Access Pharmaceuticals announces year end financial results.

DALLAS--(BUSINESS WIRE)--APRIL 4, 1997--ACCESS PHARMACEUTICALS, INC. (OTC BULLETIN BOARD: AXCS) today reported their year end financial results for the period ended December 31, 1996.

The company's net loss for 1996 was $11,462,000, or $.38 per share compared with a net loss of $1,099,000 or $.09 per share recorded in 1995. The loss for 1996 reflects non-cash expenditures for the accounting treatment of the merger, which resulted in a write-off of excess purchase price of $8,314,000.

Research and development expenses increased to $1,405,000 in 1996 from $728,000 incurred during 1995, due to the acceleration and expansion of product development activities, external research expenditures and additional scientific staffing. General and administrative expenses were impacted by increases in: business consulting, including the change in accounting standards which resulted in the recording of a non-cash expense of $344,000 for recording of the fair value of granted warrants; costs associated with the merger; legal costs of being a public company; and incremental business activities, which increased these expenses to $1,938,000 in 1996, compared with expenses of $641,000 reported in 1995.

Commenting on the company's progress throughout 1996, Kerry P. Gray, President and Chief Executive Officer of Access Pharmaceuticals, stated, "Our financial results for 1996 are in line with expectations and the Company's operations are progressing according to plan. 1996 has been an exciting and productive year for Access Pharmaceuticals. We continued to advance our products through the development process, enhanced our scientific organization, and expanded external scientific collaborations. We achieved many milestones, which were designed to position Access at the forefront of drug delivery technology, and have laid the foundation for our future growth, including:

-- Merger with Chemex

-- Private placement yielding $6 million

-- Agreement to acquire Tacora Corporation, a company with complementary technology

-- FDA approval of Amlexanox, a product jointly developed with Block Drug, and the first prescription treatment for canker sores

-- Licensed the company's zinc patent to Strakan Ltd., a private company focused on the transport of active drug compounds, onto, into and through the skin

-- Strengthened management team with the addition of Dr. Glynn Wilson, Vice President-Research & Development, Dr. Richard Van Inwegen, Vice President-Pre-Clinical Development, and Eric Bowditch, VP-Business Development

-- Signed agreement with The University of London, School of Pharmacy for development of Polymer Cisplatin, AP-5070

-- Expansion of the Board of Directors with internationally recognized scientific and business appointments, Dr. Stephen Howell and Dr. Max Link."

Mr. Gray continued, "We expect 1997 to be a pivotal year for the company as we continue to build our portfolio of polymer-based therapeutics, expand our scientific collaborations, and strengthen our corporate infrastructure. We furthered our scientific collaborations with the recent announcement of our letter of intent with Dow Chemical for the joint development of products utilizing Dow's chelation technology and Access' BioResponsiveT Polymer Systems. In addition, we continue to pursue opportunities to capitalize and expand upon our platform technology: polymer-based therapeutics for the enhancement of drug delivery."

Access Pharmaceuticals is a polymer-based, therapeutics company providing a new dimension in drug delivery in controlling site directed targeting, localized release and clearance of therapeutic drugs, imaging agents and radiopharmaceuticals.

This press release contains certain statements that are forward- looking and that involve risks and uncertainties, including but not limited to the uncertainties associated with research and development activities, future capital requirements, dependence on others, collaborations and other risks detailed in the Company's reports filed under the Securities and Exchange Act, including the Company's annual report on Form 10-K for the year ended December 31, 1996. -0-

                     Access Pharmaceuticals, Inc.
                     (a development stage company)

                         FINANCIAL HIGHLIGHTS

                              Three Months Ended      Fiscal Year Ended
                                  December 31,          December 31,
                                 1996      1995        1996    1995
Revenues:

Research and development     $      -  $ 115,000 $        -    $690,000
Option income                   2,000          -    167,000           -
  Total Revenues                2,000    115,000    167,000     690,000

Expenses:

Research and development      518,000    181,000  1,405,000     728,000
General and administrative    793,000    281,000  1,938,000     641,000
Depreciation and
 amortization                  15,000    274,000    123,000     367,000
Write-off of excess purchase
  price                             -          -  8,314,000           -
   Total Expenses           1,326,000    736,000 11,780,000   1,736,000

Loss from Operations       (1,324,000)  (621,000)(11,615,000)(1,046,000)

Other Income (Expense):

Interest and miscellaneous
 income                        58,000      1,000     196,000      5,000
 Interest expense              (8,000)    (9,000)    (45,000)   (58,000)
                               50,000     (8,000)    151,000    (53,000)

Loss before Income Taxes   (1,274,000)  (629,000) (11,462,000) (1,099,000)
Provision for Income Taxes          -          -           -          -
Net Loss                  $(1,274,000) $(629,000)$(11,462,000)$(1,099,000)

Loss Per Share                $ (0.04)   $ (0.05)     $ (0.38)    $ (0.09)

Shares used in computing
 loss per share            31,391,324  13,919,998  29,845,560  11,846,329


SELECTED BALANCE SHEET INFORMATION

                                December 31, 1996  December 31, 1995

Cash and cash equivalents         $  4,428,000     $     30,000
Total assets                         4,928,000          424,000
Working capital                      3,944,000         (516,000)
Deficit accumulated during the
 development stage                 (15,307,000)      (3,845,000)
Total stockholders' equity/deficit   4,060,000         (349,000)
-0-

CONTACT: Lippert/Heilshorn & Associates, Inc.

Keith Lippert/Evan Smith

[phone]

or

Kerry P. Gray

President & CEO

[phone]