Micralyne and MicroCHIPS Expand Strategic Research & Development Partnership

October 08, 2003

Edmonton, Alberta and Bedford, Massachusetts, October 8, 2003 – Micralyne Inc. and MicroCHIPS, Inc. today announced that they have expanded the scope of their work together for the development of MicroCHIPS’ innovative drug delivery and biosensing devices.

Micralyne, a developer and OEM manufacturer of BioMEMS and other MEMS components, will increase its work with MicroCHIPS as the company’s drug delivery product development activities continue to advance.

“We are very pleased with our collaboration with Micralyne,” stated John Santini, President and Chief Scientific Officer of MicroCHIPS, Inc. “We have met the milestones for the first phase of this project and are now accelerating the pace of our pre-clinical development work.”

MicroCHIPS’ patented technology is based on microfabricated devices containing hundreds of micro-reservoirs, each of which can be filled with any combination of drugs, reagents, or other chemicals. Alternatively, the reservoirs can serve as tiny protective chambers for microfabricated biosensors.

“Since signing our first agreement with MicroCHIPS in September, 2002, we have been able to deliver on the first stages of their development program on time and on budget”, added Chris Lumb, President and CEO of Micralyne. “We are enthused to have such a strong relationship with MicroCHIPS and to be expanding our work with them. It is exciting to consider the tremendous potential in this relatively new area of BioMEMS applications and we look forward to continuing to meet their manufacturing requirements.”

About MicroCHIPS
MicroCHIPS, Inc. is a pioneer in the development of advanced drug delivery and biosensing systems. The company’s patented technology is designed for the controlled administration of both protein and small molecule drugs for use in a number of areas including ophthalmology, osteoporosis, and congestive heart failure. MicroCHIPS was founded in 1999 by John Santini, Terry McGuire, and MIT Professors Robert Langer and Michael Cima.

About Micralyne
Micralyne develops and manufactures microfabricated and MEMS (Micro-Electro-Mechanical-Systems)-based products. Micralyne is one of the largest independent companies in the world that manufactures MEMS in high volumes. MEMS technology is built on the premise of making industrial components smaller, faster and less expensive and facilitates radical improvements in the miniaturization of electronic and mechanical devices. These types of devices are used in many industries including communications, automotive, aerospace, and life sciences. More specifically, Micralyne’s micron-scale solutions (i.e. 1000 microns = 1 millimetre) are found in automotive emission sensors, optical switching technology in telecommunication networks, lab-on-a-chip devices for drug discovery, and commercial press equipment for printing today’s most popular magazines. Micralyne is a profitable and growing company headquartered in Edmonton, Alberta, Canada.

For further information contact:

Mr. Chris Lumb
President & CEO
Micralyne Inc.
1911 – 94 Street
Edmonton, Alberta
Canada T6N 1E6
Phone: 780-431-4400
clumb@micralyne.com

or

Dr. John Santini
President & CSO
MicroCHIPS, Inc.
6-B Preston Court
Bedford, MA 01730
(781) 275-1445
www.mchips.com