Argonaut Technologies Updates Business Outlook for Second Quarter 2001.

Business Editors/High-Tech Writers

SAN CARLOS, Calif.--(BUSINESS WIRE)--July 5, 2001

Argonaut Technologies, Inc. (Nasdaq:AGNT) will hold a conference call at 2:00 p.m. Pacific/5:00 p.m. Eastern today, Thursday, July 5, 2001, to discuss its current business outlook for the second quarter of 2001.

For the second quarter ended June 30, 2001, Argonaut expects net sales to be between $3.0 million and $3.2 million and the net loss to be between $4.1 million and $4.4 million.

"We are experiencing a challenging business environment characterized by delayed or postponed purchasing decisions and reduced capital expenditure budgets as a result of uncertain economic conditions," stated David P. Binkley, Ph.D., Argonaut's chairman and chief executive officer. "Despite the current weakness in net sales, our customers continue to tell us that our instruments are improving their chemistry processes and accelerating their identification of new, lead drug candidates. We, therefore, remain optimistic about our long term financial prospects."

Argonaut will be hosting a conference call at 2:00 p.m. PDT, today, July 5, 2001, to discuss Argonaut's outlook. Interested parties can access this call by dialing 800-837-5682 and giving the following pass code 4356125. Those wishing to listen to the call can access it via the Internet from www.StreetFusion.com. Alternatively, investors may link to the call from the Investor Relations section of our website at www.argotech.com. A 24-hour replay will be available for seven days after this call at www.argotech.com or by calling 888-843-8996 and giving the following pass code: 4356125.

Argonaut Technologies

Argonaut Technologies, Inc. is a pioneer in the development of innovative products that speed and simplify how chemists discover and test new chemical entities. Our products enable chemists to increase their productivity, reduce their operating costs through automation and process simplification, achieve faster time-to-market for new products, and cost-effectively explore the increasing number of drug targets available for drug development. We provide solutions that are used in over 825 pharmaceutical, chemical and academic laboratories worldwide. Our instruments, software and consumables for parallel synthesis enable chemists to perform multiple experiments under a variety of conditions in a fraction of the time and cost of traditional methods.

Forward Looking Statements

Statements included in this press release that are not historical in nature may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of such forward-looking statements include statements regarding Argonaut's financial outlook for the 2001 fiscal year, in particular revenues and expenses, revenue growth, expected demand for Argonaut instruments and consumables and the Company's anticipated cash usage and investments. Any such forward-looking statements involve risks and uncertainties and reflect Argonaut's judgment as of the date of this release. Actual events or results may differ from Argonaut's expectations as a result of risks and uncertainties, including such factors, among others, as the continued impact of economic weakness and changes in purchasing patterns in the pharmaceutical and chemical industries, the impact of competitive products and pricing, the market acceptance of new and existing products, the ability to raise capital, the mix between domestic and international sales, manufacturing and cost of Argonaut's products, dependence on collaborative partners, the ability to achieve sales and revenue objectives, the ability to enter into new distribution agreements, and fluctuations in the stock market. As a result of these and other factors, Argonaut expects to experience significant fluctuations in operating results, and there can be no assurance that Argonaut will become or remain consistently profitable in the future, or that its future results will meet expectations. These and other risk factors are discussed in Argonaut's "Management's Discussion and Analysis of Financial Condition and Results of Operations" set forth in Argonaut's Annual Report on Form 10K for the year ended December 31, 2000 filed on April 2, 2001 and on Form 10Q for the quarter ended March 31, 2001 filed on May 14, 2001 with the Securities and Exchange Commission. Argonaut disclaims any intent or obligation to update these forward-looking statements. The Company claims the protection of the Safe Harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.