Anika reports fourth quarter and year- end results.

WOBURN, Mass.--(BUSINESS WIRE)--Oct. 25, 1995--Anika Research Inc. (NASDAQ: ANIK) announced today a net loss for the fourth quarter ended August 31, 1995 of $868,000, or $.27 per share, compared to a net loss of $585,000, or $.18 per share a year earlier. Fourth quarter revenues were $819,000 versus $1,047,000 a year earlier.

For the year ended August 31, 1995, Anika recorded a net loss of $1,955,000, or $.61 per share, compared to a net loss of $1,440,000, or $.45 per share in 1994. Revenues for fiscal year 1995 were $3,356,000 versus $4,663,000 in 1994.

Anika is a leader in developing technologically advanced HA products. The research and development program of Anika is focused on three areas: ORTHOVISC for osteoarthritis and temporomandibular joint dysfunction, INCERT for the prevention of post-surgical tissue adhesions and HA oligosaccharides (discrete pieces of HA molecule) for the treatment of cancer and drug delivery.

Balance Sheets and Statements of Operations for the Company are attached. -0-

ANIKA RESEARCH INC.

Balance Sheets as of,       August 31, 1995      August 31, 1994

ASSETS
Current assets:
Cash and cash equivalents     $2,824,663           $2,583,894
  Accounts receivable            190,976              188,484
  Inventories                  3,292,416            3,351,001
  Prepaid expenses               318,960              195,313
      Total current assets     6,627,015            6,318,692

Property and equipment         4,332,171            3,993,107
Less accumulated
 depreciation                  2,912,966            2,614,032

 Net property and equipment    1,419,205            1,379,075

 Total Assets                 $8,046,220           $7,697,767

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LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable               $353,444           $497,999
 Accrued expenses                309,859            300,664
 Current portion of
  long-term debt               1,000,000                 --
 Total current liabilities     1,663,303            798,663

Other long-term liabilities      520,757            520,757
Long-term debt                        --          1,000,000

Redeemable convertible
 preferred stock; $.01 par
 value: authorized 750,000 shares;
 120,970 shares issued and outstanding;
 liquidation and redemption
 value of $20.00 per share,
 plus accrued dividends        2,262,935                 --

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 3,291,475
 shares and 3,199,292 shares,
 respectively                     32,915             31,993
Additional paid-in capital     7,433,398          7,258,936
Accumulated deficit           (3,867,088)        (1,912,582)

  Total stockholders' equity   3,599,225          5,378,347
  Total liabilities and
   stockholders' equity       $8,046,220         $7,697,767

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ANIKA RESEARCH INC.
STATEMENTS OF OPERATIONS

                       Three months ended     Twelve months ended
                          August 31,              August 31,
                        1995      1994          1995      1994
                    (Unaudited) (Unaudited)

Net sales           $819,855    $1,047,075  $3,355,798  $4,662,681
Cost of sales      1,087,283     1,002,144   3,118,163   3,934,382
 Gross profit
 (loss)             (267,428)       44,931     237,635     728,299

Operating expenses:
 Research and
  development        372,753       413,320   1,317,667   1,495,514
 Selling, general
  and administrative 245,337       226,344     904,223     734,336
 Interest expense
  (income), net      (17,983)      (10,179)    (29,749)    (61,702)
  Total operating
   expenses          600,107       629,485   2,192,141   2,168,148

  Loss before income-
   tax benefit      (867,535)     (584,554) (1,954,506) (1,439,849)
Income taxes              --            --          --          --

   Net loss        ($867,535)    ($584,554)($1,954,506)($1,439,849)

Loss per share,
 primary and
 fully diluted         ($.27)        ($.18)      ($.61)       (.45)

Primary and fully
 diluted shares
 outstanding       3,267,449     3,189,840   3,225,205   3,177,094

CONTACT: Anika Research Inc., Woburn

Sean Moran, 617/932-6616