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NUCRYST and Smith & Nephew Revise Agreements
Date:10/1/2007

develop together using NUCRYST's SILCRYST(TM) technology.

- New products developed alone by NUCRYST that contain SILCRYST(TM)

technology or any new form of nanocrystalline silver developed by

NUCRYST will be initially offered to Smith & Nephew. If Smith &

Nephew declines to commercialize any of these products on terms

acceptable to NUCRYST, NUCRYST will be free to pursue other

commercialization options.

- NUCRYST will contribute services towards the joint development of new

products with Smith & Nephew up to a maximum amount per year

equivalent to 1.5% of Smith & Nephew's sales of Acticoat(TM) products

in the year. This replaces a system whereby Smith & Nephew reimbursed

NUCRYST for all of its product development costs.

- Royalty rates will be maintained, except for the elimination of a

supplemental royalty that was payable to NUCRYST only if certain

gross profit margins were achieved on sales of Acticoat(TM) products

over a specified threshold.

The overall combined impact of all of the above changes on NUCRYST's financial results is not expected to be significant in 2007. However, the changes could have a material adverse affect on NUCRYST's quarterly financial results in subsequent periods depending on the timing of payments made to and received from Smith & Nephew, Smith & Nephew's sales of Acticoat(TM) products, the achievement of cost savings by NUCRYST, and the receipt by NUCRYST of further milestones payments. In the longer term, NUCRYST expects the amendments to the agreements to further facilitate its ongoing efforts to expand NUCRYST's business opportunities while enabling it to continue to support Smith & Nephew to realize the future growth potential of the Acticoat(TM) products.

NUCRYST Pharmaceuticals develops, manufactures and commercializes medical products that fight infection and inflammation usi
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SOURCE NUCRYST Pharmaceuticals Corp.
Copyright©2007 PR Newswire.
All rights reserved

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