Applied Immune Sciences reports fourth quarter and fiscal 1994 results.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 16, 1995--Applied Immune Sciences Inc. (NASDAQ/NMS:AISX) reported a net loss of $7,788,000, or 68 cents per share, on revenues of $386,000 for the fourth quarter ended Dec. 31, 1994.

Revenues for the like period in 1993 were $162,000, with a net loss of $8,757,000, or 76 cents per share.

The company reported year to date revenues of $1,112,000, and a net loss of $31,126,000, or $2.71 per share, compared to $617,000 in revenues and a net loss of $39,023,000, or $3.69 per share, for the like period in 1993.

The company incurred a special charge of $598,000 in the fourth quarter and $4,993,000, year to date relating to the investment and other agreements with Rhone-Poulenc Rorer Inc. which was announced June 3, 1993, approved at the Special Shareholder Meeting on Sept. 21, 1993, and closed on Sept. 22, 1993. 1993 charges for the transaction were $747,000, in the fourth quarter and $9,615,000, year to date.

Sales of the AIS MicroCELLector, the laboratory research version of its patented device, which allows scientists to isolate specific cells from blood, bone marrow and other tissues, were $129,000 in the fourth quarter of 1994 and $162,000 in the comparable period of 1993. Year to date product sales were $512,000, compared to $617,000 for the like period in 1993.

Applied Immune Sciences develops, manufactures and delivers innovative cell and gene therapy products designed to enhance and restore the immune system in immune-related conditions such as bone marrow transplantation and autoimmune, infectious and malignant diseases.

AIS entered into a strategic alliance with Rhone-Poulenc Rorer in 1993 and is now part of the newly formed RPR division, RPR Gencell. Through RPR Gencell, AIS has access to a network of 14 commercial, academic and other institutions in the biotechnology field. AIS products are now in human clinical trials for bone marrow transplantation and the treatment of AIDS and cancer.

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                       Applied Immune Sciences Inc.
                    Condensed Statement of Operations
                 (in thousands, except per share amounts)

                        Three months ended     Twelve months ended
                         Dec. 31,   Dec. 31,   Dec. 31,     Dec. 31,
                            1994       1993       1994         1993

Grant & research fees    $   257    $    --   $    600    $     --
Product sales                129        162        512         617
  Net revenues               386        162      1,112         617
Cost of product sales         62         71        253         217
Gross profit                 324         91        859         400

Operating expenses:
Research & development     6,064      6,494     21,830      24,962
Selling, general &
 administration            1,671      1,973      6,316       6,486
Special charge --
 RPR transaction             598        747      4,993       9,615
Total operating expenses   8,333      9,214     33,139      41,063
Loss from operations      (8,009)    (9,123)   (32,280)    (40,663)
Net interest income          221        366      1,154       1,640
Net loss                 $(7,788)   $(8,757)  $(31,126)   $(39,023)
Net loss per share       $ (0.68)   $ (0.76)  $  (2.71)   $  (3.69)
Shares used in
 calculation of net
 loss per share           11,482     11,475     11,479      10,565

                  Condensed Consolidated Balance Sheet
                            (in thousands)

Assets                                         Dec. 31,     Dec. 31,
                                                 1994         1993
Current assets:
 Cash, cash equivalents and
  short term investments                      $16,577      $44,421
 Inventories                                    1,305        1,716
 Other current assets                           1,295        1,159
   Total current assets                        19,177       47,296
Property and equipment, net                    15,701       17,501
Other assets                                    1,311        2,017
                                                -----        -----
                                              $36,189      $66,814

Liabilities and stockholders' equity

Current liabilities:
 Accounts payable and other
  accrued liabilities                         $ 3,708      $ 3,758
 Current portion of capital lease
  obligations                                   1,024        1,076
 Deferred revenue                               2,291          720
  Total current liabilities                     7,023        5,554

Capital lease obligations, net
 of current portion                                94        1,118
Stockholders' equity:
 Capital Stock                                165,997      165,941
 Accumulated deficit                         (136,925)    (105,799)
   Total stockholders' equity                  29,072       60,142
                                               ------       ------
                                              $36,189      $66,814

CONTACT: Applied Immune Sciences Inc.

Jackie Cossmon, 408/492-9200