NexMed Announces the Ability of the NexACT® Technology to Deliver Drugs Orally and with Enhanced Bioavailability

NexMed, Inc. (Nasdaq: NEXM), a specialty CRO and a developer of products based on the NexACT® technology, today announced that pre-clinical results from its research and development group at Bio-Quant successfully demonstrated the ability of the NexACT technology to deliver an oral formulation of Taxol® (paclitaxel) and to enhance the drug’s bioavailability by approximately ten-fold through this oral administration. Taxol, a first line chemotherapy drug used to treat breast, lung and ovarian cancers, is currently administered through an intravenous infusion that can take up to 24 hours to complete.

Dr. Bassam Damaj, NexMed’s Chief Executive Officer stated, “The results from these proof of concept studies are exciting and support our belief that NexACT can be successfully used to enhance oral bioavailability of a broad range of drugs, which could include our proprietary drug candidates, generic drugs and proprietary drugs owned by others who are developing second-generation formulations to provide extended patent protection with increased convenience and bioavailability. Our ability to leverage our proprietary NexACT technology in this way is expected to provide exciting new development opportunities and will no longer restrict us to the topical delivery of dermal drugs. Additional studies are ongoing to extend the validation of the technology into other classes of oral drugs.”

About NexMed

NexMed, due to its recent acquisition of Bio-Quant, is the largest specialty contract research organization (“CRO”) based in San Diego, CA and is one of the industry’s most experienced CROs for in vitro and in vivo pharmacology services and research models. NexMed has a proprietary product pipeline based on its NexACT drug delivery technology, including a late stage terbinafine treatment for onychomycosis, a late stage alprostadil treatment for erectile dysfunction, a Phase 2 alprostadil treatment for female sexual arousal disorder, and an early stage treatment for psoriasis and wound healing. For further information, go to www.nexmed.com and www.bio-quant.com.

Taxol® is a registered trademark of Bristol-Myers Squibb Company.

Forward-Looking Statement Safe Harbor

Statements under the Private Securities Litigation Reform Act: with the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risks and uncertainties that may individually or mutually impact the matters herein described for a variety of reasons that are outside the control of the Company. For example, and without limitation, there can be no assurance that the Company will be able to achieve or will continue to pursue its product development goals, that initial pre-clinical findings will be supported by later studies, or that the Company will be able to integrate its business following the Bio-Quant acquisition in a successful manner.