Gambro to distribute BioTransplant's Eligix products for cancer treatment

Gambro and BioTransplant sign exclusive distribution agreement for the Eligix product line for the treatment of cancer Stockholm, Sweden, August 14, 2001 Gambro AB (Stockholmsbörsen: GAMBaST, GAMBbST), a leading international medical technology and healthcare company, today announced that its wholly owned subsidiary, Gambro BCT, has signed an exclusive distribution agreement with BioTransplant Incorporated (Nasdaq: BTRN) for the distribution of the Eligix product line and with options on future products as stand-alone medical devices. The territory will be worldwide, exclusive of the US, Canada and Japan. These additional markets will be considered for inclusion based upon potential future agreements. BioTransplant will receive an upfront licensing fee of USD 4 M plus a milestone for CE marking and future milestones for other new products receiving CE marking. The two companies will also share revenues, based upon a specific formula. The Eligix products are designed to remove unwanted cells in cancer therapies thereby improving clinical outcomes for patients. Under the terms of the agreement BioTransplant will develop, manufacture and obtain CE marking for its Eligix HDM (High Density Microparticles) Cell Separation System. The first of these products, BCell-HDM, has received the CE mark permitting its sale in the European Union. Gambro BCT will be responsible for continued clinical market development and all other aspects of marketing, sales and distribution. The initial applications are to remove tumor and immunoreactive cells for bone marrow and stem cell transplantations. "We are excited to be partnering with a global leader like Gambro BCT, to extend our marketing reach for our Eligix cell separation devices," says Elliot Lebowitz, BioTransplant's Chairman and CEO. "This is an elegant, yet simple to use medical device that we expect will bring tremendous benefit to a significant cancer patient population. The Eligix devices in BioTransplant's AlloMuneTM System are part of a comprehensive approach to treating cancer and other life-threatening diseases. As a company with commercial products, we will continue to develop our Eligix line of products as well as make further advances with our other product candidates in various clinical and pre-clinical stages." "The agreement supports Gambro BCT's strategy to broaden its offering to clinicians," says David Perez, President of Gambro BCT. "Earlier this year Gambro BCT established a new business unit to specifically focus on new areas of cell based immunotherapies. Its mission is to deliver a broad range of cellular and plasma therapies and support for the treatment of cancer, congenital and immune disorders, through innovation in cell collections, ex vivo cell manipulation and graft engineering. The Eligix products will augment our current business, as stem cells and immune facilitator cells collected on Gambro BCT Apheresis systems, can now be further purified to improve patient outcomes." As opposed to conventional systems which use positive selection of stem and progenitor cells, the HDM technology depletes the unwanted cells, through use of specific antibodies targeted against the undesirable cells, thus preserving the spectrum of cells required for facilitating blood and immune system reconstitution. Enhanced recovery of desired cells plus ease of use factors make this system more suitable in today's stem cell transplantation and cell based immunotherapy marketplaces. This technology was originally developed at the Coulter Corporation, from which US Patent #5576185, issued on November 19, 1996 was licensed. BioTransplant utilizes its proprietary technologies under development to re-educate the body's immune responses to allow tolerance of foreign cells, tissues and organs. Based on this technology, the Company is developing a portfolio of products for application in a range of medical conditions, including organ and tissue transplantation, and treatment of cancer and autoimmune diseases, for which current therapies are inadequate. BioTransplant's products under development are intended to induce long-term functional transplantation tolerance in humans, increase the therapeutic benefit of bone marrow transplants, and reduce or eliminate the need for lifelong immunosuppressive therapy. For further information please contact: Gambro Bill Mercer, Gambro BCT, tel +1 303 231 4601 www.gambrobct.com Bengt Modéer, Investor Relations, tel. +46-8-613 65 00, +46-70-513 65 33 Karin Avasalu, Corporate Communications, tel. +46-8-613 65 00, +46-70- 513 65 99 Kevin Smith, President Gambro Inc., Investor Relations US, tel. +1-303 231 4750 BioTransplant Incorporated Elliot Lebowitz, PhD., President and CEO, tel. +1-617 241 5200 www.BioTransplant.com ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2001/08/14/20010814BIT00430/bit0002.doc http://www.waymaker.net/bitonline/2001/08/14/20010814BIT00430/bit0002.pdf