Aprogenex reports 1995 second quarter results; company also announces shipments of AproProbe product for distribution in China, Taiwan and Hong Kong.

HOUSTON--(BUSINESS WIRE)--Aug. 15, 1995--Aprogenex Inc. (ASE:APG), a development-stage company focused on DNA probe-based diagnostic test systems, Tuesday announced the results of operations for the second quarter ended June 30, 1995, and provided an update on its operations and product timelines.

The company reported a loss of $1,438,027 (29 cents per share) for the quarter. The loss for the comparable quarter ended June 30, 1994, was $3,405,937 (72 cents per share). The year-to-date loss for the six months ended June 30, 1995, was $2,885,229 (58 cents per share), as compared to a loss of $4,897,015 ($1.04 per share) for the six months ended June 30, 1994.

"During the second quarter, the company introduced for research use the first two elements of its GenSite product," said Joel Bresser, Ph.D., president and CEO. "We believe these products, the AproProbe and AproProbe Plus assays, demonstrate to the research community the company's ability to analyze genetic information in fetal cells, and we expect interest from researchers around the world. Both products are available for sale in Europe through Zeneca Diagnostics and in China, Taiwan and Hong Kong through the company's Far East distributor.

"Development efforts on the remaining component of the GenSite test, the enrichment system, are expected to continue at least through the remainder of 1995, and initial sales of the full product outside the U.S., as well as any filings with the FDA for U.S. sales, are expected to proceed after the successful completion of development."

The financial statements for June 30, 1995, reflect the company's financing activities which have resulted in obtaining financial resources expected to fund operations into 1996.

The sale of Series A convertible preferred stock was closed with gross proceeds of $4.6 million. The 459,000 shares of preferred stock are convertible into between 835,000 and 2.3 million shares of common stock depending on the average market price of the common stock for the 30 trading days prior to Nov. 22, 1995. Warrants to purchase an additional 45,900 shares of preferred stock were issued to the placement agent for the sale.

The company has filed registration statements with the SEC seeking to register the resale of the common stock underlying the preferred stock and warrants sold as well as the 144,300 shares of common stock sold in a $650,000 private placement in May 1995, and 100,000 shares sold in 1994.

Aprogenex develops, manufactures and markets DNA probe-based test systems based on its proprietary RIGHTechnology which is broadly applicable to extensive markets in genetics, oncology, virology and microbiology. The company is currently developing GenSite, a prenatal genetic test using maternal blood, and two HIV diagnostic and staging tests, the Virafy and ViraFlow assays. -0-

                            APROGENEX INC.
                      (A Development-Stage Co.)
                         Results of Operations
                             (Unaudited)

                                             For the quarter ended
                                                    June 30,
                                               1995          1994

Revenues                                     $8,070           ---
Research and Development Expenses          (959,974)   (2,694,381)
General and Administrative Expenses        (499,642)     (761,445)
Other, Net                                   13,519        49,889
Net Loss                                $(1,438,027)  $(3,405,937)
Net Loss per Share                           $(0.29)       $(0.72)
Weighted Average Shares Outstanding       5,043,340     4,760,143

                                            For the six months ended
                                                    June 30,
                                               1995          1994

Revenues                                     $8,070           ---
Research and Development Expenses        (1,813,005)   (3,596,096)
General and Administrative Expenses      (1,088,628)   (1,414,545)
Other, Net                                    8,334       113,626
Net Loss                                 (2,885,229)   (4,897,015)
Net Loss per Share                           $(0.58)       $(1.04)
Weighted Average Shares Outstanding       4,993,863     4,697,863

                       Balance Sheet Highlights
                             (Unaudited)

                                                As of June 30,
                                                     1995

Cash and marketable securities                    $3,642,605
Current assets                                     3,837,313
Current liabilities                                  894,669
Stockholders' equity                               3,796,269
Shares of common stock issued and outstanding      5,123,854
Shares of Series A convertible preferred
  stock issued and outstanding                       459,000
Shares of common stock issued and outstanding,
  assuming conversion of preferred stock at
  initial conversion rate                          5,958,399

CONTACT: Aprogenex Inc., Houston

J. Donald Payne, 713/748-5114

or

Keatinge & Associates Inc.

Richard W. Keatinge, 619/625-2100