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BioStratum Raises $6 Million From Scandinavian Venture Firms
- - Expands Sweden Subsidiary Operations - -

Research Triangle Park, N.C., April 1, 1999 -- BioStratum recently completed a $6.0 million equity financing with
two leading Scandinavian venture firms, HealthCap managed by Odlander and Fredrikson & Co, AB in Stockholm, Sweden, and BankInvest in Copenhagen, Denmark. The funding will be used to initiate human
clinical trials for BioStratum's lead drug candidates
and to expand operations of BioStratum AB, a
fully-owned subsidiary in Stockholm, Sweden.

BioStratum's lead drug candidate, Pyridorin is directed against diabetes related complications. The Company's second drug candidate, Angiocol, is a type IV collagen derived anti-angiogenesis/anti-tumor agent. BioStratum
is also commercializing a proprietary glomerular gene transfer technology for treating kidney diseases.

“The numerous potential disease targets for both
Pyridorin and Angiocol has led BioStratum to initiate
the establishment of corporate alliances to assist in
testing and commercializing the full potential of these
drug candidates,” said Dr. Prestayko, the company's president and CEO. “We are actively contacting and discussing such alliances with potential corporate partners.”

BioStratum's lead product, Pyridorin, is slated to begin human testing this summer. Pyridorin inhibits the
formation of molecules referred to as advanced glycation end products (AGEs), that are one of the causes of diabetes complications such as kidney deterioration. Pyridorin has successfully prevented the development
of kidney disease in several animal models of diabetic nephropathy and is currently being tested in preclinical models of uremia and end-stage kidney disease.

BioStratum's other therapeutic lead, Angiocol, has
anti-cancer activity that derives from its ability to starve tumors by restricting their blood supply. It disrupts interactions between basal lamina components and
specific cell integrin receptors that are required to
support new blood vessel growth. Angiocol is a human recombinant protein derived from the non-collagenous domain of type IV collagen. It has been successfully
tested in several animal models of angiogenesis and against three different tumor types. Angiocol is planned
for human clinical trials next year.

BioStratum's subsidiary in Sweden is focusing on the commercialization of scientific advances that have
emerged from the Karolinska Institute laboratory of
Dr. Karl Tryggvason, a cofounder of BioStratum. These advances include: (1) new therapeutic approaches for kidney disease based on effective transfer of genes to
the glomerulus; (2) the discovery of nephrin, a key protein of the glomerular ultrafiltration barrier and a candidate for glomerular gene transfer therapy for proteinuria associated with most kidney diseases; (3) the identification of 2nd generation small molecule inhibitors of MMP-2 via rational drug design using the structures of TIMP-2 and MMP-2; and (4) the use of anti-laminin technology to detect and image metastatic tumors.

BioStratum is a privately held company developing proprietary therapeutics based on recent scientific advances in basal lamina and related technologies.
The company's drug candidates are directed against
novel basal lamina extracellular targets involved in degenerative and invasive disease processes fundamental to kidney disease, diabetes and cancer. The company
has also developed methods for the production of recombinant basal lamina proteins for use in wound
repair and advanced tissue regeneration protocols.