Flamel Technologies Announces Second Quarter 2013 Results Bloxiverz Product Launch Underway Second NDA from Éclat Portfolio Resubmitted to FDA Lyon, France

Technologies Announces Second Quarter 2013 Results

Lyon, France - July 29, 2013

- Flamel Technologies (NASDAQ: FLML) today announced its financial results for the second quarter of 2013. Highlights from the

quarter and subsequent period include:

"We are excited to receive NDA approval

for Bloxiverz from the FDA on the specified PDUFA action date. We think that speaks to the quality of our team's regulatory

skills, and we are applying those skills to our other pipeline products," said Mike Anderson, Chief Executive Officer of

Flamel. "Moreover, the marketing organization is intently focused on the product launch for Bloxiverz and working with

clinical staff, hospital risk managers and GPOs to make them aware of availability of an FDA-approved version of neostigmine sulfate

for the first time. We are currently taking orders and putting product into the wholesaler channel, which provides distribution

services to the hospital community."

"Our team continues to be pleased

with our progress in developing products from the acquired clat portfolio," added Mr. Anderson. "We resubmitted

our second new drug application in the second quarter and look forward to the FDA notification if that NDA will be accepted for

filing, which will give us a specific PDUFA action date. We will continue to push forward on additional NDA filings out of the

clat portfolio and on developing additional, innovative drugs that employ Flamel's proprietary platform of technologies."

Greater research and development spending

on these new product efforts is designed to build Flamel's near-term and mid-term pipeline and potential revenues. The Company

expects to perform clinical trials on several products from its internal pipeline in the second half of 2013.

Flamel's Second Quarter Results

Flamel reported total revenues during the

second quarter of 2013 of $5.5 million, which were 8% lower than revenues of $6.0 million in the second quarter of 2012, primarily

due to a decrease in license and research revenue.

Costs of goods and services sold for the second quarter of 2013

were $1.3 million compared to $1.5 million in the second quarter of 2012 primarily due to reduced production costs.

Research and development costs in the second quarter of 2013 totaled $7.3 million versus $7.7 million in the prior year

period primarily due to the timing of our pre-clinical and clinical studies. Selling, general and administrative expenses for the

second quarter of 2013 decreased to $2.7 million compared to $2.9 million in the prior year period primarily due to reduced non-cash

stock compensation expenses.

Total costs and expenses in the second quarter of 2013, excluding

the remeasurement of acquisition liabilities, decreased by 7.3% to $11.3 million compared to $12.2 million in the second quarter

In the acquisition of clat, Flamel acquired several

pipeline products that management believed could be commercially attractive. As part of the acquisition, Flamel has incurred obligations

owed to the former clat shareholders that are contingent on the approval and market potential for those products. Because

the outlook for the potential value of the clat pipeline products owned by Flamel has improved, including the FDA approval

of Bloxiverz , Flamel expects to owe more to the former clat shareholders than was estimated previously.

The specific terms of the acquisition of clat in March

2012 included the issuance of a $12 million note, whose repayment is tied to the approval and net sales of certain clat

products, 3.3 million warrants, and earn-out payments equal to 20% of the gross profit earned on certain clat products

that are FDA-approved and launched. In addition, the Company's February 2013 financing of $15 million included a royalty

of 1.75% of net sales of certain clat products that may be approved and launched. These commitments are revalued and reassessed

at each balance sheet date based on information and data available at that time resulting in a non-cash expense of $28.6 million

in operating expenses and $2.0 million in financing expenses in the second quarter of 2013 compared to a modest non-cash expense

of $0.2 million in the second quarter of 2012. This quarterly re-measurement increased the Company's total costs and expenses

by $28.4 million over the prior year period. This change in the remeasurement of acquisition liabilities was the largest source

of change in the Company's total costs and expenses, on a GAAP basis, which were $39.9 for the second quarter of 2013 compared

to $12.3 million in the prior year period.

Total interest expense of $0.6 million

for the second quarter of 2013 includes interest on the additional debt financing completed during the first quarter of 2013. In

the second quarter of 2012, the Company had interest income of $0.3 million. Other income of $0.5 million in the second quarter

of 2013 reflects the reimbursement of the deductible from a 2007 class action against the Company that was dismissed.

Net loss and loss per share (basic and

diluted) for the second quarter of 2013, excluding the impact of the remeasurement of the fair value of acquisition liabilities

and royalty, were $2.2 million and $0.09, respectively, compared with $5.7 million and $0.23, respectively, in the prior year period.

On a GAAP basis, net loss for the second quarter of 2013 was $32.9 million versus a net loss of $5.9 in the prior year period.

Loss per share (both basic and diluted) was $1.29 in the second quarter of 2013 versus $0.24 in the second quarter of 2012.

The Company ended the second quarter with

cash and marketable securities of $9.7 million compared to $15.4 million at March 31, 2013, reflecting a decrease of $5.6 million.

During the second quarter of each year, Flamel typically receives an annual payment from the French Government in recognition of

the research and development conducted by Flamel in France, effectively a research and development tax credit. This year the research

and development credit of $6.7 million was delayed to July 3, 2013. Had the payment been received in June, Flamel would have ended

the second quarter with a cash balance of $16.4 million.

A conference call to discuss these results

and other updates is scheduled for 8:30 AM Eastern Time on Monday, July 29, 2013. A question and answer period will follow

management's prepared remarks. To participate in the conference call, investors are invited to dial 888-401-4669 (U.S. and

Canada) or 719-457-2648 (international). The conference ID number is

3698213. The conference call webcast may be accessed at www.flamel.com. A replay of the call will be available for 14 days, within

a few hours after the call ends. Investors may listen to the replay of the call by dialing 888-203-1112 (U.S. and Canada) or 719-457-0820

(international), with the passcode 3698213. A replay of the webcast will also be archived on Flamel's website for 90 days following

About Flamel Technologies. Flamel

Technologies SA's (NASDAQ: FLML) business model is to blend high-value internally developed products with its leading drug delivery

capabilities. The Company has a proprietary pipeline of niche specialty pharmaceutical products, while its drug delivery platforms

are focused on the goal of developing safer, more efficacious formulations of drugs to address unmet medical needs. Its partnered

pipeline includes biological and chemical drugs formulated with its Medusa and Micropump (and its applications to the

development of liquid formulations, i.e. LiquiTime and of abuse-deterrent formulations Trigger Lock ) proprietary drug

delivery platforms. Several Medusa-based products have been successfully tested in clinical trials. The Company has developed products

and manufactures Micropump-based microparticles under FDA-audited GMP guidelines. Flamel Technologies has collaborations with a

number of leading pharmaceutical and biotechnology companies, including GlaxoSmithKline (Coreg CR , carvedilol phosphate).

The Company is headquartered in Lyon, France and has operations in St. Louis, Missouri, USA, and manufacturing facilities in Pessac,

France. Additional information may be found at http://www.flamel.com.

contains "forward-looking statements", including certain plans, expectations, goals and projections regarding financial

results, product developments and technology platforms. All statements that are not clearly historical in nature are forward-looking,

and the words "anticipate," "assume," "believe," "expect," "estimate," "plan,"

"will," "may," and similar expressions are generally intended to identify forward-looking statements. All

forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control that could cause

actual results to differ materially from those contemplated in such forward-looking statements. These risks include risks that

the integration of clat Pharmaceuticals may not be successful or that certain payment acceleration events related to the

acquisition may be triggered; the new hospital-based product under FDA

review may not be approved or such approval may be delayed; the reacquisition of the exclusive rights to develop and commercialize

IFN- XL worldwide and identification of an alternative strategic partner for the program may not be successful; the identified

opportunities will not result in shorter-term, high value results; clinical trial results may not be positive or our partners may

decide not to move forward; management transition may be disruptive or not succeed as planned; products in the development stage

may not achieve scientific objectives or milestones or meet stringent regulatory requirements; products in development may not

achieve market acceptance; competitive products and pricing may hinder our commercial opportunities; we may not be successful in

identifying and pursuing opportunities to develop our own product portfolio using Flamel's technology; and the risks associated

with our reliance on outside parties and key strategic alliances. These and other risks are described more fully in Flamel's Annual

Report on Form 20-F for the year ended December 31, 2012 that has been filed with the Securities and Exchange Commission (SEC).

All forward-looking statements included in this release are based on information available at the time of the release. We disclaim

any obligation to update or alter our forward-looking statements as a result of new information, future events or otherwise, except