Contact:
Frank Gerardi
Chairman & Chief Executive Officer
IGI, Inc.
856-697-1441 ext. 102
www.askigi.com
BUENA, NJ September 27, 2006 - IGI, INC. (AMEX: IG) a manufacturer of cosmetics, skin care, and consumer products for third parties utilizing Novasome® lipid vesicle encapsulation and other technologies, announced today that it has retained Landmark Financial Corporation to act as its financial advisor to assist the Company in exploring strategic alternatives to realize the Company's potential. These alternatives could include, but are not limited to, raising additional development capital for IGI, and/or the combination, sale or merger of the Company.
“Our Board of Directors and management believe that our current share price does not fully reflect the intrinsic value of the Company and the numerous opportunities available to it," said Frank Gerardi, Chairman and CEO. "Engaging Landmark, which has over twenty years experience in assisting emerging growth companies maximize shareholder value, will help us to systematically examine the full range of alternatives available to us while we continue to focus on growing our business."
“We are delighted to be working with IGI,” said John Moroney, Landmark’s President. “We are very impressed with the strength and breadth of the company’s patent portfolio and with its unique Novasome® technology, for which there are numerous untapped potential applications. We feel that the company is significantly undervalued, with the potential to secure a significant portion of the $25 billion global skin care market.”
In making the announcement, IGI advised that it has not set a definitive timetable for completion of its evaluation and further that there can be no assurances that the evaluation process will result in any specific transaction. The company also advised that it does not intend to disclose developments regarding its evaluation of strategic alternatives unless and until its Board of Directors approves a definitive transaction.
IGI is a company committed to growth by applying proprietary technologies to achieve cost-effective solutions for varied customer needs. IGI offers the patented Novasome® lipid vesicle encapsulation technology which contributes value-added qualities to cosmetics, skin care products, dermatological formulations and other consumer products, providing improved dermal absorption, low potential for irritations, controlled and sustained release as well as improved stability. IGI has licensed Novasome® lipid vesicle encapsulation technology to leading global dermatological and skin care companies including Johnson & Johnson Consumer Products, Inc., Estee Lauder Companies, Chattem Inc., Genesis Pharmaceutical, Inc. and Apollo Pharmaceutical, Inc. IGI sub-licensed the rights to obtain FDA approval for and market IGI's PTH (1-34) compound using Novasome® lipid vesicle encapsulation technology for psoriasis, which is being reformulated for Phase II clinical trials, to Manhattan Pharmaceuticals, Inc. IGI is also exploring the licensing of the topical PTH (7-34) compound for the prevention/treatment of chemotherapy induced-alopecia in patients undergoing chemotherapy. IGI develops products that diminish the visual affects of aging. These products can be found at www.miaj.com. The cosmetics and skin care industry is experiencing tremendous growth, with global sales of anti-aging treatments alone topping out at $9.9 billion in 2004, up 71% from the previous year (Source: TIME magazine). Globally, the skin care market is over $50 billion. IGI is also developing topical products for localized pain.
This report contains forward-looking statements relating to IGI's hopes and expectations for the future. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "will," "possible," "one time," "provides an opportunity," "continue" and similar expressions are intended to identify forward-looking statements. Such statements involve a number of risks and uncertainties and actual future events and results could differ materially from those indicated by such forward-looking statements due to general economic conditions, and the risk factors detailed in IGI's periodic reports and registration statements filed with the Securities and Exchange Commission.