Anika reports first quarter 1997 results.

WOBURN, Mass.--(BUSINESS WIRE)--Jan. 14, 1997--Anika Therapeutics Inc. (NASDAQ Small Cap: ANIK), formerly Anika Research Inc., announced today a net loss for the first quarter ended Nov. 30, 1996 of $924,000, or $.19 per share, compared with a net loss of $516,000, or $.16 per share, for the same period a year earlier.

First quarter revenues were $1,071,000 vs. $862,000 a year earlier.

J. Melville Engle, president and chief executive officer, said the loss for the quarter was planned and in line with expectations, noting that the higher operating expenses reflect continued investment in research and development and increased selling, general and administrative expenses.

"We are pleased to report that we have completed the enrollment of patients for our pivotal Phase III clinical trial for ORTHOVISC in the United States. We expect to complete these studies and submit a pre-market approval application for market clearance to the Food and Drug Administration by the end of 1997," Engle said. "For our AMVISC products we look forward to realizing higher margins in calendar 1997 from our new five-year supply contract with Chiron Vision, which has substantially higher unit selling prices."

Effective Jan. 1, 1997, the company will change its accounting year from an Aug. 31 year end to a Dec. 31 year end. Anika will report operating results on a transition report for the four- month period Sept. 1, 1996 through Dec. 31, 1996.

Anika is a leading developer and manufacturer of technologically advanced hyaluronic acid products for surgical and therapeutic medical applications. The company's commercial products include: ORTHOVISC for the treatment of osteoarthritis and temporomandibular joint (TMJ) dysfunction; AMVISC to maintain eye shape and protect delicate tissues during ophthalmic surgery; and HYVISC for the treatment of equine osteoarthritis. Products under development include: INCERT for the prevention of surgical adhesions and HA oligosaccharides for the treatment of cancer.

ANIKA RESEARCH INC.

Balance Sheets as of,             Nov. 30, 1996       Aug. 31, 1996
                                   (Unaudited)

ASSETS

Current assets:
 Cash and cash equivalents          $2,895,759          $3,651,023
 Accounts receivable                   857,975             631,916
 Inventories                         2,594,398           2,514,280
 Prepaid expenses                      372,780             502,207
   Total current assets              6,720,912           7,299,426

 Property and equipment              4,789,971           4,745,923
 Less accumulated depreciation       3,564,573           3,465,175
   Net property and equipment        1,225,398           1,280,748

   Total Assets                     $7,946,310          $8,580,174


LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                    $565,579            $645,484
  Accrued expenses                     895,470             795,832
     Total current liabilities       1,461,049           1,441,316

Other long-term liabilities            200,000             200,000

Redeemable convertible preferred
 stock; $.01 par value: authorized
 750,000 shares; issued and out-
 standing 126,259 shares, respectively;
 liquidation and redemption value of
 $20.00 per share plus accrued
 dividends                           2,582,442           2,523,483

Stockholders' equity:
 Undesignated preferred stock, $.01
  par value: authorized 1,250,000
  shares; no shares issued and
  outstanding                              ---                 ---
 Common stock, $.01 par value:
  authorized 15,000,000 shares;
  issued and outstanding 4,920,295
  shares and 4,840,726 shares,
  respectively                          49,203              48,407
 Additional paid-in capital         11,692,407          11,551,685
 Unearned stock option
  compensation                        (398,437)           (468,750)
 Accumulated deficit                (7,640,354)         (6,715,967)
   Total stockholders' equity        3,702,819           4,415,375

   Total liabilities and
    stockholders' equity            $7,946,310          $8,580,174

    -0-

ANIKA RESEARCH INC.
STATEMENTS OF OPERATIONS (UNAUDITED)

                                             Three months ended
                                                  Nov. 30,
                                          1996                1995

Net sales                           $1,070,053          $  861,671
Cost of sales                          988,042             825,104
     Gross profit                       82,011              36,567

Operating expenses:
  Research and development             594,630             300,809
  Selling, general and administrative  456,670             262,475
  Interest expense (income), net       (44,902)            (11,215)
     Total operating expenses        1,006,398             552,069

     Loss before income tax benefit   (924,387)           (515,502)

Income tax benefit                           -                   -
     Net loss                        ($924,387)          ($515,502)

Loss per share                           ($.19)              ($.16)

Primary and fully diluted shares
 outstanding                         4,898,134           3,293,264

CONTACT: Anika Research Inc.

Sean Moran, 617/932-6616

or

Pondel Parsons & Wilkinson

Susan Klein, 508/358-4315

Robert Whetstone, 310/207-9300