Albany Molecular Research, Inc. to Combine Midwestern Operations.

Business Editors

ALBANY, N.Y.--(BUSINESS WIRE)--Oct. 31, 2001

In a move to consolidate its Midwestern operations, Albany Molecular Research, Inc. (Nasdaq: AMRI) today announced plans to relocate its Biocatalysis Division from Iowa City to the Chicago area, effective in 2002.

Under the plan, AMRI's Biocatalysis Division, currently located in the University of Iowa's Oakdale Research Park in Iowa City, Iowa, will move its operations to the company's recently acquired facilities in Mount Prospect, IL, about twenty miles from downtown Chicago. AMRI purchased the 88,000 square-foot facility from Great Lakes Chemical Corporation on September 21, 2001. The building contains scientific laboratories, a pilot plant, and state-of-the-art fermentation facilities. AMRI currently employs 49 individuals in Mount Prospect and 29 in Iowa City. The Mount Prospect facility has the potential to house 200 employees, including 125 to 150 chemists.

Said Albany Molecular Research, Inc. Chairman and Chief Executive Officer Thomas E. D'Ambra, Ph.D., "We see immediate and promising synergies between Iowa's biocatalysis-based technologies and Mount Prospect's capabilities in gene expression, strain optimization and fermentation scale-up technologies. We believe that merging the people and assets of these two locations will significantly enhance AMRI's ability to maximize the novel discoveries that may emerge from both our combinatorial biocatalysis and natural products technologies."

D'Ambra continued, "While it was not a pleasant decision to consolidate the Iowa operations in the Chicago area, given the similarities and synergies between the two locations, the existing space to expand in Mount Prospect and cost-saving considerations, the choice was straightforward. We understand the difficulty that relocation can present in the lives of employees, their families and the community. We will do our very best to complete this transition with as little disruption as possible. Our Biocatalysis Division grew up and came of age in the Oakdale Research Park, and we recognize the contributions of our many friends in Iowa, including the many public officials, faculty and staff at the University of Iowa, in helping to make that growth possible. We regret being in a position to make this decision. Nevertheless, we do this with the company's best long-term interests as our motivation."

AMRI will offer relocation packages to those who continue with the company, as well as severance packages and outplacement services for those not relocating. The transition is expected to be completed during the first half of 2002.

AMRI Chief Financial Officer David P. Waldek said, "The consolidation will result in one-time relocation costs of approximately $850,000 to be incurred over the next 9 months. The relocation costs will be offset by the anticipated annual savings associated with closing the Iowa facility of approximately $500,000. We anticipate the relocation costs in the fourth quarter of 2001 to be approximately $100,000. Long term, we believe this consolidation will result in enhanced collaboration among scientists, smoother technology transfer, and continued operating efficiencies."

AMRI's Biocatalysis Division is home to the company's unique combinatorial biocatalysis technology, which uses enzymes and microbial systems to generate novel compounds with potential use as small molecule prescription drugs. The company purchased this operation, formerly EnzyMed, Inc., in October 1999.

Albany Molecular Research, Inc. is a chemistry-based drug discovery and development company, focusing on applications for new small molecule prescription drugs. The company conducts R&D projects and collaborates with many leading pharmaceutical, biotechnology and genomics companies, and is developing new chemistry technology for potential prescription drug applications.

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 include, but are not limited to, statements regarding the expected impact of the consolidation of the Company's Biocatalysis Division in Mount Prospect, its future business and its 2001 and 2002 results. These statements may also 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 integrate the Biocatalysis Division into the Mount Prospect facility and take advantage of anticipated synergies of the consolidation, (b) the company's ability to attract and retain experienced scientists, (c) trends in pharmaceutical and biotechnology companies outsourcing chemical research and development, (d) sales of Allegra (including any deviations in estimates provided by Aventis) and the company's receipt of significant royalties from its Allegra license agreement, (e) the possibility that Allegra will be approved by the FDA for over-the-counter sales and the potential adverse effects to the company's licensing revenues as a result of such determination, (f) the company's and Aventis' ability to successfully enforce their intellectual property, patent rights and technology, including with respect to the recent Barr ANDA filings, (g) the company's ability to take advantage of proprietary technology and expand the scientific tools available to it, (h) the ability of the company's strategic investments and acquisitions to perform as expected, (i) the company's ability to successfully complete its ongoing expansion projects on schedule and integrate acquired companies, and (j) the company's ability to effectively manage its growth, as well as those factors discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2000 as filed with the Securities and Exchange Commission on April 2, 2001 and the company's other SEC filings. The company does not undertake or intend to update any forward-looking statements contained in this press release after the date of this press release.