InSite Vision is an ophthalmic company primarily focused on developing therapies that treat ocular infection and inflammation, glaucoma, and retinal diseases. InSite Vision's lead product is AzaSite^®, a topical anti-infective which targets infections of the eye, which was approved by the FDA in April 2007. AzaSite contains the drug azithromycin, a broad-spectrum antibiotic formulated with DuraSite^®, InSite Vision's patented drug-delivery vehicle, which offers the benefit of a low-dosing regimen, attractive to both the eye-care patient and physician.

InSite Vision expects AzaSite to be commercially launched in the United States in the late third quarter of 2007. Inspire Pharmaceuticals (NASDAQ:ISPH) has the responsibility to commercialize AzaSite in the U.S. and Canada in accordance with the parties' license agreement. InSite Vision plans to pursue additional commercial partnerships to address AzaSite market opportunities outside the U.S. and Canada.

The Company will continue to build on its azithromycin/DuraSite technology platform by developing AzaSite Plus as its follow-on product to AzaSite. AzaSite Plus is an antibiotic and corticosteroid combination product, where the antibiotic inhibits ocular bacterial proliferation, while the corticosteroid allows suppression of the inflammatory response.