(Fort Worth, TX) --- H. Paul Dorman, Chairman and CEO of Fort Worth-based DFB Pharmaceuticals, Inc., has announced that DFB has acquired the wound management activities of EpiSource SA, an IsoTis OrthoBiologics Company (SWX/Euronext: ISON; TSX: ISO).

        DFB provides technology-driven products, outsourcing services, and licensing opportunities to the healthcare industry worldwide through its affiliate companies, contract partners, and branded marketing organizations. EpiSource SA, with facilities in Lausanne, Switzerland, focuses on research, development, and manufacturing of cell-based therapies.

        Transaction details were not disclosed.

        “We believe that the future of advanced wound care will include more pharmaceutical and cell-based biologic products,” said Michael E. Steadman, Senior Vice President of DFB and President of HEALTHPOINT, Ltd. Tissue Management, a DFB affiliate involved in the research, development, and marketing of branded pharmaceuticals for skin and soft tissue. “We are very committed to this future.”

        In August 2003, IsoTis OrthoBiologics and HEALTHPOINT, which is also based in Fort Worth, entered into an exclusive worldwide licensing agreement for Allox™, a cell-based product for the treatment of chronic skin wounds. In 2003, IsoTis announced the establishment of EpiSource SA to create an independent vehicle and a potential spin-off company for its wound management portfolio. Allox is the lead product of that portfolio that also includes EpiDex™ and AcuDress™ Technologies.

        “This acquisition will bring DFB to the forefront of modern therapeutics,” said Braham Shroot, Ph.D., Chief Scientific Officer and Senior Vice President for Research and Development for DFB. Dr. Shroot oversees all research and development for DFB and its affiliate companies.

        The initial focus following the acquisition will be on Allox. According to the company, Allox is a revolutionary spray delivery platform utilizing live human cells that promises to be a strong addition to the HEALTHPOINT product line by providing a powerful new treatment for wounds.

        Having led project efforts while with EpiSource, Dr. Eric Rolland is appointed General Manager and Vice President for Research and Development for the new DFB branch based in Lausanne, Switzerland. He will report directly to Dr. Braham Shroot and he will continue to direct the team of scientists who all have considerable experience in the field.

        Dr. Shroot stated that, “Allox is currently entering late stage development and we anticipate marketing approval in the US within four years.”

        “We wish DFB and our colleagues who will join DFB as part of the transaction much success,” said Pieter Wolters, Chief Executive Officer of IsoTis OrthoBiologics. “As a market leader in advanced wound care, DFB’s HEALTHPOINT is well equipped to maximize the value of our skin product portfolio.”

        IsoTis OrthoBiologics has a product portfolio that includes several highly innovative and proprietary natural and synthetic bone graft substitutes on the market and several others in development, orthobiology sales of $ 23 million in 2003, an established North American independent distribution network of 400 sales representatives, and a rapidly expanding international presence.

        Headquartered in Fort Worth, DFB provides technology-driven products, outsourcing services, and licensing opportunities to the healthcare industry worldwide through its affiliate companies, contract partners, and branded marketing organizations. DFB affiliates are HEALTHPOINT; DPT Laboratories, Ltd.; and Phyton Biotech, Inc.

        Since its inception in 1992, HEALTHPOINT has established a strong presence in the research, development, and marketing of branded pharmaceuticals, over the counter drugs, and medical devices for tissue management, dermatology, and surgical indications.

        DPT Laboratories, Ltd., is an outsourcing service organization to the pharmaceutical industry with facilities in Texas and New Jersey.

        Phyton Biotech, Inc., with facilities in New York and Germany, has a German subsidiary, Phyton GmbH, that operates the world’s largest commercial cGMP manufacturing facility for plant cell fermentation.

        DFB is on the web at www.dfb.com.

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