May 1, 2002

POLYDEX PHARMACEUTICALS REPORTS FINANCIAL RESULTS

USHERCELL COLLABORATION PREPARES FOR INTERNATIONAL PHASE III CLINICAL TESTING

Toronto, Ontario, May 1, 2002 -- Polydex Pharmaceuticals Limited (NASDAQ:POLXF) (BSE:PXL) reports it's first loss in five years, of $206,880, on revenues of $12,167,530.

Weak market conditions reduced the need for veterinary vitamins and supplements within the livestock industry, impacting sales primarily at the Veterinary Laboratories subsidiary of the company. George Usher, President and CEO of Polydex says "We expect sales and profits to recover as economic conditions improve during the next fiscal year and when various veterinary compounds currently before the FDA are approved for production."

Much of fiscal 2002 was devoted to the development of Ushercell. Key to further progress was identification of contractors able to synthesize, analyze, produce and validate a stable product in advance of pilot- and plant-scale production. As a result of implementation of this drug supply chain, the production of several hundred thousand applications of Ushercell is expected to soon be underway. In vitro and animal studies have shown that Ushercell is a potent contraceptive gel and a potent antimicrobial agent against sexually transmitted pathogenic organisms, including: Herpes simplex virus, Chlamydia trachomatis, human papilloma virus, and the AIDS-causing Human Immunodeficiency Virus (HIV). Ushercell works by preventing pathogens from adhering to, and eventually passing through, the walls of healthy cells. The potential market for this type of antimicrobial contraceptive is estimated to be in excess of $1 billion worldwide.

Ushercell, discovered, patented and developed by Polydex and valued partners TOPCAD (the program for the Topical Prevention of Conception and Disease) and CONRAD (the Contraceptive Research and Development Program) continues to undergo phase I safety and tolerance studies worldwide. Preparation for large-scale Phase III clinical testing at various international sites is underway.

Additionally, several new veterinary drug compounds submitted to the FDA for approval are expected by the Company to be higher margin products. Once approved, these compounds are expected to generate increased sales and, more importantly, increase profitability at Veterinary Laboratories. Management is confident that a significant market exists for these new products and is committed to maintaining the subsidiary's current cost structure to allocate the maximum amount of these future revenues directly to the bottom line.

Overall, long-term debt obligations were reduced by more than $442,000, in the last fiscal year, including full repayment of the mortgage at the Dextran Products plant in Toronto. $510,000 was expended on equipment upgrades at both the Dextran Products plant in Toronto, Canada and the Veterinary Laboratories plant in Lenexa, Kansas.

Polydex Pharmaceuticals Limited, 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 its 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