AMBI Forecasts Profit for the Current Fiscal Year vs. $16 Million Loss in Prior Fiscal Year.

TARRYTOWN, N.Y.--(BW HealthWire)--Feb. 12, 1998--

Company Anticipates Revenues to be up 70% and Net

Income as Well as Cash Flow From Operations to be Positive

AMBI Inc. (Nasdaq: AMBI) indicated that net income for the year ending June 30, 1998 should be positive and that it should be more than $16 million greater than Net income for the prior fiscal year, excluding a one time gain in the prior year realized from the sale of the Company's food preservatives business in December 1996.

The forecast was made by the Company's President and CEO, Fredric D. Price, at the Red Chip Review's Investor Conference in San Francisco, California.

Mr. Price also indicated that AMBI was currently generating positive cash flow from operations, defined as net income plus non-cash charges such as depreciation and amortization. "We anticipate that we should generate about $2 million in cash flow from operations in the current fiscal year. We recently reported net income of $.4 million and cash flow from operations of $1 million for the quarter ended December 31, 1997 and we anticipate that revenues for the year should be up more than 70% to more than $19 million."

AMBI develops and markets nutrition products that have a proprietary position and that have demonstrated their medical value in "pharmaceutical-type" clinical trials. The Company has 3 products on the market today and is developing several others, mostly in the area of cardiovascular disease and diabetes.

The Company noted that the publication of an article that demonstrated the benefits of the Company's chromium picolinate dietary supplement in the November 1997 issue of Diabetes, the official journal of the American Diabetes Association, was an important milestone and helped set the stage for the upcoming International Symposium on the Health Effects of Dietary in Dedham, Massachusetts on May 1-2. The symposium is co-sponsored by Tufts University School of Medicine and the United States Department of Agriculture.

Mr. Price also indicated that the new product development programs are on track and that the Company will introduce a new product prior to the end of the current fiscal year on June 30, 1998. He also stated that AMBI was looking for acquisitions and for corporate partners for the Company's antibacterial drug development programs. -0-

The statements in this press release that are not historical facts are forward-looking statements based upon current expectations. Such forward-looking statements involve risks and uncertainties, including risks and uncertainties set forth in "Risk Factors" and elsewhere in AMBI's Registration Statement on Form S-3 and the Prospectus dated June 27, 1997 and AMBI's Form 10-K for the year ended June 30, 1997. Actual results and timing of certain events could differ materially from those indicated in the forward-looking statements as a result of these and other factors.

CONTACT: AMBI, Tarrytown

Investor Relations, 914/345-6888