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IGI, Inc. Signs Five Year Manufacturing Service Agreement with Infusion Biotechnologies L.L.C.

(press release from IGI, INC.)

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BUENA, N.J.--May 2, 2005--IGI, INC. - has signed a Manufacturing Services Agreement with Infusion Biotechnologies L.L.C. The agreement calls for IGI to be the sole manufacturer for a new line of high end cosmetics encapsulated in the NovasomeŽ nano-particle delivery technology. Eight formulations have been approved and two are pending and will be marketed through large department and specialty stores. Production will begin in the third quarter for an early 2006 launch.

Susan Ramus, cofounder of Infusion Biotechnologies, started in skincare by experimenting with natural ingredients from the sea and then expanded further using her expertise to become the Director of Operations for NV Perricone M.D. Cosmeceuticals where she helped the line expand from $4 million in product sales in 1999 to over $50 million in 2002. Ms. Ramus also helped design packaging, labeling and reformulation for Dr. Frederic Brandt. Dr. Albert J. LaTorra her cofounder is Director of Columbia Hospital's (West Palm Beach, FL.) Wound Center and was the pioneer of the first Wound Care Center in the US. He is also a board certified Surgeon. It is through their joint studies that Infusion Biotechnologies, L.L.C. was formed.

"IGI's chemists have worked with Ms. Ramus' and cofounder Dr. Albert J. LaTorra's formulations for the past eighteen months incorporating the highest quality actives from around the world to produce products with the NovasomeŽ nano-particle delivery technology. This product line uses only clinically tested actives at or above their tested efficacious levels. The product line is expected to enter into clinical trials whose protocol was written and will be overseen by a major Medical University," stated Frank Gerardi, IGI's Chairman and CEO.

IGI is a company committed to growth by applying proprietary technologies to achieve cost-effective solutions for varied customer needs. IGI offers the patented NovasomeŽ nano-vesicular, transdermal delivery technology which contributes value-added qualities to cosmetics, skin care products, dermatological formulations and other consumer products, providing improved dermal absorption, controlled and sustained release as well as improved stability and greater ease of formulation. IGI has licensed NovasomeŽ nano-vesicular delivery technology to leading global dermatological and skin care companies including Johnson & Johnson Consumer Products, Inc., Estee Lauder Corporation, Chattem Inc., Genesis Pharmaceutical, Inc. and Apollo Pharmaceutical, Inc., and recently sub-licensed the rights to obtain FDA approval for and market IGI's PTH (1-34) compound using NovasomeŽ nano-vesicular delivery technology for psoriasis, which is slated 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 has licensed the UltraCem(TM) electroless nickel boron plating technology from UCT Coatings, L.L.C. This patented technology is used to enhance the wear resistance, hardness, lubricity, temperature tolerance and corrosion resistance for precision metal components. There are a broad range of applications for this technology including the automotive and aerospace industries.

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.

www.askigi.com
105 Lincoln Avenue
Buena, NEW JERSEY 08310
+1 856 697-1441
+1 800 225-0270

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