Anika Therapeutics Announces Termination of Worldwide Development and Commercialization Partnership with OrthoNeutrogena; Company Files Pre-Market Approval Application for Cosmetic Tissue Augmentation Product WOBURN, Mas

Anika Therapeutics Announces

Termination of Worldwide Development and Commercialization Partnership with OrthoNeutrogena; Company Files Pre-Market Approval

Application for Cosmetic Tissue Augmentation Product

WOBURN, Mass. (BUSINESS WIRE) Sept. 1, 2005 Anika

Therapeutics, Inc. (NASDAQ:ANIK) today announced

that it has reached a mutual agreement with OrthoNeutrogena,

a division of Ortho-McNeil Pharmaceuticals, for the termination of its

development and commercialization contract for Anika s

hyaluronic acid based cosmetic tissue augmentation (CTA) product, effective August 31, 2005.

In related news, Anika also announced that,

subsequent to such termination, it has filed a pre-market approval application

(PMA) with the U.S. Food and Drug Administration for

its CTA product and is currently exploring options

for its worldwide commercialization.

Headquartered in Woburn, Mass., Anika

Therapeutics, Inc. (www.anikatherapeutics.com)

develops, manufactures and commercializes therapeutic products and devices

intended to promote the repair, protection and healing of bone, cartilage and

soft tissue. These products are based on hyaluronic

acid (HA), a naturally occurring, biocompatible polymer found throughout the

body. Anika products include OrthoVisc(R),

a treatment for osteoarthritis of the knee available internationally and

marketed in the U.S. by DePuy Mitek

and Ortho Biotech Products, L.P., and Hyvisc(R), a

treatment for equine osteoarthritis marketed in the U.S. by Boehringer

Ingelheim Vetmedica, Inc.

Anika manufactures Amvisc(TM)

and Amvisc Plus(TM), HA viscoelastic

products for ophthalmic surgery. It also produces STAARVISC(TM)-II,

which is distributed by STAAR Surgical Company and Shellgel(TM) for Cytosol Ophthalmics, Inc.

The statements made in this press release which are not statements of

historical fact are forward-looking statements within the meaning of Section 27A

of the Securities Act of 1933 and Section 21E of the Securities Exchange

Act of 1934, including, without limitation, statements that may be identified

by words such as expectations, remains, focus, expected, prospective,

expanding, building, continue, progress, efforts, hope, believe, objectives,

opportunities, will, seek, and other expressions which are predictions of

or indicate future events and trends and which do not constitute historical

matters identify forward-looking statements. These statements also include

statements regarding the Company s goal of obtaining FDA approval for its CTA product, including the timing and likelihood of the

filing of a PMA application. The Company s actual

results could differ materially from any anticipated future results,

performance or achievements described in the forward-looking statements as a

result of a number of factors including the Company s ability to successfully

commence and/or complete clinical trials of its products on a timely basis or

at all, obtain clinical data to support a pre-market approval application

and/or FDA approval, and/or receive FDA or other

regulatory approvals of its products, or that such approvals will not be

obtained in a timely manner or without the need for additional clinical trials;

Even if regulatory approvals are obtained, there is a risk that meaningful

sales of the products may not be achieved. Certain other factors that might

cause the Company s actual results to differ materially from those in the

forward-looking statements include those set forth under the headings Business,

Risk Factors and Certain Factors Affecting Future Operating Results and Management s

Discussion and Analysis of Financial Condition and Results of Operations in

each of the Company s Annual Report on Form 10-K for the year ended December 31,

2004, its Quarterly Report on Form 10-Q for the quarter ended June 30,

2005, and Current Reports on Form 8-K, as well as those described in the

Company s other press releases and SEC filings.