September 15, 2004

POLYDEX PHARMACEUTICALS REPORTS SECOND QUARTER RESULTS

Toronto, Ontario, September 15, 2004 -- Polydex Pharmaceuticals Limited (NASDAQ:POLXF) (BSE:PXL) reports continued profitability, with a net income for the second quarter, ending July 31, 2004, of $12,759. The Company reported a net loss of $0.08 per share in the same period last year. Year to Date Earnings are $0.42 per share.

Management had predicted that with the sale of the Veterinary Laboratories facilities in Kansas earlier this year, the Company would have lower sales but had hoped for a return to profitability by focusing on the Company's core business of manufacturing raw materials which typically carry a higher profit margin. The second quarter is typically a period of lower sales as the summer months result in fewer sales of raw materials to the veterinary industry. The production facility is also shut down for a period in late July for regular maintenance.


POLYDEX PHARMACEUTICALS LIMITED AND SUBSIDIARIES
SECOND QUARTER RESULTS, FISCAL 2005
QUARTER ENDED: July 31, 2004
(Unaudited figures, stated in U.S. dollars)

Research and development of the Company's leading human pharmaceutical compound, Ushercell, continued during this period with ongoing Phase II trials to assess the efficacy of Ushercell as a Contraceptive. Ushercell is a high molecular weight cellulose sulphate gel, envisioned for topical vaginal use primarily in the prevention of transmission of AIDS and other sexually transmitted diseases, as well as unplanned pregnancies.

Plans for commencement of large-scale Phase III human clinical trials to assess the efficacy of Ushercell as a method of prevention of HIV are ongoing in collaboration with CONRAD and Family Health International. CONRAD has confirmed continued preparations for large-scale clinical trials, including success in receiving FDA approval of the HIV efficacy trial protocol to be commenced in Nigeria later this year.

Usherdex, the Company's Cystic Fibrosis product, remains under sub-license with BCY Lifesciences Inc., which recently reported ongoing research and development of Usherdex (now called DCF 987) and the recent approval of an animal study to further evaluate the efficacy of DCF 987 on Pseudomonas aeruginosa bacterial load, which is associated with recurrent lung infections in CF patients.

Polydex Pharmaceuticals Limited, based in Toronto, Ontario, Canada, is engaged in the research, development, manufacture and marketing of biotechnology-based products for the human pharmaceutical market, and also manufactures bulk pharmaceutical intermediates for the worldwide veterinary pharmaceutical industry.

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:

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