Emisphere Technologies and Alchemia to Research an Oral Formulation of Fondaparinux with Eligen® Technology

Emisphere Technologies, Inc. (OTCBB:EMIS) and Alchemia Ltd. (ASX:ACL) today announced that they are joining efforts to develop an oral formulation of the anti-coagulant drug fondaparinux with Emisphere’s Eligen^® Technology.

Emisphere’s broad-based drug delivery platform, known as the Eligen^® Technology, uses proprietary, synthetic carriers to enhance the oral bioavailability of a drug without altering its chemical form or biological activity. Fondaparinux, an anti-coagulant used for the prevention of deep vein thrombosis, is marketed in injectable form as Arixtra^® by GlaxoSmithKline. Arixtra has been off patent since 2002 but, due to the complexity of its synthesis, there is currently no approved generic or alternative source of commercial scale active pharmaceutical ingredient ("API”). Alchemia has developed a novel, patent protected, synthesis for the manufacture of fondaparinux at commercial scale. In March 2009, Alchemia’s manufacturing and U.S. marketing partner, Dr Reddy’s Laboratories (NYSE: RDY) submitted an ANDA to the U.S. FDA for a generic version of the injectable form of fondaparinux.

"An oral formulation of fondaparinux could dramatically increase the market potential for fondaparinux. Based on what we know from our experience with other chemically-related anti-coagulants, the profile of fondaparinux should fit very well with the Eligen^® Technology given its half life and safety profile. Although developing an oral formulation of an injectable compound is always challenging, this project could produce substantial benefits for the medical community. The combination of Emisphere’s delivery technology and Alchemia’s fondaparinux may ultimately allow us to bring an oral anti-coagulant to market in an accelerated fashion,” said Michael Novinski, President and Chief Executive Officer of Emisphere Technologies.

"We have already seen preclinical data suggesting that enhanced levels of oral absorption can be achieved for fondaparinux. If we can successfully optimize the dose formulated with the Eligen^® Technology from Emisphere it would open up a host of medically and commercially compelling opportunities for fondaparinux,” said Pete Smith, CEO of Alchemia Ltd. "We will initially evaluate a number of different formulations in order to optimize oral bioavailability and pharmacokinetics, with the aim of then rapidly moving into human clinical studies.”

About Emisphere Technologies, Inc.

Emisphere is a biopharmaceutical company that focuses on the unique and improved delivery of therapeutic molecules or nutritional supplements using its proprietary Eligen^® Technology. The Eligen^® Technology can be applied to the oral route of administration as well as other delivery pathways such as buccal, rectal, inhalation, intra-vaginal or transdermal. The company’s website is www.emisphere.com.

About Alchemia Limited

Alchemia is a drug discovery and development Company founded on its chemistry expertise. The Company’s lead program is fondaparinux (a generic version of GlaxoSmithKline’s Arixtra^®, a synthetic anticoagulant mainly used for the prevention of deep vein thrombosis). Fondaparinux is expected to generate positive cash-flows for the Company commencing in the second half of calendar 2010. Alchemia is also developing HA-Irinotecan, the most advanced product employing its HyACT^® tumor targeting technology. A pivotal Phase III study of HA-Irinotecan in metastatic colorectal cancer patients is currently being initiated. For further details see www.alchemia.com.au

Safe Harbor Statement Regarding Forward-Looking Statements

The statements in this release and oral statements made by representatives of Emisphere relating to matters that are not historical facts (including without limitation those regarding the timing or potential outcomes of research collaborations or clinical trials, any market that might develop for any of Emisphere's product candidates and the sufficiency of Emisphere's cash and other capital resources) are forward-looking statements that involve risks and uncertainties, including, but not limited to, the likelihood that future research will prove successful, the likelihood that any product in the research pipeline will receive regulatory approval in the United States or abroad, the ability of Emisphere and/or its partners to develop, manufacture and commercialize products using Emisphere's drug delivery technology, Emisphere's ability to fund such efforts with or without partners, and other risks and uncertainties detailed in Emisphere's filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in Emisphere's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (file no. 000-17758) filed on March 16, 2009 and as amended on Form 10-K/A as filed on April 30, 2009, and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2009 as filed on November 9, 2009.