Albany Molecular Research, Inc. Wins New 3-Year Contract from the National Institute on Drug Abuse.

Business Editors

ALBANY, N.Y.--(BUSINESS WIRE)--May 7, 2004

Albany Molecular Research, Inc. (Nasdaq: AMRI) has been awarded a three-year contract valued at up to $3 million by the National Institute on Drug Abuse (NIDA) to manufacture potential treatments for substance abuse.

Under the terms of the agreement, AMRI will provide chemical manufacturing of bulk drug substances for use in preclinical and clinical trials, based on specific task orders issued by NIDA during the three-year term of the contract. The work will be conducted under current Good Manufacturing Practices (cGMP) guidelines promulgated by the U.S. Food and Drug Administration. cGMP procedures require the implementation of rigorous quality systems to ensure that active pharmaceutical ingredients and final drug products meet strict purity standards before being administered to animals or humans.

The award marks the second time that the company has worked with NIDA. In 1998, AMRI was awarded a separate three-year contract by NIDA valued at up to $3.6 million. Both awards resulted from a highly competitive bidding process.

"We are delighted to be selected again as a manufacturing partner for NIDA, and to support its mission of developing new treatments for substance abuse," said Thomas E. D'Ambra, Ph.D., chairman, president and chief executive officer of Albany Molecular Research, Inc. "We believe that, in addition to recognizing AMRI's ability to manufacture drug substances at the highest quality standards in the industry, this award acknowledges the scope and depth of AMRI's chemical manufacturing capabilities, including our specialized controlled substance manufacturing abilities, as well as our extensive on-site analytical services and quality control."

Albany Molecular Research, Inc. is a leading research, drug discovery, development and manufacturing company built on a chemistry platform of comprehensive and integrated technologies, resources and capabilities. The company conducts research and development with many leading pharmaceutical and biotechnology companies and for its own internal discovery programs, and provides cGMP manufacturing of active pharmaceutical ingredients through its wholly owned subsidiary, Organichem Corporation. For more information, please visit www.albmolecular.com.

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. These statements may be identified by forward-looking words such as "may," "could," "should," "would," "will," "intend," "expect," "anticipate," "believe" and "continue" or similar words. Readers should not place undue reliance on our forward-looking statements. The company's actual results may differ materially from such forward-looking statements as a result of numerous factors, some of which the company may not be able to predict and may not be within the company's control. Factors that could cause such differences include, but are not limited to (a) the company's ability to attract and retain experienced scientists, (b) trends in pharmaceutical and biotechnology companies outsourcing chemical research and development, (c) the company's ability to take advantage of proprietary technology and expand the scientific tools available to it, (d) the company's ability to expand and integrate its drug discovery and development technologies, as well as those factors discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2003 as filed with the Securities and Exchange Commission on March 15, 2004 and the company's other SEC filings. The company does not undertake any duty to and does not intend to update any forward-looking statements contained in this press release after the date of this press release.