Press Release TLC receives IND approval for Arthritis Drug TLC599 Taipei, Taiwan – April 28, 2015 –Taiwan Liposome Company Limited (TLC) (4152:TT) announced that its Investigational New Drug (IND) application has been approved by TFDA. today The Company is now ready to initiate the planned Phase I/II clinical trial with its arthritis drug TLC599. TLC599 is a New Formulation drug, entrapping corticosteroid with its proprietary sustained release platform “BioSeizer” as a local injection treatment for arthritis. The lipid formulation of TLC599 enables administration with smaller-sized 30 gauge needles as opposed to the thicker 21 gauge needles used for current crystallized formulation treatments, this will help ease the discomfort felt by patients during injection, as well as broadening the usage into areas that are too delicate for 21 gauge needles to reach. The multi-lamellar structure of BioSeizer platform also allows for fast onset with sustained release. Thus, patients can be relieved from of inflammatory pain promptly, while the sustained release of the corticosteroid will help to suppress inflammation over a prolonged period, reducing the administration frequency and discomfort between treatments. Since TLC599 is encapsulating corticosteroid, an existing API (Active Pharmaceutical Ingredient), the amount of safety tests required by the regulatory agency is far less than that of NCEs (New Chemical Entities). A Phase I/II trial totaling 40 subjects will be executed. GBI Research shows a global arthritis market totaling 20.6 billion in 2010, and is expected to grow at a CAGR of 7.2% over 2010 to 2018 to reach a market size of 38 billion by 2018. #### About TLC599 Arthritis is the most commonly seen chronic disease, affecting the musculoskeletal system, specifically the joints. The currently available corticosteroid arthritis treatments aim to prolong the efficacy, so are generally in crystallized formulation, but these crystallized formulations will in turn induce synovitis, causing more severe inflammation, and result in patient discomfort. Furthermore, since the crystallized formulation is greater in size, they need to be administered with 21 gauge needles; besides the pain caused during injection, it has a higher likelihood of causing infections. The lipid formulation of TLC599 has a much smaller particle size, enabling administrations to be done with 30 gauge needles, not only can it help to eliminate the abovementioned side effects, the applicable areas can also be broadened to smaller joints such as fingers. Arthritis patients suffer from a considerable amount of pain when inflammation occurs. Current treatments are mostly crystallized formulations that could take a days before they can take effect. In view of the discomfort patients have to suffer, TLC chose to encapsulate a water soluble corticosteroid dexamethasone sodium phosphate. This particular corticosteroid was mostly used to treat acute inflammation because of its fast onset nature. However since dexamethasone sodium phosphate lacks sustainability, it hasn’t been an ideal candidate for arthritis treatment. With the proprietary sustained release BioSeizer platform developed by TLC, TLC599 is capable of achieving both fast onset and sustained release. In addition, the current corticosteroid arthritis treatment will induce chondrotoxicity, death of cartilage making cells. Crystallized formulation of current treatments means terminal sterilization may not be enough and preservatives are needed in order to prolong its shelf life. Preservatives induce the death of chodocyte, which means both the API and the excipient of current treatments will exacerbate damage to the cartilage by treating them. TLC599 is a lipid formulation which can go through terminal sterilization and avoid the use of preservatives. Non-clinical data demonstrated no chondrotoxicity 3 months after the administration, meaning that with proper control and care, TLC599 can potentially delay or avoid the need for joint replacement. About TLC Taiwan Liposome Company is a biopharmaceutical company engaging in research, development and commercialization of proprietary drug delivery system for improving the treatment of cancer, ophthalmic conditions, and infectious diseases. TLC founded and led by renowned scientist, Dr. Keelung Hong, who has over 30 years of research and development experience in liposomes with over 100 publications. TLC also has a team of researchers, management, production experts, and advisors who are building the company into an organization recognized for its excellence in targeted delivery and rapid advancement of products. TLC currently operates from Headquarter in Taipei (Taiwan), and subsidiary offices in the US, the Netherlands, China. Hong Kong, and Australia. For more information, please visit www.tlcbio.com Contact for Taiwan Liposome Company: Paggy Liou Tel: +886 (2) 2655 7377 ext. 105 Email: paggy@tlcbio.com