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Nestlé Nutrition and Medical Instill Technologies, Inc. Announce Exclusive Partnership Agreement to Manufacture Sterile Liquid Nutrition Products

-- Utilization of MedInstill’s Pioneering Innovation Signals Breakthrough in Pharmaceutical, Food and Cosmetic Safety --
-- Nestlé deal follows MedInstill’s transaction with GlaxoSmithKline for vaccines and injectable pharmaceuticals --

New Milford, Connecticut, May 16, 2005 – Nestlé Nutrition, a unit of Nestlé S.A. the world’s biggest food and beverage company, and Medical Instill Technologies, Inc. (MedInstill), a U.S.-based technology company, today announced a major partnership agreement to use MedInstill’s “INTACT”™ technology to develop and manufacture sterile liquid nutrition products.

Under the agreement and in exchange for certain payments and royalties, MedInstill grants an exclusive license to Nestlé to use MedInstill’s:

• Ground breaking, patented “INTACT”™ products for the sterile filling of liquid nutrition products
• One-way barrier "Puredose"™ valve technology that allows multiple dose preservative-free delivery of liquid nutrition products without risk of contamination.

As part of the agreement, MedInstill, which is currently located in Stamford, will relocate to a facility owned by Nestlé in New Milford, Connecticut where it will develop pilot production capabilities for its nutrition, pharmaceutical and cosmetic applications.

Dr. Daniel Py, Chairman of MedInstill, said, “We are excited to be forging this important partnership with Nestlé, which will bring MedInstill into the nutrition market and provide us important resources that will enable us to accelerate and expand our development."

“The primary objective of MedInstill is to pioneer breakthrough technologies that have the potential to change how medicines, food and topical products are manufactured and delivered, improving their safety profile. Vaccines and liquid nutrients are used widely in children and the opportunity to modestly contribute to improving children’s health has been a motivating and rewarding goal of the company.”

Using MedInstill’s patented “INTACT”™ processes, closed containers are filled through a stopper with a needle and re-sealed with a laser. This new and innovative filling method ensures the sterility of liquid and semi-solid products. By dramatically simplifying the sterile filling process, this new approach provides a high safety level at lower capital and operating costs.

The “Puredose”™ valve has been proven to allow the delivery of liquids, creams and gels without contamination of the package throughout the life of the product, resulting in the elimination of preservatives. Preservatives are known to cause adverse reactions to some people.

In October 2004, MedInstill entered into a similar license agreement with GlaxoSmithKline for vaccines and other injectable pharmaceuticals, which may have important long-term benefits for safety, availability and cost in vaccine production.

MedInstill is currently pursuing similar partnerships in the ophthalmology, dermatology and cosmetic fields.

MedInstill, advised by the New York office of Rothschild, and legal counsel McCarter & English LLP, is actively involved in the development, production and commercialization of other delivery devices.

About Med-Instill

Medical Instill Technologies (http://www.medinstill.com) is a company dedicated to the invention, development and commercialization of technologies for the aseptic manufacturing and delivery of pharmaceutical, cosmetic and nutrition products. MedInstill has filed over 200 patents for the aseptic filling and multiple dose delivery of preservative-free products. In addition, MedInstill's devices are conceived for enhancing drug efficacy and reducing side effects through accurate, consumer friendly, metered dose delivery systems for topical applications on skin and mucous membranes.

About Nestlé Nutrition

Nestlé Nutrition is an autonomous business operation within the Nestlé group that will manage and develop, as of 1 January 2006, the group's core nutrition business. Through science-based nutrition products and services, Nestlé Nutrition will help enhance the quality of people’s lives by supporting health and providing care for specific consumer groups with special nutrition needs at every stage of life. Its product portfolio – covering infant nutrition, healthcare nutrition and performance nutrition – includes such trusted and well-recognised brands as: NAN, LACTOGEN, NESLAC, NUTREN, PEPTAMEN and POWERBAR.