June 12, 2001

POLYDEX PHARMACEUTICALS LTD. REPORTS FIRST QUARTER, FISCAL 2002 RESULTS

TORONTO, Ontario, June 12, 2001 -- Polydex Pharmaceuticals Ltd. (NASDAQ:POLXF) (BSE:PXL) today announced the financial results of operations for the first quarter of fiscal 2002.

Strong demand for Polydex products continued through the first quarter of fiscal 2002. The Company experienced an equipment breakdown, resulting in limited shipments of a certain iron dextran solution. However, Management expects the strong demand to continue and to be met, since the equipment problems have been resolved.

These difficulties resulted in a pre-tax loss from operations of $65,164 or $.02 per share for the first quarter of this fiscal year versus pre-tax income of $189,601, or $0.06 per share reported in the same period last year. Sales volume for the first quarter of fiscal 2002 was $3,061,191 and $3,392,829 for the same period in fiscal 2001.

Research and Development costs increased by $3,999 over the first quarter of fiscal 2001. This expenditure totaled $97,750 this year as compared to the $93,751 expended during the same period last year, representing a 4% increase in this area. Management expects research and development costs to continue, but will benefit from the commitments of various research partners to provide continued funding. During this first quarter of fiscal 2002, development work continued on: the cellulose sulphate (Ushercell) project, the raw material for a human injectable product, and further veterinary products.

Management intends to commence further clinical trials on Ushercell during fiscal 2002. Strong, long-standing alliances with the Contraceptive Research and Development Program (CONRAD), its related organization, the Consortium for Industrial Collaboration in Contraceptive Research (CICCR) and the Program for the Topical Prevention of Contraception and Disease (TOPCAD) have helped Ushercell remain a viable candidate in the quest for development of an effective anti-microbial prophylactic.

A long-standing aim at Polydex has been to develop, produce and market its veterinary products while seeking partners who can assist in developing, manufacturing and marketing its potential human pharmaceuticals. Polydex Management secured an alliance last year relative to the development of a human iron supplement in tablet form and, with that partner, have agreed to conduct a joint animal study due to begin this year, fiscal 2002. Another agreement is intended to further the development of a human iron supplement in injectable form.

BCY Lifesciences has been awarded the rights to develop and market Usherdex, in return for future royalty payments. Polydex initially developed Usherdex, a dextran compound for the treatment of cystic fibrosis and other lung complications. BCY Lifesciences has announced successful completion of funding toward this project, completed animal toxicology studies, and plans to begin Phase I human clinical testing later this year.

Note: This press release may contain forward-looking statements, within the meaning of the United States Securities Act of 1933, as amended, and the United States Securities Exchange Act of 1934, as amended, regarding Polydex Pharmaceuticals Limited. Actual events or results may differ materially from the Company's expectations, which are subject to a number of known and unknown risks and uncertainties including but not limited to changing market conditions, future actions by the U.S. Food and Drug Administration or equivalent foreign regulatory authorities as well as results of pending or future clinical trials. Other risk factors discussed in the Company's filings with the United States Securities and Exchange Commission may also affect the actual results achieved by the Company.

CONTACT: Polydex Pharmaceuticals Limited
George G. Usher, President
(416) 755-2231
or e-mail: gu-dextran@rogers.com

Investor Relations:
North Arm Capital Services
Linda Hughes, Toll-free 1-877-945-1621
or e-mail: Linda@northarm.com