Activaero Signs Collaboration with Forest Healthcare B.V. for Cystic Fibrosis

Gemuenden (Wohra), Germany - 26 January 2011 - Activaero GmbH, the leading company in the field of controlled breathing technologies for inhaled therapeutic agents, today announced that it has signed a collaboration agreement with Forest Healthcare under which they will market Activaero’s AKITA JET inhalation system in Germany for use in cystic fibrosis. Forest, a wholly owned subsidiary of the US pharmaceutical manufacturer Forest Laboratories, Inc., plans to use AKITA’s highly efficient technology for the treatment of cystic fibrosis (CF) in order to optimize treatment with the antibiotic Colistin CF and reduce drug consumption. In January 2011, Forest acquired the rights to Colistin CF from the company Gruenenthal with the intent to further expand its European operations in cystic fibrosis.

Chronic bacterial lung infections in patients with cystic fibrosis require continuous antibiotic inhalation therapy. With the AKITA JET inhalation system, Colistin CF can now be efficiently introduced into the lungs, so that high-dose therapy uses only 2 x 1 million IU Colistin per day. Drug consumption is effectively cut in half, meaning that patients will be able to save several thousand Euros in treatment costs.

Forest will immediately begin to introduce the AKITA JET inhalation system for use in high-dose therapy using Colistin CF in all German CF centers. Both partners in the collaboration have already presented data from various studies, in order to demonstrate the benefits of AKITA JET/ Colistin CF compared to colistin inhalation using other nebulizers.

Dr. Gerhard Scheuch, founder and CEO of Activaero, commented: "We are delighted to be announcing this collaboration. It shows that well-known pharmaceutical companies appreciate the value of our inhalation technology and use it not only to optimize the delivery of their active ingredients, but also to gain a competitive advantage. With regard to Colistin CF, we are certain that the AKITA JET inhalation system will improve the quality and cost of antibiotic treatment for CF patients in the long term."

About Activaero:

Activaero is the world leader in the design of controlled breathing drug delivery technologies that maximize the efficiency and precision of inhaled drugs. These innovative technologies enable safer, more cost-efficient, and effective options for inhaled treatments of respiratory diseases and are available for clinical trials and pharma partnerships. Under the trade mark of AKITA® Activaero is developing and producing inhalation systems which enable the use of FAVORITE in the therapy of pulmonary diseases and the development of new inhalant drugs. Beyond that, Activaero is a center of excellence in aerosol medicine and supports pharma and biotech companies with its technology and services. Activaero GmbH is located in Gemuenden/Wohra and Munich (Germany) and Dublin, Ohio (USA).

For more information, please visit the new website: www.activaero.com

About Gruenenthal/Forest Healthcare B.V.:

In Germany, the company Gruenenthal is a market leader in inhaled antibiotics with the drug Colistin CF. Colistin CF is used to treat lung inflammation caused by Pseudomonas aeruginosa, a bacterial pathogen primarily associated with the genetic disease cystic fibrosis. In December 2010, Gruenenthal sold its Colistin CF business as part of a strategy to focus on its core business in pain treatment.

Forest Healthcare B.V. is a subsidiary of the US pharmaceutical company Forest Laboratories Inc., which acquired the full rights for Colistin CF from Gruenenthal. Forest already owns the distribution rights for Colistin in Great Britain and Ireland, and has now purchased the rights for Germany, Switzerland, Austria and the Netherlands from Gruenenthal. With this acquisition, Forest plans to expand its European cystic fibrosis business and become the main distributor of Colistin in Europe.

For more information, please visit: www.frx.com

Contact:

Dr. Jens Stegemann Manager Business Development & Medical Marketing Activaero GmbH t: +49 (0)160 - 972 73 537 e: jens.stegemann@activaero.de

Dr. Robert Mayer Senior Account Manager College Hill Life Sciences t: +49 (0)89 52 38 80 30 e: robert.mayer@collegehill.com

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