Anika Therapeutics, Inc. PondelWilkinson Klein Charles Sherwood, Ph.D., CEO Susan Klein (508) 358-4315 (781) 932-6616 Rob Whetstone (310) 279-5963 ANIKA THERAPEUTICS SIGNS MULTI-YEAR SUPPLIER AGREE

ANIKA THERAPEUTICS SIGNS MULTI-YEAR SUPPLIER AGREEMENT

OrthoVisc US marketing agreement milestone payment received

Mass. December 20, 2004 Anika Therapeutics, Inc. (NASDAQ:ANIK) today

announced it has signed a multi-year supply agreement with the global eye

health company Bausch & Lomb Incorporated (NYSE:BOL), for viscoelastic

products used in ophthalmic surgery.

Viscoelastic products, composed of hyaluronic acid,

protect delicate eye tissue and maintain eye structure during cataract and

certain refractive surgeries.

We are pleased to announce this multi-year

agreement that extends our relationship as a major viscoelastic supplier to

Bausch & Lomb, a worldwide leader in eye health products, said Charles H.

Sherwood, Ph.D., Anika s president and chief executive officer.

We look forward to continuing our relationship with

Anika Therapeutics, which has been a supplier of viscoelastic products to

Bausch & Lomb and its predecessors for more than two decades, said Thomas

& Lomb director of Global Product Strategy for cataract products.

In other company business, Anika separately

announced that it has received a $5 million contractual milestone payment under

a previously disclosed U.S. licensing and distribution agreement with Ortho

Biotech Products, L.P. for OrthoVisc , a treatment for osteoarthritis

of the knee. The payment is tied to the incorporation of planned upgrades into Anika s

manufacturing operations. Commencing in

the fourth quarter of 2004, this cash payment will be recognized as revenue

ratably over the initial 10-year term of that agreement.

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. It also produces CoEase , which is

marketed by Advanced Medical Optics, Inc., STAARVISC -II distributed

by STAAR Surgical Company and Shellgel for Cytosol Ophthalmics,

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. These

statements also include statements regarding: (i) the Company s efforts and

expectations in entering into long-term arrangements to market and distribute

ophthalmic 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) the Company s intention to strengthen, expand

and grow its ophthalmic franchise and the growth of the Company s ophthalmic

business, and (v) the Company s corporate objectives and research and

development and collaboration opportunities. 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 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; (ii) the Company s research

and product development efforts and their relative success, including whether

the Company has any meaningful sales of any new products resulting from such

efforts; or (iii) future determinations by the Company to allocate resources to

products and in directions not presently contemplated. Any delay in receiving

any regulatory approvals may adversely affect the Company s competitive

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

meaningful sales of the products may not be achieved. There is also a risk that

(i) the Company s existing distributors or customers will not continue to place

orders at historical levels or that any of them will seek to modify or

terminate existing arrangements, (ii) the Company s efforts to enter into

long-term marketing and distribution arrangements will not be successful, (iii)

new supply arrangements, including the agreement with Bausch & Lomb

pertaining to viscoelastic products, will not result in meaningful sales of the

Company s products, (v) competitive products will adversely impact the Company s

product sales, (vi) the estimated size(s) of the markets to which the Company

has targeted its products will fail to be achieved, or (vii) increased sales of

the Company s products, including its ophthalmic products, will not continue or

sales will decrease or not reach historical sales

or even if such increases occur that such increases will improve gross margins,

any of which may have a material adverse effect on the Company s business and

operations. 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 Reports on Form 10-K for the year ended December 31, 2003, and its

Quarterly Report on Form 10-Q for the quarter ended September 30, 2004, and

Current Reports on Form 8-K, as well as those described in the Company s other

press releases and SEC filings.