release and taste-masking technology for the oral administration of small molecule drugs.

    This document contains a number of matters, particularly as related to the status of various research projects and technology platforms, that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
    The presentation reflects the current view of management with respect to future events and is subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements.
    These risks include risks that products in the development stage may not achieve scientific objectives or milestones or meet stringent regulatory requirements, uncertainties regarding market acceptance of products in development, the impact of competitive products and pricing, and the risks associated with Flamel's reliance on outside parties and key strategic alliances.
    These and other risks are described more fully in Flamel's Annual Report on the Securities and Exchange Commission Form 20-F for the year ended December 31, 2003.

--30--ML/ny*

CONTACT: Flamel Technologies S.A. Gerard Soula, (33) 4-72-78-34-34 Fax: (33) 4-72-78-34-35 soula@flamel.com or Stephen H. Willard, 202-862-3993 Fax: 202-862-3933 willard@flamel.com or Charles Marlio, 202-862-8535 marlio@flamel.com

KEYWORD: FRANCE INTERNATIONAL EUROPE INDUSTRY KEYWORD: MEDICAL PHARMACEUTICAL BIOTECHNOLOGY MARKETING AGREEMENTS SOURCE: Flamel Technologies S.A.

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