Pennsaid Product Of Dimethaid Research Inc.

Patented transdermal drug delivery technology which uses dimethysulfoxide (DMSO) to transfer active drug compounds into an injured area of the body. Using this technology, minimal amounts of the active drug enter the bloodstream. Consequently, systematic or "whole body" side effects are minimized.

PENNSAID® A topical lotion which combines Dimethaid's patented transdermal delivery technology with diclofenac, a non-steroidal anti-inflamatory drug (NSAID). It is used for treatment of pain associated with arthritis.

WF10 An immunomodulator for the treatment of AIDS, cancer and other immune disorders being developed by Oxo Chemie AG.

Dioptic Laboratories Branded and generic diagnostic and therapeutic eyecare products.

1. Dimethaid Health Care Ltd. (Canada)

• Develops and commercializes PENNSAID^® and related products.

2. Dimethaid International Inc. (Barbados)

• Holds non-Canadian rights to transdermal delivery technology and PENNSAID^®.

3. Dimethaid Immunology Inc. (Ontario)

• Holds all Canadian marketing and distribution rights to WF10 and related products.

4. Akorn Pharmaceuticals Canada Limited (operating as "Dioptic Laboratories") (Ontario)

• Markets branded ophthalmic products.

5. Dimethaid Management Inc. (Canada)

• Owns the land and building for the Company's principal place of business

6. Dimethaid Manufacturing Inc. (Canada)

• Manufactures PENNSAID^® and other company products

PATENTS:

PENNSAID^® (Canada, US and Europe)

• a transdermal carrier
• active ingredients deliver medication through the skin (topically) to a specific site
• drugs that are now given orally, by vein or intra-muscularly, can be applied topically in lesser dosages
• fewer side effects, reduced toxicity and rapid relief at the site of application
• developed by the late Dr. Edmund B. Sandborn.

Dimethaid's topical PENNSAID(R) equivalent to oral osteoarthritis drug

    Results to be presented at European Conference
    TORONTO, April 7 /CNW/ - Specialty pharmaceutical developer Dimethaid
Research Inc. (TSX: DMX) will present results from a new osteoarthritis study
to the European Congress of Rheumatology to be held in Lisbon, Portugal,
June 18-21. The study, comparing the company's topically applied PENNSAID(R)
with a similar oral treatment, was conducted across Canada in a large group of
patients suffering from knee osteoarthritis (OA).
    Lead investigator Dr. Peter Tugwell, Professor of Medicine, Faculty of
Medicine, University of Ottawa/Ottawa Hospital, will deliver an oral
presentation of the results at the conference, expected to attract some 8,000
delegates representing medical specialists, industry insiders and patient
advocacy groups from around the world.
    "This is a prestigious opportunity," said Dr. Judith Burgess, Dimethaid's
director of research and development. "This work provides definitive answers
to how well our commercial product stands up to oral anti-arthritic
medication."
    The double-blinded trial compared an oral nonsteroidal anti-inflammatory
drug (NSAID), to PENNSAID. Dimethaid's topical was equivalent to the oral in
relieving symptoms associated with knee OA. The study also compared safety, a
crucial consideration given concerns about the serious side effects reported
during treatment with oral NSAIDs. Skin reactions were the most frequently
reported adverse events associated with PENNSAID treatment, while the oral
NSAID was linked to a variety of gastrointestinal problems.
    Market researchers Frost & Sullivan estimate that NSAID spending
throughout the European Union amounts to $2.5 billion (US).
    About Dimethaid Research Inc.
    Dimethaid Research Inc. is a publicly traded, Canadian, specialty
pharmaceutical company headquartered in Markham, Ontario, with manufacturing
facilities in Varennes, Québec and Wanzleben, Germany. The company develops
and commercializes targeted therapeutic drugs designed to produce minimal side
effects. Dimethaid's two technology platforms focus on transcellular drug
delivery and immune system regulation. Products have potential applications in
such areas as osteoarthritis, onychomycosis and HIV/AIDS. For more
information, please visit www.dimethaid.com.
    This release may contain forward-looking statements, subject to risks and
uncertainties beyond management's control. Actual results could differ
materially from those expressed here. Risk factors are discussed in the
Company's annual information form filed with the securities commissions in
each of the provinces of Canada. The Company undertakes no obligation to
revise forward-looking statements in light of future events.
    %SEDAR: 00002418EF
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For further information: Dimethaid Research Inc., Investor Relations,
Tel. (905) 415-1446, Email: info@dimethaid.com;
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