Innoject, Inc. Receives Grant From National Institutes of Health to Study the Use of Its Injection System for Influenza Immunization

June 9, 2004

Innoject, Inc. announced today that it was awarded the first year budget of a Small Business Innovation Research (SBIR) grant from the National Institute of Allergy and Infectious Diseases (NIAID) in the amount of approximately $484,000. The NIAID is a component of the National Institutes of Health (NIH). These grant funds will first be used to complete development of two new versions of the Company's auto-injector technology. Then, in conjunction with FDA clearance expected later this summer, Innoject and the Virginia Commonwealth University Center for Drug Studies will execute plans for a clinical study. In this study, expected to commence in the fall of 2005, the outcomes of flu shots self-administered using Innoject's auto-injector technology will be compared to outcomes of flu shots administered by medical professionals using conventional techniques. The study will utilize commercially available Influenza vaccine. This two-year program will be funded almost entirely from the NIH grant. Rick Gillespie, President and co-founder of Innoject, Inc., has been named Principal Investigator for the program.

Upon receiving the grant, Gillespie said, "We are proud to have the confidence of the NIAID as evidenced by this grant award. This award is the result of a comprehensive effort by people at Innoject and VCU that worked together through a complex process on a very tight schedule. This program will allow Innoject to accelerate the development of its auto-injector technology and validate an important application -- its use by individuals for self-inoculation. We look forward to successfully completing Phase I of this program in concert with NIAID and our colleagues at VCU."

Innoject, Inc. co-founder and Chairman of the Board M. Mark Lesher said, "The award of this grant from NIH/NIAID represents an important first step in the development of a viable means by which self-administration of vaccines such as Influenza can be realized. We believe this program will ultimately enhance our nation's ability to prepare for an act of bio-terrorism or respond to natural pandemics. Our partnership with Dr. Victor Yanchik and his colleagues at the Virginia Commonwealth University has greatly enhanced this program's development and likelihood for success. Through this partnership, and the funds made available through this grant award, we expect to prove that self-administration of the influenza vaccine by untrained users is equivalent in terms of safety and effectiveness to inoculations administered by trained medical professionals. We believe the NIH will recognize that our technology could easily be adapted for the self-administration of a wide range of drugs and vaccines on a commercial level. I want to personally thank all involved on both the local and national levels for their support of and assistance to Innoject during our early stages of development. That assistance truly made it possible for us to receive this funding from the NIH."

Innoject, Inc. CEO Richard M. Winters said, "Our vision of improving the quality of life of patients who are physically unable or unwilling to use needles, syringes and vials at home will become a reality much sooner as a result of this award. Furthermore, we are pleased to be part of advancing the important national priority of having reliable technologies available for rapidly providing mass immunizations against infectious diseases."

About Innoject, Inc.

Innoject, Inc. is a privately held company dedicated to improving the science of injectable drug delivery. The company's flagship product, the Innoject auto-injector, is currently in late stage development. This product is designed to automate all three steps of the injection process -- needle insertion, drug delivery, and needle withdrawal -- all with the push of a button. Innoject, Inc. has its principal facilities in Athens, Texas and additional offices in Clarksville, Texas.

To learn more about the National Institute of Allergy and Infectious Diseases, please visit their website at http://www.niaid.nih.gov.

Statements included in this press release that are not historical in nature are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include those related to: the acceptance of Innoject Inc.'s product offerings by other companies; and the successful development, FDA clearance, and commercialization of products and technologies in the pipeline. Innoject Inc. cautions readers that forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially. Such risks and uncertainties include all of the risks and factors identified from time to time in the Innoject Inc.'s reports filed with the U.S. Securities and Exchange Commission. Innoject Inc. claims the protection of the Safe Harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

Contact:
Richard M. Winters
CEO
Innoject, Inc.
P.O. Box 469
Athens, TX 75751
Phone: (972) 722-0827
dick.winters@innoject.com
http://www.innoject.com