AMBI Reports Fiscal 1997 Fourth Quarter and Year-End Results.

TARRYTOWN, NY--(BW HealthWire)--Aug. 22, 1997--

Results Do Not Include Financial Impact of Profitable

Nutrition 21 Acquisition

AMBI Inc. (Nasdaq: AMBI) today reported financial results for the fourth quarter and for the 12 months ending June 30, 1997.

Revenues for the fiscal year ending June 30, 1997 were $11.3 million as compared to $16 million for the corresponding period a year ago. The net loss was $6.8 million or $.37 per share as compared to $4.7 million or $.27 per share for the previous year.

Revenues for the fourth quarter ending June 30, 1997 were $.9 million as compared to $5.8 million for the corresponding period a year ago. The net loss was $3.7 million or $.21 per share as compared to $2.4 million or $.13 per share for the previous fourth quarter.

The company noted that the financial statements include the results of the company's food preservatives business for the first half of the fiscal year and the company's gain on the sale of this business in December 1996. The financial statements do not include the results of Nutrition 21, acquired on Aug. 11, 1997. Nutrition 21's sales and profits greatly exceeded those of the divested food preservative business in 1996.

Fredric D. Price, president and chief executive officer, commented, "With the acquisition of Nutrition 21, a highly profitable nutrition and dietary supplements company, and the implementation on July 1 of a cost reduction program, we are already seeing a substantial improvement in our financial picture through the first seven weeks of the new fiscal year that began on July 1.

"During the past eight months, we have significantly changed the strategy and financial outlook of the company, first by divesting the food preservatives business to focus exclusively on healthcare, second by acquiring Nutrition 21, a company that recorded more than $6 million in pre-tax profit last year, and third by holding the line on expenses. We have eliminated expenditures that are not critical to the process of generating sales or of meeting drug development milestones."

Price continued, "Despite the loss for the year, we made substantial progress in both our nutrition and pharmaceuticals business units: AMBI launched its first nutrition product, Cardia(TM) Salt Alternative, and reported significant achievements in drug development. We anticipate filing an Investigational New Drug Application for the use of nisin, our proprietary anti-bacterial drug candidate, by the end of this quarter.

"We are actively pursuing partnerships for our drug candidates, in addition to those in place with Astra Merck and Nippon Shoji Kaisha, with other companies that have a strong commercial presence."

The company noted that it ended the year with $8.6 million in cash before the acquisition of Nutrition 21. AMBI indicated that it received a majority of the $10 million payment necessary to complete the acquisition with a line of credit of up to $7.3 million from State Street Bank and Trust.

AMBI develops and commercializes nutrition products for cardiovascular and other conditions and develops pharmaceuticals for serious infectious diseases.

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, the regulation of AMBI's business generally and the other risks and uncertainties set forth in "Risk Factors" and elsewhere in AMBI's Registration Statement on Form S-3 and the Prospectus dated June 18, 1996 constituting a part thereof and Form 10-Q for the quarter ended March 31, 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. -0-

                                 AMBI Inc.
                  Condensed Consolidated Balance Sheets
                              (in thousands)

ASSETS                          6/30/97           6/30/96
                              (Unaudited)          (Note)

Current Assets
  Cash                          $ 8,615           $ 8,431
  Accounts Receivable               390             5,356
  Inventories                       606             3,088
  Other current assets              404               874
Total Current Assets             10,015            17,749

Property, and equipment, net      1,082             3,881
Patent costs, net                 1,584             1,624
Other assets                         73               113
Total Assets                   $ 12,754          $ 23,367

LIABILITIES, REDEEMABLE
  PREFERRED STOCK AND
  STOCKHOLDERS' EQUITY

Current Liabilities
  Current Portion of Notes
    Payable and Lease
    Obligation                 $    127          $    195
  Accounts Payable and
    Accrued Expenses              2,493             1,889
  Other current liabilities         340               853
Total Current Liabilities         2,960             2,937

Long Term Debt, Note Payable
  and Lease Obligation            2,184             2,935
Deferred Taxes                       --               349
Total Liabilities                 5,144             6,221

Redeemable Preferred Stock           --             1,500

Stockholders' Equity              7,610            15,646

Total Liabilities, Redeemable
  Preferred Stock & Stockholders'
  Equity                        $12,754          $ 23,367

Note:  The Balance Sheet as of 6/30/96 has been derived from audited
consolidated financial statements at that date.
-0-

                               AMBI Inc.
             Condensed Consolidated Statements of Operations (1)
                   (in thousands except Per Share Data)

                                     Year Ended June 30
                                 1997                 1996

Sales                       $  10,356             $  14,157
Other Operating Revenue           924                 1,865

Total Revenues                 11,280                16,022
Cost of Sales                  (4,363)               (6,353)

Gross Profit                    6,917                 9,669
Selling, General &
 Administrative Expenses      (17,148)              (11,177)
Research Costs                 (4,833)               (2,294)
Depreciation and Amortization    (536)                 (819)

Operating Loss                (15,600)               (4,621)
Exchange Difference                --                     3
Interest Income                   433                   317
Interest Expense                 (142)                 (133)
Gain on Sale of Aplin &
 Barrett                        8,648                    --

Loss Before Tax Expense        (6,661)               (4,434)
Tax Expense                      (152)                 (285)

Net Loss                       (6,813)               (4,719)

Loss Per Share              $   (0.37)            $   (0.27)

Average Outstanding Shares     19,545                19,092

(1) The 1997 Statement of Operations include the results of
operations for Aplin & Barrett (the food preservative business)
Limited through December 11, 1996, while the 1996 Statement of
Operations include the results of operations for Aplin & Barrett
Limited for the full year.

CONTACT: The Investor Relations Group

Dian Griesel Ph.D., 212/664-8489

or

AMBI Investor Relations, 914/345-6888