For Immediate Release:              Company Contact:
- ----------------------              ----------------
December 8, 2003                    Nancy C Broadbent
                                    Chief Financial Officer
                                    (215) 579-7388

                                    Investor Relations:
                                    -------------------
                                    Lisa M. Wilson
                                    In-Site Communications
                                    (212) 759-3929


               CollaGenex Pharmaceuticals Reports New Option Grant
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                          Under NASDAQ Market Rule 4350
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      NEWTOWN, PA, DECEMBER 8, 2003 - In accordance with NASDAQ Marketplace Rule
4350, as amended,  the Company granted  inducement  stock options  effective the
date of commencement of employment to Colin Stewart.  These options were granted
without    stockholder    approval   pursuant   to   NASDAQ   Marketplace   Rule
4350(i)(1)(A)(iv)   under  the  following  terms:  300,000  non-qualified  stock
options,  exercise  price  equal to the fair  market  value on the  grant  date,
ten-year  duration  and vesting at the rate of 20% for each year of service with
the Company.  In certain  circumstances,  if the closing  price of the Company's
common stock as quoted on the NASDAQ  National  Market exceeds a  pre-determined
share price for a certain number of consecutive  days, a portion of such options
will vest immediately.

      CollaGenex  Pharmaceuticals,  Inc. is a specialty  pharmaceutical  company
currently  focused on providing  innovative  medical therapies to the dental and
dermatology markets.  Currently,  the Company's  115-person  professional dental
pharmaceutical  sales  force  markets  Periostat(R),  which is  indicated  as an
adjunct to scaling and root planing for the  treatment  of adult  periodontitis.
Periostat(R) is the first and only  pharmaceutical to treat periodontal  disease
by  inhibiting  the enzymes that destroy  periodontal  support  tissues,  and by
enhancing bone protein synthesis.

      The sales force also promotes Vioxx(R), a Merck & Co. drug that CollaGenex
co-promotes  for the  treatment of acute dental pain;  Pandel,  a  prescription,
topical corticosteroid licensed from Altana, Inc.; Sirius Laboratories' AVAR(TM)





product line for the topical  control of acne  vulgaris,  rosacea and seborrheic
dermatitis;  and Atridox(R),  Atrisorb(R)  FreeFlow(TM) and Atrisorb-D FreeFlow,
Atrix Laboratories Inc.'s products for the treatment of adult periodontitis.

      Research has shown that certain  unique  properties  of the  tetracyclines
discovered  during the  development of  Periostat(R)  may be applicable to other
diseases  involving  inflammation  and/or  destruction of the body's  connective
tissues,  including acne,  rosacea,  meibomianitis and cancer metastasis,  among
others.  CollaGenex  is  further  evaluating  Periostat(R),  as  well as the new
IMPACS(R)  compounds,  to assess  whether  they are safe and  effective in these
applications.   In  addition,   CollaGenex  has  licensed  the   Restoraderm(TM)
technology,  a unique,  proprietary  dermal drug  delivery  system,  in order to
develop a range of topical  dermatological  products with enhanced pharmacologic
and cosmetic properties.

      To receive  additional  information  on the Company,  please visit our Web
site at www.collagenex.com, which does not form part of this press release.

      This press release contains forward-looking  statements within the meaning
of Section 21E of the Securities and Exchange Act of 1934, as amended. Investors
are cautioned that  forward-looking  statements involve risks and uncertainties,
which may affect the Company's business and prospects. The Company's business of
selling, marketing and developing pharmaceutical products is subject to a number
of significant  risks,  including  risks relating to the  implementation  of the
Company's sales and marketing plans for Periostat(R) and other products that the
Company markets,  the outcome and consequences of the patent litigation  against
Mutual and the outcome of  litigation  initiated  by Mutual,  risks that the FDA
will approve generic products, such as Mutual's products, that will compete with
and  limit  the  market  for  Periostat(R),   risks  inherent  in  research  and
development  activities,  risks associated with conducting  business in a highly
regulated  environment and  uncertainty  relating to clinical trials of products
under  development,  all as discussed in the Company's periodic filings with the
U.S. Securities and Exchange Commission.

Periostat(R),   IMPACS(R)  and  Metastat(R)  are  registered   trademarks,   and
Restoraderm(TM) is a trademark, of CollaGenex Pharmaceuticals, Inc.





All other trade  names,  trademarks  or service  marks are the property of their
respective owners and are not the property of CollaGenex  Pharmaceuticals,  Inc.
or any of our subsidiaries.

Pandel(R) is a trademark of Taisho Pharmaceuticals.

VIOXX(R) is a trademark of Merck & Co., Inc.

AVAR(TM) is a trademark of Sirius Laboratories, Inc.

Atridox(R) and  Atrisorb(R)  are registered  trademarks,  and  FreeFlow(TM) is a
trademark, of Atrix Laboratories, Inc.


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