WEST CHESTER, Pa., Dec 16, 2004 (BUSINESS WIRE) -- Animas Corporation (NASDAQ NM:PUMP) today announced that it has entered into a definitive agreement with Cygnus, Inc. (OTC BB:CYGN) pursuant to which Animas will acquire substantially all of Cygnus' intellectual property rights, fixed assets, supplier, manufacturing and license agreements, inventory and tangible personal property, for $10 million in cash. Under the terms of the agreement, Animas will take ownership of over 237 U.S. and foreign patents in the fields of continuous glucose sensing, extraction of interstitial fluid by reverse electro-iontophoresis and electrochemical sensors. Animas will not assume any of Cygnus's liabilities in this transaction other than customary obligations under assumed contracts.

"Cygnus has a uniquely strong patent portfolio in the field of glucose sensing," says Dr. Kathy Crothall, President and CEO of Animas. "Cygnus electrochemical sensor technology is quite mature, with Cygnus having produced over ten million electrochemical sensors. The marriage of the micro-needle technology recently licensed from Debiotech to the Cygnus electrochemical sensor technology offers the possibility of a future generation sensor with improved accuracy and less skin irritation than Cygnus' present technology. With this transaction, Animas will add a compelling, minimally-invasive technology to its continuous glucose sensing portfolio. These new technologies nicely complement Animas' long-term implantable sensor development, and when coupled with our superior insulin pump technology, substantially strengthen Animas' position in this important area."

The consummation of the transaction is subject to the approval of Cygnus's stockholders and other customary conditions. Upon consummation of the transaction, Cygnus will cease operations and, at a time to be determined in the future, dissolve under applicable law.

About Animas

Animas, a leading maker of insulin infusion pumps and related products, is dedicated to improving diabetes management and making insulin pump therapy easier for patients with insulin requiring diabetes and healthcare professionals through product innovation, exemplary customer support and superior customer education. For more information on Animas, visit http://www.animascorp.com or call Animas Corporation at 877-937-7867.

Statements in this press release or made by management from time to time regarding Animas Corporation, or the transaction with Cygnus and its anticipated benefits, that are not historical facts are forward-looking statements and are subject to risks, assumptions and uncertainties that could cause actual future events or results to differ materially from such statements. Any such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The following factors, among others, could cause Animas' actual results to differ materially from those described in a forward-looking statement: the technical issues or the failure of the IR1200 to gain significant market acceptance; failure to capture recurring purchases of ancillary supplies by patients using Animas' pumps; any significant disruption with vendors; any failure to achieve and then maintain profitability; failure to commercialize the Debiotech technology and realize its anticipated benefits; the failure of Animas' ezSet Infusion Set to be fully-developed or commercially accepted; technological breakthroughs in diabetes monitoring, treatment, or prevention that could render Animas' products obsolete; failure to comply with any FDA or foreign regulations; an inability to attract and retain personnel; competition; an inability to adequately protect Animas' intellectual property; product liability lawsuits; failure to secure or retain third party insurance coverage or reduced reimbursement for Animas' products by third party payors; and our ability to complete the transaction with Cygnus and realize its anticipated benefits. This list is intended to identify only certain of the principal factors that could cause actual results to differ. Readers are referred to the reports and documents filed from time to time by Animas Corporation with the Securities and Exchange Commission for a discussion of these and other important risk factors. Readers are cautioned not to place undue reliance on forward-looking statements, which are made as of the date of this press release. Animas Corporation undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or for any other reason.

SOURCE: Animas Corporation

Animas Corporation
Investor and Media Contact:
Rick Baron, 610-644-8990, ext. 1168
richard.baron@animascorp.com