September 14, 2001

POLYDEX PHARMACEUTICALS REPORTS FINANCIAL RESULTS OF SECOND QUARTER USHERCELL AND USHERDEX CONTINUE TO ADVANCE

Toronto, Ontario, September 14, 2001 -- Polydex Pharmaceuticals Ltd. (NASDAQ:POLXF) (BSE:PXL) today filed a 10Q, reporting the financial results of the second quarter of fiscal 2002. The operations of the Company are carried on through Dextran Products Limited in Canada and through Chemdex in the United States, carrying on business through its wholly owned subsidiary, Veterinary Laboratories, Inc.

Relationships with various research partners remain the cornerstone of the advancement of Polydex's human pharmaceutical compounds. Funding continues to be available from these valuable partners. The Contraceptive Research and Development Program (CONRAD), and the Consortium for Industrial Collaboration in Contraceptive Research (CICCR), together with the Rush Medical Center in Chicago, continue important research and development of the cellulose sulfate gel known as Ushercell. Pre-IND tests have indicated that this gel holds great promise as a topical prophylactic for sexually transmitted diseases, including AIDS, and as a contraceptive. Two Phase I human clinical trials, funded by CICCR, to test the safety and tolerance of this gel, have been successfully completed. CONRAD remains committed to the continued funding necessary for the further development and clinical testing of Ushercell.

Another promising compound initiated by Polydex is Usherdex, a carbohydrate technology expected to be useful in alleviating breathing difficulties experienced by patients with such diseases as Cystic Fibrosis (CF), Chronic Obstructive Pulmonary Disease (COPD) and other lung disorders. Usherdex, the first of our patented human pharmaceuticals to be sublicensed out to a strategic partner for development, continues to reach milestones under the leadership of BCY LifeSciences Inc. BCY announced this week that patient enrolment had been completed and that initial dosing had started for a Phase I trial for Usherdex. BCY refers to the Usherdex compound by the name DCF 987. In making the announcement, Dr. David Speert, one of the founding scientists and a member of BCY's Pulmonary Clinical Advisory Board, informed that the initial patient dosing was completed with no reportable incidences. Dr. Speert added "I have been working with DCF 987 for some time now and am excited that the clinical studies are underway. I believe DCF 987 will be safe for inhalation therapy and will be successful in the clinic." BCY also announced, subsequent to the initial announcement that the initial dosing for all patients had commenced over the weekend, without a reportable incidence.

In the 10Q filing, Polydex reported a pre-tax loss from operations of $90,969, equal to $0.05 per share. This compares to last year's loss of $108,674 ($0.05 per share).

Sales at Vet Labs are seasonally slow during the second quarter, as large animals are put out to pasture where they gain necessary vitamins from natural grazing. When these animals move back indoors, the need for vitamins and supplements is greater.

POLYDEX PHARMACEUTICALS LIMITED AND SUBSIDIARIES
SECOND QUARTER RESULTS, FISCAL 2002
(Unaudited figures, stated in U.S. dollars)

Polydex Pharmaceuticals Ltd., based in Toronto, Ontario, Canada, is engaged in the research, manufacturing and marketing of biotechnology-based products for veterinary and human pharmaceutical industries worldwide. It is Polydex's mandate to research, develop and market veterinary pharmaceutical products in a hands-on (concept to consumer) fashion. However, the business approach differs with development of their human pharmaceutical pipeline. Here, the mandate is to research and license out potential products to valued partners for development, thereby minimizing R&D expenditures while retaining a royalty revenue stream from successful products. This is the reason that the search for development partners is so important, and is ongoing relative to all of the potential human pharmaceutical products in the Polydex pipeline.

Note: This press release may contain forward-looking statements, within the meaning of Section 27A 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