Biorelease reports fiscal 1995 first quarter results.

SALEM, N.H.--(BUSINESS WIRE)--Nov. 16, 1994--Biorelease Corp. (OTC BREL) reported results for the first quarter of fiscal 1995 which ended Sept. 30, 1994.

The company reported revenues of $51,905 for the quarter as compared to $14,701 for the same period last year.

R. Bruce Reeves, president and CEO reported that revenues for this recent quarter were almost equal to the total revenues previously reported since inception of the company and exceeded revenues of the most recent fiscal year by almost $9,000. Operating expenses have been reduced reflecting a recent restructuring whereby the company has reduced staff and focused exclusively on Erythrogen sales and distribution and activities dedicated to sustained drug release research based on the company's chondroitin sulfate patent position. Reeves stated, "Approximately half of this quarter's revenues were derived from first time sponsored work on chondroitin sulfate sustained release activities associated with an artificial blood application. We are hopeful these results will enhance our ability to bring new necessary investment into the company."

Biorelease Corp. is dedicated to marketing its proprietary cell culture additive Erythrogen and continuing the research and development of its patented sustained release technology based on chondroitin sulfate.

                        BIORELEASE CORP.
               Consolidated Statements of Operations
        For the Three Months Ended Sept. 30, 1994 and 1993


                          1994                   1993
                      (Unaudited)             (Unaudited)

Revenues               $51,905                 $14,701
Cost of Goods           (3,157)                 (4,082)
Gross Profit            48,748                  10,619

Operating Expenses
 Cell culture
   operations           (1,891)                (89,070)
 Research and
   development         (64,061)               (208,434)
 General and
   administrative     (106,300)               (288,715)

Loss from operations  (123,504)               (575,600)
Other income
 (expense), net         (4,918)                 15,416
Loss before taxes     (128,422)               (560,184)
(Provision) credit
 for taxes                   0                       0
Net loss              (128,422)               (560,184)
Weighted average
 shares              8,227,483               5,286,916
Net loss per share       (0.02)                  (0.11)

CONTACT: Biorelease

R. Bruce Reeves, 603/893-7300