Albany Molecular Research, Inc. Reports First Quarter 1999 Results.

ALBANY, N.Y.--(BUSINESS WIRE)--May 5, 1999--

Record Net Contract Revenue Grows 54%, Recurring Royalties

Grow 142%

Albany Molecular Research, Inc. (NASDAQ: AMRI) today announced operating results for the quarter ended March 31, 1999. Total revenue for the quarter was $8.6 million. Of this figure, net contract revenue for the quarter was a record $4.4 million, a 54% increase over net contract revenue of $2.9 million for the comparable period in 1998. Recurring royalties for the first quarter of 1999 were $4.2 million, a 142% increase over recurring royalties of $1.7 million in the first quarter in 1998. In the first quarter of 1998, the Company also received $6.4 million in non-recurring milestone payments and royalties attributable to prior periods. Royalty revenue is earned from worldwide sales of the non-sedating antihistamine Allegra(TM), resulting from a 1995 licensing agreement the Company entered into with Hoechst Marion Roussel, the manufacturer of Allegra(TM).

Net income for the first quarter of 1999 was $2.8 million, or $0.22 per share on a diluted basis. Net income for the first quarter of 1998, excluding the non-recurring milestones and royalties, was $1.0 million, or $0.08 per share on a diluted basis. Net income for the first quarter of 1998 including all recurring and non-recurring items was $4.5 million, or $0.38 per share on a diluted basis.

"The sustained growth in our net contract revenue reflects the fundamental strength of our business", said Thomas E. D'Ambra, Ph.D., Chairman and Chief Executive Officer of Albany Molecular Research, Inc. "The first quarter of 1999 was one of accomplishment. In addition to achieving 54% growth in net contract revenue over the same period last year, we also completed a successful initial public offering in early February and completed a 60,000 square foot facility expansion. As a result of our facility expansion, we are well positioned to support further growth in staffing. Furthermore, our efforts in recruiting continue to be successful, with 26 scientists having accepted laboratory positions from the beginning of the year to date."

Albany Molecular Research is an integrated chemistry outsourcing company that offers a broad range of chemistry research and development services to pharmaceutical and biotechnology companies involved in drug discovery and development. The Company offers services traditionally provided by chemistry divisions within pharmaceutical companies, including medicinal chemistry, chemical development, analytical chemistry services and small-scale manufacturing. The Company's objective is to be the leading provider of comprehensive outsourced chemistry research services to the pharmaceutical and biotechnology industries.

Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties. The Company's actual results may differ materially from such forward-looking statements. Factors which could cause such differences are discussed in the Company's Annual Form 10-K for the year ended December 31, 1998 as filed with the Securities and Exchange Commission on March 31, 1999, as well as the Company's other SEC filings. -0-

                   Albany Molecular Research, Inc.
              Condensed Consolidated Statements of Income
                              (Unaudited)

                                              Three Months Ended
                                                   March 31,
                                            1999             1998

In thousands, except for per share data

Net contract revenue              $        4,426   $        2,873
Cost of contract revenue                   2,503            1,508
Gross profit                               1,923            1,365

Other operating revenue:
  Non-recurring royalties and milestones     -              6,369
  Recurring royalties                      4,184            1,730
  Technology incentive award                (415)            (810)
Other operating revenue, net               3,769            7,289

Operating expenses:
  Research and development                   129              209
  Selling, general and administrative      1,263            1,083
Total operating expense                    1,392            1,292
Income from operations                     4,300            7,362

Interest income, net                         178               26
Other non-operating income                    57                4

Income before income taxes                 4,535            7,392

Income tax expense                         1,700            2,853

Net income                        $        2,835   $        4,539

Net income per share:
Basic                             $         0.24   $         0.42
Diluted                           $         0.22   $         0.38

Weighted average number of shares outstanding:
Basic                                     11,638           10,779
Diluted                                   12,943           12,100