NexMed, Inc (Nasdaq: NEXM) announced the preliminary results from a 400 patient "at home" study conducted in China. The multi-center study was randomized, double-blind, placebo-controlled, and designed to investigate the efficacy and safety of three strengths of the Femprox? cream in pre-menopausal and post-menopausal women diagnosed with female sexual arousal disorder ("FSAD"). Femprox is applied topically and incorporates alprostadil, a vasodilator, with the NexACT? permeation technology. The results were announced at the Annual Meeting of the American Urological Association (AUA), Tuesday, May 21-26, 2005, in San Antonio, TX.

The patients, who were between the ages of 21 and 65, were randomly assigned to placebo or one of three strengths of Femprox. They were required to use one application of Femprox prior to engaging in sexual activity, up to ten times during two treatment evaluation periods. The primary efficacy end point was the arousal success rate determined by the internationally recognized Female Sexual Encounter Profile (FSEP) questionnaire. Secondary efficacy end points included changes in the Female Sexual Function Index (FSFI), in other FSEP responses, and in the Female Sexual Distress Scale (FSDS), as well as the Global Assessment Question (GAQ).

The primary efficacy endpoint was statistically significant at the end of both evaluation periods. Patients showed demonstrable improvement in sexual arousal over the course of therapy. At the end of the first evaluation period, 17% and 38.7% (p<0.001) improvement in mean arousal success rate from baseline were reported for placebo and the highest dose of Femprox, respectively. At the end of the second evaluation period, 28.6% and 51.5% (p<0.001) improvement were reported for placebo and the highest dose of Femprox, respectively.

All of the secondary efficacy criteria showed a consistent trend in support of the primary efficacy results, including a demonstrated positive patient satisfaction by the GAQ. A total of 372 patients completed the study. The side effects reported were mostly mild or moderate in intensity, reversible and short in duration.

Dr. Joseph Mo, NexMed's C.E.O. commented, "NexMed has reached another major milestone in the Femprox development program. We have completed one of the first large scale take-home studies for a topical FSAD treatment." Dr. Mo further added, "We will complete the analysis of the data and submit the results to the regulatory authorities in China and in the U.S. for review and comment. We also intend to share these results with potential partners who have expressed an interest in co-developing the product with us in the U.S."

About Femprox

In the U.S., NexMed has completed a Phase 2 study for Femprox. The multi-center study was randomized, double-blind, placebo-controlled, and designed to investigate the efficacy and safety of the Femprox cream in 98 pre-menopausal women diagnosed with FSAD. Additional U.S. clinical development plans for Femprox are expected to advance following the securing of a U.S. partner.

About Female Sexual Arousal Disorder

Approximately 47 million American women are estimated to suffer from female sexual disorder, with symptoms that may include the inability to experience sexual arousal or orgasm as well as lack of sexual interest or painful intercourse. The FSAD market is projected to be a multibillion-dollar business opportunity, comparable in size to, if not larger than, the male erectile dysfunction market. Currently, there is no pharmaceutical product approved for treating FSAD. NexMed is among the front-runners in the race to develop a safe and effective treatment for FSAD.

About NexMed, Inc.

NexMed, Inc. is an emerging drug developer that is leveraging its proprietary drug technology to develop a significant pipeline of innovative pharmaceutical products to address large unmet medical needs. The Company is also working with various pharmaceutical companies to explore the incorporation of NexACT into their existing drugs as a means of developing new patient-friendly transdermal products and extending patent lifespans and brand equity.

Statements under the Private Securities Litigation Reform Act: with the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties that may individually or mutually impact the matters herein described, including but not limited to its ability to enter into partnering agreements or raise financing on acceptable terms, successful completion of clinical development programs, regulatory review and approval, product development and acceptance, manufacturing, competition, and/or other factors, some of which are outside the control of the Company.

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