Access Pharmaceuticals announces second quarter results.

DALLAS--(BUSINESS WIRE)--Aug. 28, 1996--ACCESS PHARMACEUTICALS INC. (OTC BULLETIN BOARD: AXCS) today reported a net loss of $631,000, or $0.02 per share, for the second quarter ended June 30, 1996, as compared to net income of $13,000, for the second quarter in 1995.

The Company had no revenue in the second quarter 1996 as compared to $395,000 of sponsored research and development revenues in 1995. Research and development expenses increased from $204,000 in 1995 to $243,000 in 1996 reflecting the increase in scientific staffing. General and administrative expenses were impacted by merger related expenses and the costs associated with being a public company which increased expenses to $388,000 in 1996 compared with $133,000 in 1995.

"The results are in line with the operating plans of the Company," said Kerry P. Gray, President and Chief Executive Officer. "The Company has enhanced the scientific and management teams and has advanced product development in line with our objectives."

Year to date loss of $9,316,000 or $0.33 cents per share reflects the accounting treatment of the merger which resulted in a write- off of excess purchase price of $8,314,000. Operating expense increases are principally due to the merger and the public company reporting and compliance requirements.

Access Pharmaceuticals is an emerging biopharmaceutical company with a broad platform technology for enhancing the site targeting and clearance of therapeutic drugs, diagnostics and radiopharmaceuticals. -0-

                       ACCESS Pharmaceuticals Inc.
                       a development stage company

                         Selected Financial Data

                      Statements of Operations Data
                               (unaudited)

                                     For the               For the
                                Three Months Ended     Six Months Ended
                                     June 30,              June 30,
                                  1996      1995       1996       1995
Revenues:
  Research and development          --  $ 395,000       --     $ 530,000
  Option income                     --        --    $ 165,000       --
        Total revenues              --    395,000     165,000    530,000

Expenses:
  Research and development      243,000   204,000     424,000    419,000
  General and administrative    388,000   133,000     724,000    287,000
  Interest                       14,000    15,000      27,000     36,000
  Depreciation and amortization  36,000    31,000      72,000     62,000
  Write-off of excess
   purchase price                    --        --   8,314,000         --
        Total expenses          681,000   383,000   9,561,000    804,000

Net Income (Loss) From
 Operations                    (681,000)   12,000  (9,396,000)  (274,000)

Other income-interest            50,000     1,000      80,000      4,000
        Net Income (Loss)    $ (631,000) $ 13,000 $(9,316,000) $(270,000)

Loss per share               $    (0.02) $   0.00 $     (0.33) $   (0.09)

Shares used in computing
          Loss per share     31,346,866 2,918,328  28,285,296  2,918,328

-0-

                                  Balance Sheet Data
                            June 30, 1996   Dec. 31, 1995
                             (unaudited)

Cash and cash equivalents   $ 5,980,000     $    30,000
Total assets                  6,442,000         424,000
Working capital               6,112,000        (515,000)
Deficit accumulated during
  the development stage     (13,160,000)     (3,847,000)
Total stockholders' equity    5,851,000        (348,000)
-0-

CONTACT: Lippert/Heilshorn & Associates, Inc.

Keith Lippert, Financial Contact

212/838-3777

or

Access Pharmaceuticals

Kerry P. Gray, President & CEO

214/905-5100