Thursday, September 26, 2002

Wilmington, North Carolina – The University of North Carolina at Wilmington (UNCW) today announced that it has signed its first-ever technology-transfer licensing agreement with aaiPharma Inc (Nasdaq: AAII). This agreement is expected to facilitate the transfer of scientific discoveries by university researchers into future useful medicines.

Although actual products resulting from this collaboration are not expected to hit the market in the near term, research at the University on new bio-chemical entities is well underway. UNCW’s Center for Marine Science and the Departments of Biology and Chemistry are currently conducting research dealing with the identification of molecules that may be used to develop potentially life saving medicines from pharmaceutically active entities found in our coastal waters. Once a new chemical entity (NCE) is identified as having pharmacological activity, it will be offered to aaiPharma. If deemed to be commercially viable, aaiPharma will apply its more than 22 years of drug research and development experience to move the compound through the drug development and approval process. If approved by the U.S. Food and Drug Administration (FDA), aaiPharma will assume full responsibility for the sales and marketing of the medicine, or license it to a third party.

“This is an exciting relationship and a unique opportunity for two local, leading institutions to combine their respective expertise on making a positive difference in medical research,” said George Van Lear, Ph.D., president of aaiPharma’s research division. “The students and university scientists will gain valuable hands on experience working side by side with industry leaders, the University will have the opportunity to realize the value of its research program, and aaiPharma will gain access to a generally untapped resource for drug development.”

“UNCW’s agreement with aaiPharma is a milestone for this university and another indicator of the increasingly sophisticated and significant science being done by our faculty and students,” said Dr. Daniel Baden, director of the UNCW Center for Marine Science. “This is a promising arrangement because UNCW is doing the creative discovery research, which we do well. Then, when compounds are discovered that have potential commercial value, aaiPharma will come in and do what they do best, the product development, patenting, and marketing of pharmaceutical products. We believe this has positive economic potential down the road.”

Technology transfer is becoming increasingly important in North Carolina as universities patent discoveries, license inventions, and create spin-off companies. It also provides tangible evidence and benefits of research dollars at work. The UNCW/aaiPharma agreement is a landmark first step in what should prove to be a mutually beneficial arrangement.

About UNCW

Located between the Cape Fear River and the Atlantic Ocean, the University of North Carolina at Wilmington is committed to becoming the best undergraduate teaching university in the South. An internationally recognized undergraduate marine biology program, coupled with a modern facility for its Center for Marine Science and a new Ph.D. program in marine biology, has put UNCW at the forefront of research to learn how the world's oceans affect human health and quality of life. In addition, the university has a critically acclaimed Creative Writing Department that attracts Pulitzer Prize-winning visiting writers and a growing Film Studies major that works closely with Wilmington-based EUE Screen Gems Studios and other productions filmed locally, such as Dawson's Creek which often uses the university's campus as a filming location. For more information, go to www.uncw.edu.

About aaiPharma

aaiPharma Inc. is a science-based specialty pharmaceutical company with more than 22 years of drug development experience. Focusing on targeted therapeutic areas, the Company markets a growing portfolio of established branded products and applies innovative technologies to increase the commercial potential of these products. At the same time, aaiPharma's research and development organization is developing an impressive pipeline of products to position the Company for near-term and long-term growth in its targeted therapeutic areas. In addition to developing and marketing its own line of proprietary pharmaceutical products, aaiPharma continues to be a world leader in providing contract pharmaceutical development services through its AAI International division. For more information on the Company, please visit the website at www.aaipharma.com.

Forward-Looking Statements

Information in this press release contains certain ``forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934, including the statements by Dr. Van Lear and statements concerning possible future NCE and drug opportunities from the foregoing research and development activities and their potential commercial viability and value. The “forward-looking statements” herein involve risks and uncertainties that could cause actual results to differ materially, including, without limitation, risks and uncertainties pertaining to UNCW’s ability to identify commercially valuable and pharmaceutically active drug candidates and aaiPharma’s ability to successfully develop, obtain timely regulatory approval for, and sell, on a commercially profitable basis, pharmaceutical products obtained from such research and development activities. Additional factors that may cause the actual results to differ materially are discussed in aaiPharma’s recent filings with the Securities and Exchange Commission, including, but not limited to, its registration statement, as amended, its Annual Report on Form 10-K filed with the SEC on March 11, 2002, including the exhibits attached or incorporated therein, its Form 10-Q filed with the SEC on August 14, 2002, including the exhibits thereof, its Form 8-Ks and its other periodic filings.