Research  Centre  J  lich                                   /logo/
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Forschungszentrum  J  lich  - BEO - D-52425 J lich     OF NORTH-RHINE WESTPHALIA
Delivery  Address:  Leo-Brandt-Strasse  -  D-52428  J  lich

     BEO
     PROJECT  AGENCY  FOR
     BIOLOGY,  ENERGY,  ECOLOGY
     OF  THE  MINISTRY  OF  ECONOMIC  AFFAIRS  AND  SMALL  AND
     MEDIUM-SIZED  BUSINESS,  TECHNOLOGY  AND  TRANSPORT
                               Your  contact  partner:  Ms.  Voigt  /  Ms.  Kehr
GlukoMeditech AG            To  be  indicated  on  reply:  BEO32/9804v04/VK/S-ZB
Mr.  Prof.  Dr.  Wolfgang Barnikol        Telephone: (0 24 61) 61  27 06 / 27 34
Alfred-Herrhausen-Strasse  44        Telefax:  (0  24  61)  61  27  30  or 28 40
                                              E-mail:    beo32.beo@fz-juelich.de
58455  Witten  an  der  Ruhr                    J  lich,      30  November  1998



                     A P P R O P R I A T I O N   N O T I C E
                                (Project Support)

Re.:           Promotion Subsidies of the Federal Land of North-Rhine-Westphalia
               here:     Technology  Programme  Economy  (TPW) - Programme  Part
               Public  Health  System
               Ref.  No.:        315  -  9812G04
               Promotion  No.:  001  -  9906  -  0011
               Project:     DEVELOPMENT  OF  A  PERMANENTLY  IMPLANTABLE GLUCOSE
                         SENSOR  AND  OF A CONTROLLABLE INSULIN FOR DIABETICS IN
                         ONE  TECHNICAL  BETA  CELL

Reference:     Your  application of 15 October 1998, revised as per letter of 04
May  1999

Appendices:       1     General  Collateral Regulations for the Appropriation of
Project  Promotion  Subsidies  (ANBest-P)
       2     Special  Collateral  Regulations  for  the Appropriation of Project
             Promotion  Subsidies  (BNBest-P)
       3     Work,  Time and Expenditure Schedule (including Appendices A, B and
             C)
       4     Determination  of  the  need  for  subsidy
       5     Request  for  Appropriation  form
       6     Proof  of  Utilization  form  (partial  proof  of  utilization)
       7     Proof  of  Utilization  form  (final  proof  of  utilization)
       8     Final  Report  form
       9     Exploitation  Report  form
     10     Term  Sheet
     11     Waiver  of  Legal  Remedies  form

<PAGE>
Dear  Sirs,

1.     APPROPRIATION:
     On  your above-mentioned application, we grant you, out of the funds of the
Ministry of Economic Affairs and Small and Medium-Sized Business, Technology and
Transport  of North-Rhine Westphalia (MWMTV-NW), for the period from 14 December
1998  to 30 November 2001 (appropriation period), the appropriation of a subsidy
to  the  amount  of
                    DM  4,340,763.00
     amount  in  words:  four-three-four-zero-seven-six-four  German  Marks.

2.     THE  APPROPRIATION  IS  GRANTED  FOR  THE  ABOVE-MENTIONED  PROJECT.
     The project-tying period for the items acquired with the subsidy is 3 years
(from the end of the appropriation period). After the expiration of that period,
you  can  freely  dispose  of  such  items.

3.     TYPE/AMOUNT  OF  FINANCING,  EXPENDITURE  ELIGIBLE  FOR  SUBSIDY
     The subsidy is granted as a contribution in the form of a partial financing
(maximum  amount  - see appropriation amount) of total expenditures eligible for
subsidy  to  an  amount  of  DM  10,851,915.00.
     The  percentage  of  the  partial  financing  and  the determination of the
expenditure  eligible  for  subsidy  are  based  on  Appendices  3  and  4.

4.     APPROPRIATION  LINE
     Of  the  subsidy  amount,  there  are  attributed  to
               Appropriation  in  the  year  of  issue:      DM          0.00
               Appropriation  commitment:                    DM  4,340,764.00
               of  that,  in     2000     DM  3,262,584.00
                                 2001     DM  1,078,180.00

5.     PAYMENT
     The  subsidy shall be paid out upon request according to Items 1.4, 1.41 of
ANBest-P.
     In  your  telefax message of 03 August 1998, you agreed to make the initial
call  of funds only in the year of 2000. Nevertheless, if permitted by the funds
situation,  we  will  provide the funds applied for as required in the financial
year  of  1999  already.

<PAGE>

     A  special  bank  account  must be opened for the management of the amounts
called.  Any interest on deposits credited to such special account must be fully
transferred  to  the  Federal  Land  of  North-Rhine  Westphalia.

COLLATERAL  REGULATIONS
1.     The  ANBest-P  and  BNBest-P  annexed  to  this  notice  as  well  as the
appendices  3  to  10  are  an  integral  part  of  this  notice.
2.     Moreover,  we  ask  you note that promotion funds of the Land must not be
used for the financing of market services, neither directly nor indirectly. This
in  particular  applies  to  any devices acquired from and investments made with
funds  of  the  Land  during  the  tying  period.
3.     This  notice is given subject to the condition precedent that the overall
financing  of  the  project,  in  particular  the financing of the own share, is
proven  in  a  transparent and binding manner. The first request for payment can
only  be  complied  with  after  this  requirement  has  been  met.

REMARK
We  point  out  that  all  information  given  in  the  application  that  the
appropriation, granting, reclamation, further granting or leaving of the subsidy
depends  on,  in accordance with the "Guidelines on the Appropriation of Project
Promotion  Subsidies  under the Technology Programme Economy of the Federal Land
of  NRW",  circular  order  of  the  Minister  of  Economic  Affairs,  Small and
Medium-Sized  Business  and  Technology  of  20  March  1985,  is  regarded  as
subsidy-relevant information within the meaning of   264 of the Criminal Code in
connection  with   1  of  the  Land  Subsidy  Act.
You  are obliged to immediately report any facts that prevent the appropriation,
granting,  further  granting,  utilization  or  leaving  of  the  subsidy or are
relevant  to  the  reclamation  of  the  subsidy.
In  case  the project development is delayed and therefore the partial amount of
the  subsidy  planned for the respective calendar year is not needed to its full
amount  or if the project cannot be completed until the end of the appropriation
period,  you  should notify us immediately, but not later than two months before
the  end of the respective calendar year or of the appropriation period, so that
it  will  be  possible  to  consider in time whether a notice of change is to be
issued.


<PAGE>
INSTRUCTION  ABOUT  AVAILABLE  LEGAL  REMEDIES
Objection  against  this  notice  can  be  lodged  within  one  month  after the
notification.  The  objection  must  be  filed in writing or for record with the
Research  Centre  J  lich  GmbH,  Wilhelm-Johnen-Strasse,  52428  J  lich.
If  an  objection is lodged in writing, the time limit is only observed when the
letter  of  objection  is  received by the Research Centre J lich GmbH until the
expiration  of  the  above-specified  period.
In  case  of  a  failure  to observe the time limit due to the fault of a person
authorized  by  you,  such  fault  will  be  attributed  to  you.
The  payment  of  the  subsidy can only be effected after this notice has become
legally  valid.  You  can  bring  about  the legal validity of the appropriation
notice  and  thus  expedite  the payment by declaring in writing to the Research
Centre  J  lich  GmbH  that  you  waive  the  filing of an appeal (Appendix 11).

With  kind  regards
Research  Centre  J  lich  GmbH
p.p.                 p.p.
/signature/          /signature/
Dr.  K.  Koch          Dr.  M.  Wehner


                         /signature/