An-Con Genetics announced record first quarter results; revenues increase 25 percent.

MELVILLE, N.Y.--(BUSINESS WIRE)--May 16, 1996--An-Con Genetics Inc. (OTC BB: AGNT), today announced that revenues for the first quarter of fiscal year 1996, ended March 31, totalled a record $1,546,600 representing a 25 percent increase over the $1,232,300 recorded in the comparable period last year.

For the first three months of the current fiscal year the company reported a net income of $96,400, or 1 cent per share, versus a loss of $63,200, or a 2 cent loss per share, before extraordinary items, for the first quarter of 1995. Earnings per share were based on 4,372,007 outstanding shares in the first quarter of fiscal 1996 and 4,110,340 in the same period of fiscal 1995.

Chairman J. Robert Saron, in commenting on the financial results stated, "we are pleased with An-Con's performance and reflects the increased demand for our products."

In other news An-Con announced that subsequent to the close of the first quarter, the company commenced production of its new OmniFix 2000 tissue fixative (patent pending) for purposes of marketing through specialty laboratory distributors nationwide. OmniFix 2000 is a safer alternative to formalin, a chemical OSHA has identified to be carcinogenic.

"Management is extremely optimistic regarding the potential for OmniFix 2000, which markets include hospital and private clinical pathology laboratories and university, government and pharmaceutical industry research institutions," Saron said.

An-Con Genetics, through its wholly-owned subsidiary Aaron Medical Industries, is engaged in the manufacturing and marketing of a diverse line of premium medical devices and proprietary tissue fixatives. -0-

                         An-Con Genetics Inc.
                 Consolidated Statement of Operations
          For the Three Months Ended March 31, 1996 and 1995

                                               1996         1995

Sales                                      $ 1,546,600   $ 1,232,300

Costs and expenses:

Cost of sales                                  872,300       733,300
Research and development                        19,800         1,100
Professional services                           32,900        48,300
Salaries and related costs                     181,700       211,400
Selling, general and administration            316,600       301,400
                                             1,423,300     1,295,500

Gain (loss) from operations                    123,300     (  63,200)

Other income (expense):

Interest, net                                  (26,900)    (  10,600)
Miscellaneous                                       --         5,900
                                               (26,900)    (   4,700)

(Loss) before extraordinary item                96,400     (  67,900)

Extraordinary item:

Gain from settlement of debt, net of taxes          --        68,600

Income                                                           700

Provision for income tax                       (35,000)         (300)
Realized benefit of loss carryforward               --           300
Net income (loss)                          $    61,400   $       700

Per share:

Gain (loss) before extraordinary item      $       .01   $      (.02)
Extraordinary item                                  --           .02
Net income (loss)                          $       .01   $       .00

Weighted average number of shares
 outstanding                                 4,372,007     4,110,340

The accompanying notes are an integral part of the financial
statements.

CONTACT: An-Con Genetics Inc., Melville

Andrew Makrides, 516/694-8470