October 3, 2006

Polydex Pharmaceuticals Awarded Frost & Sullivan’s 2006 North America Product Innovation of the Year Award

Award to be Presented to George Usher at Excellence In Pharmaceuticals and Life Sciences Awards Banquet Recognizing Best Practices in the Development of Ushercell

Toronto, Ontario, October 3, 2006 - Polydex Pharmaceuticals Limited (NASDAQ:POLXF) is proud to accept this year’s Product Innovation of the Year Award from Frost & Sullivan for best practices in the development of Ushercell, the company’s revolutionary next-generation contraceptive prophylactic gel, envisioned to prevent the spread of sexually transmitted infections, including the AIDS causing HIV virus.

George Usher, President and CEO of Polydex, was delighted to receive Frost & Sullivan’s invitation to accept the Award at a Presentation Banquet in La Jolla California later this month.  “We’re really very pleased that over the last decade Ushercell has continued to demonstrate that it is safe and acceptable to men and women, propelling this important research into Phase III HIV-prevention studies, and for potential uses against a wide variety of bacteria and viruses. Frost & Sullivan’s recognition of Ushercell as an innovative gel microbicide product that may potentially provide superior protection against HIV, the virus responsible for AIDS, and other sexually transmitted diseases (STDs), is prestigious and a true mark of distinction in the history of Ushercell’s development.”

With unparalleled support from the research team at CONRAD, Ushercell has been shown in a Phase II clinical study to be an effective contraceptive and in preclinical studies to prevent transmission of gonorrhea, chlamydia, herpes 1 and 2, and human papilloma virus HPV (the most prevalent sexually transmitted infection in the world and linked to the onset of cervical cancer).

Dr. Henry Gabelnick, Executive Director of CONRAD congratulated Polydex on receiving this Award and said, “We’re happy to see Polydex recognized with this Award.  Ushercell’s potential as a contraceptive and microbicide is very promising. CONRAD will continue to provide full support to complete our evidence based research with the intention of getting this product to market”.

Frost & Sullivan’s Award for Product Innovation of the Year recognizes Polydex Pharmaceuticals for achieving world-class performance in microbicide development, a tribute to excellence in the product development of Ushercell, an innovative microbicide that could help combat the spread of AIDS and other STD’s, especially in women.

Nivedithaa Gopaalakrishnan, research analyst at Frost & Sullivan performed extensive research into microbicide development and concluded, “Ushercell is notable in that it does not lead to any inflammation like many other vaginal products do. Some microbicides based on cytotoxicity have been known to cause problems such as thinning of the vaginal walls that could exert a negative effect on the normal vaginal microbial flora. This could further increase the chances of contracting STDs”.

Frost & Sullivan, a global growth consulting company for more than 40 years, provides comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.

CONRAD is a cooperating agency of USAID committed to improving reproductive health by expanding the contraceptive choices of women and men and by helping to prevent the transmission of HIV/AIDS and other sexually transmitted diseases.  CONRAD is administered through the Department of Obstetrics and Gynecology at Eastern Virginia Medical School (EVMS) in Norfolk, VA. These trials receive significant support from USAID and the Bill and Melinda Gates Foundation.

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 United States 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:

Contact for CONRAD: Annette Larkin, 202-429-4929, AnnetteLarkin@rationalpr.com

Investor Relations for Polydex Pharmaceuticals Limited:  Linda Hughes, 1-877-945-1621, Linda@northarm.com