Inkine Earns Milestone Payment as Zeria Pharmaceutical Advances Development of Tablet Purgative -Visicol- For Sale in Japan

BLUE BELL, Pa.--()--March 29, 2005--InKine Pharmaceutical Company, Inc. (Nasdaq: INKP) today announced that it has earned a $1.0 million milestone payment from Zeria Pharmaceutical Company, LTD., InKine's licensee for sodium phosphate tablets for use as a colonic purgative, bowel cleansing agent or laxative for sale in Japan. Under the terms of the license agreement, $1.0 million was payable to the Company upon the submission of a new drug application to Japan's Ministry of Health, Labor, and Welfare (MHLW) for the licensed product. An additional milestone will be payable to InKine under the license upon the MHLW approval of a new drug application for the licensed product. Under the terms of the Company's license, the ALW Partnership, the owners of the Visicol(R) patent, shall receive a royalty from InKine in the amount of $300,000 as a result of the Zeria milestone payment.

"Development milestone payments such as these represent the continuing realization of our global strategy to create collaborations to fully maximize the value of Visicol(R)," said Leonard S. Jacob, M.D., Ph.D., Chairman and Chief Executive Officer of InKine. "We are delighted to work with our collaborators to effectively deliver our products to patients around the world," added Dr. Jacob.

About InKine Pharmaceutical

InKine Pharmaceutical Company, Inc. is a publicly traded specialty pharmaceutical company focused on developing and commercializing pharmaceutical products for the diagnosis and treatment of gastrointestinal disorders. The Company's development strategy is to acquire late-stage drug candidates with short time lines to commercialization. The Company's franchise product, Visicol(R) is the only tablet purgative preparation indicated for bowel cleansing prior to colonoscopy. InKine's second product, IB-Stat(R), is an oral hyoscyamine spray for the treatment of a variety of indications. Additionally, the Company is developing INKP-102, an advanced generation purgative, which recently completed Phase III clinical trials for bowel cleansing prior to colonoscopy and studying Visicol(R) for use as a laxative in treating patients with chronic constipation. For further information, please visit InKine on its web site http://www.inkine.com.

In addition to historical facts or statement of current condition, this press release may contain forward-looking statements. Forward-looking statements provide InKine's current expectations or forecasts of future events. These may include statements regarding anticipated scientific progress on its research programs, development of potential pharmaceutical products, interpretation of clinical results, prospects for regulatory approval, manufacturing development and capabilities, market prospects for its products, sales and earnings projections, and other statements regarding matters that are not historical facts. You may identify some of these forward-looking statements by the use of words in the statements such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" or other words and terms of similar meaning. InKine's performance and financial results could differ materially from those reflected in these forward-looking statements due to general financial, economic, regulatory and political conditions affecting the biotechnology and pharmaceutical industries as well as more specific risks and uncertainties such as those set forth in its reports on Form 10-Q and 10-K filed with the U.S. Securities and Exchange Commission. Given these risks and uncertainties, any or all of these forward-looking statements may prove to be incorrect. Therefore, you should not rely on any such factors or forward-looking statements. Furthermore, InKine does not intend (and it is not obligated) to update publicly any forward-looking statements. This discussion is permitted by the Private Securities Litigation Reform Act of 1995.

Contacts

InKine Pharmaceutical Company, Inc.
Robert Apple, 215-283-6850
or
Wolfe Axelrod Weinberger Assoc. LLC
Don Weinberger, 212-370-4500
don@wolfeaxelrod.com

Contacts

InKine Pharmaceutical Company, Inc.
Robert Apple, 215-283-6850
or
Wolfe Axelrod Weinberger Assoc. LLC
Don Weinberger, 212-370-4500
don@wolfeaxelrod.com