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DUSA Pharmaceuticals Receives Orphan Drug Desi gnation for Levulan,PDT to Treat Esophage al Dysplasia

's proprietary light delivery system which allows the endoscopic light treatment to be performed more rapidly, under direct visualization and with greater precision.

About the Orphan Drug Act

The Orphan Drug Act (ODA) encourages drug companies to seek regulatory approval for products that treat a rare disease or condition that affects a relatively small number of people. Once the company receives approval from the Food and Drug Administration to market its orphan-designated product, the company is entitled to seven (7) years of marketing exclusivity for the orphan indication. Orphan Drug Designation also makes it possible to apply for various government funding grants and tax incentives to support the development program for that indication.

About DUSA Pharmaceuticals, Inc.

DUSA Pharmaceuticals, Inc. is an integrated dermatology pharmaceutical company focused primarily on the development and marketing of its Levulan(R) Photodynamic Therapy (PDT) technology platform, and complementary dermatology products. Levulan PDT is currently indicated for the treatment of minimally to moderately thick actinic keratoses (Grade 1 or 2) of the face or scalp, and is being studied for the treatment of acne. DUSA's other dermatology products include ClindaReach(TM), Nicomide(R) and the AVAR(R) line. DUSA is also sponsoring research for additional indications for internal uses of Levulan PDT. DUSA is based in Wilmington, MA. Please visit the company's website at www.dusapharma.com for more information.

Forward Looking Statements

Except for historical information, this news release contains certain forward-looking statements that involve known and unknown risk and uncertainties, which may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the statements made. These forward-looking statements relate to belief that Levulan
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