LecTec Corporation Begins a Comprehensive R&D Program

TEXARKANA, Texas--(BUSINESS WIRE)--

LecTec Corporation LECT announced today that it has begun a comprehensive R&D program to develop its proprietary hand sanitizer patch technology. As part of this comprehensive R&D program, the Company is currently identifying antimicrobial technologies and will start laboratory testing of selected antimicrobial technologies this month.

To support its R&D program, LecTec has established relationships with bio-medical companies based in China, Japan, Thailand, and the United States to assist the Company in developing its antimicrobial materials. In addition, LecTec has selected a leading U.S. based laboratory to conduct the testing of its hand sanitizer patch product, as well as a leading regulatory consulting firm that specializes in antimicrobial product approvals to provide additional support.

LecTec also has engaged an India-based firm to explore R&D opportunities in India and to analyze the Company’s existing and emerging IP portfolio.

Dr. Daniel Sigg, Chief Scientific Officer of LecTec stated that "To date, we have identified an interesting array of potential antimicrobial technologies, and companies in support of our antimicrobial patch product concept. Many of the technologies and companies are based in Asia, but we will test and compare these technologies in our U.S.-based testing laboratory for their antimicrobial efficacy, and are looking forward to the results over the next few weeks and months. While the interest of numerous companies in our product concept is encouraging, we need to realize that we are still early in the process, and that significant scientific, clinical, and regulatory risks on commercializing such a product remain."

In addition to consumer hand sanitizer patches for children and adults, LecTec is exploring the development of a professional hand sanitizer patch specifically for the restaurant industry. Judd Berlin, CEO of LecTec said, "We are consulting with major fast food restaurant chains in designing a hand sanitizer patch for use by kitchen crew. The restaurant industry is large and relentless about hand sanitation. The restaurant industry employs about 13 million people in America and on a typical day in America more than 130 million individuals are restaurant patrons.”

"Our investment in R&D will provide clarity on the feasibility of our hand sanitizer patch concept," said Mr. Berlin. "LecTec has only recently been financially able to fully operate as an R&D company and so results of our first R&D venture will be a determining factor in developing our M&A and management succession plans."

As announced earlier, shareholders of record on January 29, 2010 will be paid a dividend of $1.00 per share on February 12, 2010. For more information please visit LecTec's website www.lectec.com which was launched with a new design today.

About LecTec Corporation

LecTec Corporation is an intellectual property licensing and R&D company holding patents and trademarks based on its hydrogel patch technology. The Company’s primary focus is to derive royalty and other income from patents that the Company owns based on its advanced skin interface technologies. The Company was an innovator in hydrogel–based topical delivery of therapeutic over–the–counter medications, which provide alternatives to topical creams and ointments. A hydrogel is a gel–like material having an affinity for water and similar compounds. These gels are ideal for delivering medication onto the skin. The Company holds multiple domestic and international patents on its hydrogel technology.

Cautionary Statements

This press release contains forward–looking statements concerning possible or anticipated future results of operations or business developments which are typically preceded by the words “believes,” “wants,” “expects,” “anticipates,” “intends,” “will,” “may,” “should,” or similar expressions. Such forward-looking statements are subject to risks and uncertainties, which could cause results or developments to differ materially from those, indicated in the forward–looking statements. Such risks and uncertainties include, but are not limited to, the Company’s dependence on royalty payments from Novartis Consumer Health, Inc., which is selling an adult vapor patch licensed by the Company, the Company’s dependence on key personnel and Board of Director members, the Company’s pending patent infringement litigation against Chattem, Inc. CHTT and Prince of Peace Enterprises, Inc., the issuance of new accounting pronouncements, information disseminated on internet message boards from posters expressing opinions that may or may not be factual, the availability of opportunities for licensing agreements related to patents that the Company holds, limitations on market expansion opportunities, the inclusion of a “going-concern” qualification in the Company’s Form 10-K for the year ended December 31, 2008 from the Company’s independent registered public accounting firm, and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission, and particularly as described in the “Risk Factors” included in our Form 10–K for the year ended December 31, 2008.