Anika Therapeutics, Inc. PondelWilkinson Charles H. Sherwood, Ph.D. Susan Klein (508) 358-4315 Chief Executive Officer Rob Whetstone (310) 279-5963 (781) 932-6616 x205 ANIKA THERAPEUTICS REPORTS 19

ANIKA THERAPEUTICS REPORTS 19% INCREASE

FIRST QUARTER REVENUE

WOBURN, Mass. April 27, 2005 Anika Therapeutics, Inc. (NASDAQ:ANIK)

today reported financial results for the first quarter ended March 31, 2005.

revenue for the first quarter of fiscal 2005 increased 19% to $7,291,000 from

$6,141,000 for the comparable period last year.

Product revenue for the first quarter increased 2% to $5,677,000

compared with $5,569,000 for the same period last year. Revenue from OrthoVisc , Anika s osteoarthritis product,

increased 6% on a quarter-over-quarter basis, amounting to $2,401,000, or 42%

of the company s product sales.

Ophthalmic product sales for the most recent quarter increased 17% over the

prior year s quarter to $2,769,000, accounting for 49% of total product

sales. Hyvisc sales were

down 45% compared with the first quarter of 2004 and represented 9% of product

sales for the period.

the first quarter, Anika reported net income of $1,202,000, or $.10 per diluted

share, compared with net income of $7,786,000, or $.69 per diluted share, for

the first quarter of 2004, which included a one-time deferred income tax

benefit of $7,039,000, equal to $.62 per diluted share.

H. Sherwood, Ph.D., Anika s president and chief executive officer, said he was

encouraged by OrthoVisc sales, particularly in Turkey and Canada, and noted

that sales for the prior-year period included initial stocking order shipments to

support the U.S. OrthoVisc launch in March 2004. We are extremely pleased with international

to report increased revenues of ophthalmic products to Bausch & Lomb during

the first three quarters of the year due to our new contract which eliminates

deferred revenue provisions under the prior agreement, Sherwood said. Sales of Hyvisc , Anika s

were off for the first quarter due to the timing of orders, he added.

gross margin for the first quarter was down to 47.3% from 51.1% for the prior

year s quarter primarily due to manufacturing activities implemented to meet

unanticipated strong demand internationally for OrthoVisc product. Sherwood said he expects the company to

resume margin growth in ensuing quarters, assuming no other unanticipated

and development expenses for the first quarter increased 32% to $1,199,000

compared with first-quarter 2004 expenses of $907,000. The increase was primarily due to costs associated

with the ongoing clinical trial for the company s cosmetic tissue augmentation

(CTA) therapy. These costs were offset

by reimbursement from the Ortho Neutrogena Division of Ortho-McNeil

Pharmaceutical, Inc.,

Anika s commercial development partner for CTA, and were recorded as contract

revenue in the amount of $918,000.

general and administrative (SG&A) expenses for the first quarter were $1,292,000,

essentially flat with SG&A costs for the first quarter of 2004.

cash equivalents and marketable securities at March 31, 2005 totaled

$40,337,000 compared with cash and cash equivalents of $39,339,000 at December

31, 2004. The company continues to have

Conference Call Information

company will hold a conference call to review its financial results on

Thursday, April 28, 2005 at 10:00 a.m. EDT.

To listen to the conference call, dial 706-634-1550 approximately 10

minutes before the starting time and reference Anika Therapeutics. In addition, the conference call will be

available to interested parties through a live audio Internet broadcast at http://www.anikatherapeutics.com/newset.htm. The call will be archived and accessible on

the same Web site for one year shortly after the completion of the call.

About Anika Therapeutics, Inc.

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 , a treatment for osteoarthritis of the knee available

internationally and marketed in the U.S. by Ortho Biotech Products, L.P., and

Hyvisc , a treatment for equine osteoarthritis marketed in the U.S.

by Boehringer Ingelheim Vetmedica, Inc.

Anika manufactures Amvisc and Amvisc Plus , HA

viscoelastic products for ophthalmic surgery.

It also produces CoEase , which is marketed by Advanced

Medical Optics, Inc., STAARVISC -II distributed by STAAR Surgical

Company and Shellgel 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: (i) the Company s efforts and expectations in entering into

long-term arrangements to market and distribute ophthalmic and osteoarthritis

products, (ii) the level of the Company s revenue or sales in particular

geographic areas and/or for particular products, (iii) the market share of any

of the Company s products, (iv) expectations regarding future results of

operations, including the Company s expectations regarding cash utilization and

margin growth, (v) the Company s intention to strengthen, expand and grow its

ophthalmic franchise and the growth of the Company s ophthalmic business, (vi)

the Company s expectations of the size of the United States and European

markets, for osteoarthritis of the knee, (vii) the Company s objectives towards

increasing market share for ORTHOVISC in international and domestic

markets or otherwise penetrate growing markets for osteoarthritis of the knee,

(viii) the Company s corporate objectives and research and development and

collaboration opportunities, including, without limitation, intended

preclinical development of potential cosmetic tissue augmentation products and

commencement of INCERT clinical trials, and (ix) the Company s

plans for augmenting its infrastructure.

These statements are based upon the current beliefs and expectations of

the Company s management and are subject to significant risks, uncertainties

and other factors. 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: (i) the Company s ability to