Noven Signs Transdermal Development Agreement With Procter & Gamble Company

-- Noven Pharmaceuticals, Inc. (NASDAQ: NOVN) today announced that it has signed an agreement to develop new prescription transdermal delivery systems for P&G Pharmaceuticals, Inc. (P&G), a subsidiary of The Procter & Gamble Company.

Under the agreement, Noven is entitled to receive up to $7.8 million, payable in installments if certain development milestones are achieved. Development efforts under the agreement are expected to continue through 2004.

"We are very pleased to establish a development collaboration with the emerging pharmaceutical unit of one of the world’s largest consumer products companies," said Robert Strauss, Noven's President, CEO & Chairman. “Although we have not disclosed the compounds incorporated in the new patches, they target a therapeutic category with outstanding commercial potential."

"P&G's selection of Noven as its development partner further validates our technology and advances our business diversification strategy. With a product pipeline that includes dextroamphetamine and fentanyl patches, as well as over 20 other formulated patch products, we are optimistic that additional development collaborations lay ahead."

About Noven
Noven Pharmaceuticals, Inc., headquartered in Miami, Florida, is a leading developer of advanced transdermal drug delivery technologies and prescription transdermal products. Together with Novartis Pharmaceuticals Corporation, Noven owns a profitable women’s health products company called Novogyne Pharmaceuticals. Noven’s existing products include advanced estrogen transdermal delivery systems (including Vivelle-Dot®, licensed to Novogyne, and Estradot®, licensed to Novartis Pharma AG) and combination estrogen/progestin transdermal delivery systems (including CombiPatch®, licensed to Novogyne, and Estalis®, licensed to Novartis Pharma AG). With a range of additional products in development, including MethyPatch® for ADHD (licensed to Shire Pharmaceuticals Group plc), Noven is committed to becoming the world’s premier transdermal drug delivery company. For further information on Noven, including product licensing opportunities, visit www.noven.com.

Contact:
Investor & Media Contact

Joseph C. Jones
Vice President – Corporate Affairs
Noven Pharmaceuticals, Inc.
305-253-1916

Product Licensing Inquiries
Pavan Handa
Executive Direcor – Business Development
Noven Pharmaceuticals, Inc.
305-964-3330