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                                                                    EXHIBIT 99.2



FOR IMMEDIATE RELEASE



               INSITE VISION FILES $40 MILLION SHELF REGISTRATION



ALAMEDA, CALIF. (FEBRUARY 2, 2001) - InSite Vision, Inc. (AMEX: ISV) - an
ophthalmics therapeutics, diagnostics and drug-delivery company - today
announced the filing of a Form S-3 shelf registration statement with the
Securities and Exchange Commission for up to $40 million of it's common stock.
The common stock is being registered for sale by InSite Vision and represents
new financing for the company. Ladenburg Thalmann & Co., Inc. will act as the
exclusive placement agent for this offering.

InSite Vision is an ophthalmic products company focused on glaucoma, ocular
infections and retinal diseases. The Company's glaucoma activities include
genomic research, using TIGR and other genes, for its diagnosis, prognosis and
disease management test ISV-900, as well as ISV-205, the Company's novel
therapeutic. ISV-205, being developed in collaboration with Pharmacia
Corporation, uses the Company's proprietary DuraSite(R) drug delivery
technology, which also is incorporated into InSite Vision's oculaR infection
programs.

The registration statement relating to these securities has been filed with the
Securities and Exchange Commission but has not yet become effective. These
securities may not be sold nor may offers to buy be accepted prior to the time
the registration statement becomes effective. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy, nor shall
there be any sale of these securities in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state.

A copy of the prospectus relating to this offering, when available, may be
obtained from Ladenburg Thalmann & Co., Inc., 590 Madison Avenue, New York, NY
10022 (212-409-2000).

This press release contains among other things certain statements of a
forward-looking nature relating to future events or the future business
performance of InSite Vision. Such statements entail a number of risks and
uncertainties involving the results of preclinical and clinical studies and
determinations by the U.S. Food & Drug Administration, as well as the risk
factors listed from time to time in the Company's SEC filings including, but not
limited to, its Form 10-Q for the quarter ended September 30, 2000.

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