EXHIBIT 99.1



SpectRx, Inc. (770) 242-8723                 FRB|Weber Shandwick (212) 445-8400


                                                                           
Bill Wells - Media                     Alison Ziegler      Julie Tu                 Judith Sylk-Siegel
Thomas H. Muller, Jr. - Financial      General Contact     Analyst Information      Media Contact


           SpectRx, Inc. Acquires Innovative Insulin Delivery Company

    ACQUISITION EXPANDS SPECTRX'S DIABETES PRODUCTS TO INCLUDE A PORTFOLIO OF
                     FDA-CLEARED INSULIN DELIVERY PRODUCTS

  INSULIN PUMP DISPOSABLES OF ACQUIRED COMPANY EXPECTED TO BE LAUNCHED IN 2002

         NORCROSS, GA and LOS ALTOS HILLS, CA (January 2, 2002) -- SpectRx, Inc.
(NASDAQ: SPRX) today announced it has acquired Sterling Medivations, Inc. of Los
Altos Hills, California, a privately-held developer of innovative insulin
delivery products for people with diabetes. The acquisition will expand
SpectRx's diabetes business by adding a portfolio of FDA-cleared insulin
delivery products, including consumables for the rapidly growing insulin pump
market. SpectRx is currently developing a continuous glucose monitor with Abbott
Laboratories (NYSE: ABT). SpectRx plans to launch the newly acquired line of
FDA-cleared insulin pump consumables in 2002, which the Company believes will
increase its revenue potential. Sterling also has several additional innovative
insulin delivery products currently in development or under FDA review.

         Sterling was acquired on December 31, 2001 by the merger of a
newly-formed, wholly-owned subsidiary of SpectRx with and into Sterling
Medivations, Inc. As a result of the merger, SpectRx issued approximately
620,000 shares of its common stock to former stockholders of Sterling
Medivations. SpectRx also agreed to assume the existing stock option plan of
Sterling Medivations, and if all assumed stock options were exercised, SpectRx
would be required to issue approximately an additional 23,000 shares of its
common stock to former holders of options to purchase Sterling Medivations
common stock. Up to approximately an additional 1.2 million shares of SpectRx's
common stock could be issued to former stockholders and option holders of
Sterling Medivations, if the products developed by Sterling meet specified
financial goals. The closing sales price for a share of SpectRx common stock on
December 31, 2001 was $x.xx, which, based on the shares of SpectRx common stock
issued on December 31, 2001, initially values the transaction at approximately
$xx million.

         "This acquisition will allow SpectRx to generate near-term revenue in
         the $200 million diabetes insulin pump disposables market, while
         development work continues with Abbott Laboratories on our continuous
         glucose monitoring product," said Mark A. Samuels, Chairman and CEO of
         SpectRx, Inc. "After Sterling's initial product introductions expected
         in 2002, its existing product pipeline could lead to new product
         introductions at regular





         intervals thereafter. Sterling is also a key strategic asset, in that
         it will help us achieve our ultimate goal of developing a closed-loop
         diabetes management solution that would combine our continuous glucose
         monitoring system with an insulin delivery system in one easy-to-use
         device."

         "We believe that SpectRx has the right combination of experienced
         management and expertise in the field of diabetes to become a leader in
         diabetes care," said Joel Douglas, Sterling Medivations Co-founder and
         Chief Technical Officer. Mr. Douglas was a co-founder of alternate site
         glucose test maker, Amira Medical, Inc.

         The Sterling Medivations acquisition will also help SpectRx establish
         distribution channels and additional partnerships in the diabetes
         marketplace. The new insulin delivery products are expected to be
         marketed through specialty diabetes supply channels, retail pharmacies
         and wholesalers as well as directly to consumers. Initial products and
         estimated launch dates are as follows:

         SIMPLE CHOICE(TM) SOFT - A soft catheter infusion set designed to fit
         all insulin pumps sold in the U.S. Currently, this product is expected
         to be launched in the third quarter of 2002.

         SIMPLE CHOICE(TM) QUICK - A low-profile soft catheter infusion set with
         special quick disconnect features, "no kink" tubing and a 360 (degree)-
         rotating hub designed to fit all insulin pumps sold in the U.S.
         Currently, this product is expected to be launched in the third
         quarter of 2002.

         SpectRx management will hold a conference call and webcast Wednesday
         January 2, 2002, at 11 a.m. eastern to discuss the acquisition. The
         webcast will be available at www.streetevents.com.

         SpectRx is a medical technology company providing innovative detection,
monitoring and treatment solutions for diabetes, cancer and other niche markets.
SpectRx is developing and will market a line of innovative insulin delivery
products for people with diabetes. This will complement SpectRx's consumer
device for continuous glucose monitoring being developed with partner Abbott
Laboratories (NYSE: ABT). SpectRx is also developing, along with partner Welch
Allyn, a product for the non-invasive detection of cervical cancer based on its
biophotonic technology. SpectRx also developed and currently markets the
BiliChek(TM), a non-invasive, painless monitor for infant jaundice. SpectRx was
developed around its leading-edge biophotonic detection and monitoring
technology, which uses light and spectral energies to develop painless
alternatives to blood-based and tissue-based procedures. For more information,
visit SpectRx's web sites at www.spectrx.com and www.bilicheck.com, or use
Internet keyword spectrx.


"Safe Harbor" Statement under the Private Securities Litigation Reform Act of
1995: A number of the matters and subject areas discussed in this press release
that are not historical or current facts deal with potential future
circumstances and developments. The discussion of such matters and subject areas
is qualified by the inherent risks and uncertainties surrounding future
expectations generally and also may materially differ from SpectRx's actual
future experience involving any of or more of such matters and subject areas.
SpectRx has attempted to identify, in



context, certain of the factors that they currently believe may cause actual
future experience and results to differ from SpectRx's current expectations
regarding the relevant matter or subject area. Such risks and uncertainties
include: unexpected difficulties in integrating the operations of Sterling
Medivations, the early stage of products in development, its dependence on
collaborative arrangements, its dependence on licensed intellectual property,
the uncertainty of market acceptance of its products, the intense competition in
the medical device industry, the uncertainty of capital to develop products, as
well as those that are more fully described from time to time in SpectRx's
reports under the heading "Risk Factors" filed with the SEC, including SpectRx's
Annual Report on Form 10-K for the fiscal year ended December 31, 2000 and in
the Forms 10-Q for the first, second and third quarters of 2001 filed by
SpectRx.

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