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SurModics, Inc. to Invest in InnoRx, Inc.

Companies Collaborating on Drug-Delivery Application in Ophthalmology Market

EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--Jan. 26, 2004--SurModics, Inc. (Nasdaq:SRDX), a leading provider of surface modification solutions to medical device manufacturers, today announced an agreement to invest up to $3.5 million in InnoRx, Inc., an Alabama-based drug delivery company developing novel therapies for the ophthalmology market.

In collaboration with SurModics, InnoRx is developing a patented, implantable coil to deliver therapeutic agents in the eye to treat various retinal diseases. This product utilizes SurModics' site-specific drug delivery technology. InnoRx plans to begin animal studies in the first half of 2004 and human clinical trials later in the year.

"We signed a license agreement with InnoRx last year, and have been working with them for some time now," said Dale Olseth, chairman and CEO of SurModics. "Now that their product has progressed and InnoRx is preparing to conduct animal studies, SurModics is pleased to deepen our relationship with InnoRx and make this investment. In our strategic plan, we identified four key markets with strong potential for our coating technology. Our investment in InnoRx reflects our belief that ophthalmology holds significant growth opportunities for the future."

Dr. Michael Chambers, president of InnoRx, commented, "SurModics is respected world-wide for its drug-delivery coating technology and expertise. This technology and SurModics' investment are important steps forward in the clinical development of practical and effective therapies for eye disease."

Dr. Eugene de Juan, chairman of InnoRx and inventor of the drug delivery system, is presenting an overview of this application and the collaboration between the two companies at SurModics' annual meeting today, January 26, 2004, at 4:00 pm CT. A live and archived Webcast of the presentation will be available at the investors' portion of SurModics Web site, www.surmodics.com.

About SurModics, Inc.

SurModics, Inc., a leading provider of surface modification solutions, licenses its patented coating processes to medical device manufacturers around the world. A significant portion of SurModics' revenue is generated through royalties on the sale of coated products. SurModics' Internet address is www.surmodics.com.

About InnoRx, Inc.

InnoRx, Inc. targets the development of drugs and drug delivery systems for ocular disease. InnoRx is a closely held private company founded by Dr. Eugene de Juan, Jr., a renowned retinal surgeon who currently serves as CEO of The Doheny Retina Institute at the University of Southern California. Dr. de Juan was formerly the Joseph Green Chair of Ophthalmology for Age-Related Macular Degeneration at the Wilmer Institute of Johns Hopkins University. Johns Hopkins University owns a minority stake in InnoRx.

Safe Harbor For Forward Looking Statements

Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and SurModics intends that such forward looking statements be subject to the safe harbor created thereby. SurModics does not undertake an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT: SurModics, Inc., Eden Prairie Philip D. Ankeny, 952-829-2700 SOURCE: SurModics, Inc.