FOR IMMEDIATE RELEASE                 Contact:         Peter A. Schmitt
                                                       Vice President and
                                                       Chief Financial Officer
                                                       (770) 582-6363


               ISOLYSER AMENDS SHAREHOLDER PROTECTION RIGHTS PLAN




         NORCROSS,   Georgia,   October  14,  1997  --  Isolyser  Company,  Inc.
(Nasdaq/NM:OREX) announced that it had amended (the "Amendment") its Shareholder
Protection Rights Agreement (the "Plan") to better assure that the objectives of
the Plan to protect and potentially enhance share value are realized.

         In 1996, the Company adopted the Plan after  determining  that the Plan
was in the best  interests  of the  Company's  shareholders  by helping to deter
possible  discriminatory  and abusive  takeover  tactics,  assuring the fair and
equal  treatment of all  shareholders  and  providing  greater  flexibility  and
authority  for the Board of Directors to negotiate  and seek to achieve the best
results  for the Company and its  shareholders  in the event of any  unsolicited
proposals  to acquire or  restructure  the  Company.  The  Company  adopted  the
Amendment  after  considering   recent   developments   under  Georgia  law  and
determining  that the Amendment was in the best interests of the Company and its
shareholders  by assuring  that the  purposes  of the Plan are not  circumvented
through a proxy contest.

         The Amendment  generally  provides that the Plan may not be modified to
facilitate a business combination with a potential acquiring person for one year
(or  potentially  longer  in the  event of  certain  self-dealing  transactions)
following a  replacement  of a majority  of the  directors  of the Company  with
non-incumbent  directors where such  replacement  directors were elected for the
purpose of either  facilitating  a  takeover  of the  Company by such  acquiring
person or directly or indirectly  avoiding the purposes of the Plan. Neither the
Plan nor the Amendment prevents a change of control of the Company where that is
in the best  interests  of the  Company's  shareholders.  While the Company as a
matter of policy  does not  normally  comment  on the  existence  or  absence of
takeover  proposals,  the Plan was adopted  only for  precautionary  purposes to
protect the rights of  shareholders  and not in  response to any known  takeover
proposal.



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         Isolyser,  based in Norcross,  Georgia,  has developed and manufactures
OREX(R)  Degradables(TM),  a series of  ecologically  safe  products made from a
thermoplastic, hot water soluble polymer that can be configured into an array of
products such as woven and non-woven fabrics, film and thermoformed and extruded
items.  These  products can be  dissolved  after use in hot water in a specially
designed OREX(R)  processor  similar to a commercial  washing machine,  for safe
disposal through municipal sewer systems. The Company believes that its products
provide protection to people and the environment while providing  cost-effective
solutions to the problems  associated  with waste  reduction and  disposal.  The
Company also  manufactures  and markets  custom  procedure  trays and  infection
control  products.  The Company's  infection  control  products include personal
protective  equipment,  specialty patient drapes,  equipment covers,  and liquid
waste treatment systems.

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