AGI Dermatics Announces Élan Stock Sale to Olecranon Investor Group

AGI Dermatics Is a World Leader in DNA Repair Technology

FREEPORT, N.Y., February 10, 2005 -- Applied Genetics Inc. Dermatics, a world leader in DNA repair technology, announced today that investor group Olecranon has purchased all the AGI Dermatics shares held by Élan Corp. in an all-cash transaction. The shares comprise over 10 percent of the outstanding AGI Dermatics Class A common stock.

Daniel B. Yarosh, PhD, President of AGI Dermatics, says. "We are delighted to welcome these motivated and accomplished biotech partners as stockholders in our company. This group has the demonstrated skills in finance and business development to help us reach our goal of commercial application of DNA repair technology."

Olecranon's Harmon Aronson, says, "AGI Dermatics' position in skin and sun care is in a key place of convergence of medical and consumer products. We recognize the success of the Dimericine^® Phase III clinical trial and the tremendous potential in their products for prevention of skin cancer."

Adds Aronson, "We believe that AGI Dermatics also has a compelling plan to change the way consumers get their sun protection. We are committed to delivering the resources Dan and the AGI Dermatics team need to bring their breakthroughs to market."