Subject: Lilly Press Release
From: [email-masked]
To: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Cc: [email-masked]
Date: Wed, 6 Sep 2000 03:08:00 -0700 (PDT)

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                Lilly and Generex Sign Agreement To Develop

                          Buccal Form of Insulin

Eli Lilly and Company (NYSE: LLY) and Generex Biotechnology Corporation

(NASDAQ: GNBT) today announced that they have signed an agreement to

develop a buccal formulation of insulin that is administered as a fine

spray into the oral cavity using Generex proprietary technology.

Under the terms of the agreement, Generex will receive certain initial fees

and milestone payments.  Generex will also receive royalty payments based

on product sales.  In exchange, Lilly will receive exclusive worldwide

rights to products resulting from the collaboration.  Lilly will be

responsible for conducting clinical trials, securing regulatory approvals

and marketing on a worldwide basis.  Clinical trials of the first product

candidate are under way in North America and Europe.  Lilly will also have

the option to develop a number of additional products depending on the

success of the initial product.

"We look forward to working with Generex, whose buccal spray delivery

technology potentially represents a novel approach to drug delivery," said

James A. Harper, president, diabetes and growth disorders products for

Lilly. "A buccal spray formulation of insulin could provide an attractive

alternative for people with diabetes."

"The opportunity to partner with Lilly, the global leader in insulins, to

develop the world's first marketed buccal insulin spray represents very

good news for millions of patients with diabetes throughout the world,"

said Anna Gluskin, chief executive officer of Generex. "We are pleased that

Lilly has recognized the potential of buccal delivery of insulin and

Generex's RapidMist? technology for systemic delivery of proteins, peptides

and other large molecule drugs."

Today, worldwide costs for treating diabetes and its complications are

estimated to exceed $200 billion annually.  It is also estimated that, over

the next decade, the number of people with this disease will more than

double.  Lilly has been a leader in diabetes care for more than 75 years.

The company continues to aggressively pursue the goal of being a complete

diabetes care company and intends to provide innovative products to treat

all types and stages of diabetes.

Generex is engaged in the research and development of drug delivery systems

and technologies. To date, it has focused on developing a platform

technology for the buccal delivery (absorption through the inner cheek

walls) of large molecule drugs which, historically, have been administered

only by injection. Additional information about Generex can be found at

www.generex.com.

Lilly, a leading innovation-driven corporation, is developing a growing

portfolio of best-in-class pharmaceutical products by applying the latest

research from its own worldwide laboratories and from collaborations with

eminent scientific organizations. Headquartered in Indianapolis, Ind.,

Lilly provides answers ? through medicines and information ? for some of

the world's most urgent medical needs.

Certain statements set forth above may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995. Although Generex and Lilly believe that such statements are
based on reasonable assumptions within the bounds of their knowledge of
their business and operations, there can be no assurance that: (i) Lilly or
Generex will not terminate the collaboration, (ii) that any products will
be developed, manufactured or commercialized successfully, or (iii) that
significant funding will be received by Generex as a result of this
collaboration.

Each company's business is subject to significant risks and there can be no
assurance that actual results of the companies' development activities and
results of their operations will not differ materially from expectations.
For information with respect to other factors, which could cause actual
results to differ from expectations, reference is made to the 10-K and 10-Q
reports filed by Generex and Lilly, respectively, with the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended.

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