December 18, 2001

POLYDEX PHARMACEUTICALS REPORTS
FINANCIAL RESULTS OF THIRD QUARTER

Toronto, Ontario, December 18, 2001 -- Polydex Pharmaceuticals Ltd. (NASDAQ:POLXF) (BSE:PXL) has filed a 10-Q, reporting the financial results of the third 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.

Polydex reported income from operations at the Dextran plant of $211,260, an increase over the 3rd quarter of fiscal 2001 of $93,163, however Vet Labs income from operations during the same period amounted to $3,045, a decrease of $354,265. This decrease in income from operations at the Vet Labs subsidiary is primarily due to a significant decrease is sales of the injectable product line, the highest margin products. Sales of all veterinary products have experienced a severe decline due to the general economic slowdown.

Management expects sales and margins to continue at current levels at Dextran Products in the fourth quarter, but with the continued economic slowdown, sales levels at Vet Labs are expected to be lower in the fourth quarter of fiscal 2002 than was reported in the same quarter last year.

"Polydex's business fundamentals remain strong" offers President George Usher "and we continue to enjoy collaborative relationships working toward the realization of our future prospects in the human pharmaceutical pipeline".

POLYDEX PHARMACEUTICALS LIMITED AND SUBSIDIARIES
THIRD 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