Under the terms of this relationship, HnG Medical will represent andnegotiate medical coating services and royalty/fee based license agreementsin China.

"I am delighted with our new relationship which will provide Hydromer withaccess to one of the fastest growing economies in the world," commentedMartin von Dyck, Executive Vice President of Hydromer, Inc., adding, "Whatis of significant importance is that HnG Medical will aid Hydromer in thepreparation of medical coating agreements to be enforceable under Chineselaw and providing protection for Hydromer's intellectual property."

In addition to the Urinary catheter and Central Venous Catheter andCardiovascular Stent businesses, HnG Medical will focus on the applicationof Hydromer's proprietary Hydromer® hydrophilic coatings on variousPebax®, Polyamide and Polyurethane cardiovascular, neurovascular andsimilar microcatheters catheters.

HnG Medical Incorporated is headquartered in Ontario, Canada with officesin the Ningbo Free Trade Zone, China. The company supplies manufacturingequipments and raw materials to Chinese medical device manufacturers.Backed by profound knowledge, rich experience in disposable medicaldevices, HnG is offering consultation services and supplying manufactureequipments to manufacturers. HnG provides most advanced and top qualitymanufacture equipments and materials. Please visit our web site athttp://www.hngmedical.com.

Pebax ® is a registered trademark of Arkema.

For additional information please contact: Martin von Dyck, 908-722-5000,Executive Vice President.

Hydromer, Inc. is a technology-based company involved in the research anddevelopment, manufacture and commercialization of specialized polymer andhydrogel products for medical device, pharmaceutical, animal health,cosmetic, personal care, and industrial uses. For the latest informationabout Hydromer, Inc. and its products, please visit our web site athttp://www.hydromer.com.

Contact:Martin von DyckExecutive Vice President(908) 722-5000