IGI Anticipates Profit for Fourth Quarter

BUENA, NJ December 13, 2006 - IGI, INC, (AMEX:IG - News) a manufacturer of cosmetics, skin care, and consumer products utilizing Novasome® lipid vesicle encapsulation and other technologies, announced today it intends to discuss ongoing business operations on its investor conference call scheduled for 9:30 a.m. EST, December 14, 2006.

Highlights to be discussed include:

• The Company expects to report a profit for the current fiscal quarter.
• IGI received $457,000 from the sale of its New Jersey net operating losses.
• IGI received initial $250,000 payment from DermWorx.
• The Company developed a product line for PSI, Inc., headed by Dr. Mark Pinsky. The products utilize a breakthrough technology incorporating the Novasome® encapsulation technology. PSI, Inc. is currently in negotiations with three large cosmeceutical companies to distribute the line.
• One of IGI’s largest customers intends to launch 10 new products previously developed by IGI using the Company's Novasome® topical delivery technology. Shipments are scheduled for the first quarter of 2007.
• IGI has received the initial payment for the development of a new product line for Complexions by Dr. Watts.
• The Company developed 2 new products for Your Total Image, LLC, products are scheduled to ship prior to the end of the year.
• A new product was produced for Superfoods LLC, the first shipment was completed on December 11, 2006.
• IGI received a $1 million revolving line of credit for a term of one year from PharmaChem Laboratories.
• IGI expects to close its previously announced sale-leaseback of its manufacturing facility by the end of the year.
• The Company intends to introduce a President and Chief Executive Officer to implement the Company's business plan and expects the position to be filled by early January.
• The Company's present CEO, Frank Gerardi, will remain Chairman of the Board.

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., Apollo Pharmaceutical, Inc. and Vetoquinol USA. 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 markets its own line of proprietary products that diminish the visual affects of aging. These products can be found at www.miaj.com.

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.

Contact:

	Frank Gerardi
	Chairman & Chief Executive Officer
	IGI, Inc.
	856-697-1441 ext. 102
	gerardi00@aol.com