CELLPRO AND CORANGE DIFFER ON COLLABORATION TERMS.

SEATTLE--(BUSINESS WIRE)--March 31, 1995--CellPro Inc. announced today that it has received a communication from Corange International Ltd., the Bermuda-based parent company of Boehringer Mannheim and DuPuy Orthopedics, in which Corange has stated that it believes that the diagnostics collaboration agreement between the two parties is unenforceable and that the therapeutics collaboration agreement between them violates applicable European antitrust laws unless amended in accordance with the terms of the agreement.

Further, Corange has stated that, as a result of its belief in the unenforceability of the collaborative agreements, CellPro will be unable to satisfy the conditions for closing the $60 million investment scheduled for April 1995 under the equity agreement between the parties. CellPro disputes Corange's assertions, and intends to vigorously pursue this matter and to call upon Corange to perform all of its obligations, including its second equity investment.

In December 1993, the two companies entered into an equity agreement pursuant to which Corange committed to invest a total of $110 million in CellPro through the purchase of CellPro Common Stock. Under separate collaboration agreements, Corange also committed to make payments to CellPro that could total as much as $55 million in research and development funding and a further $45 million in milestone payments, in exchange for certain rights to therapeutic and diagnostic products being developed by CellPro. CellPro also received $10 million upon signing of these agreements.

In January 1994, Corange made its initial equity investment of $50 million in CellPro under the equity agreement by purchasing 1,160,362 newly issued shares of CellPro's Common Stock at $43.09 per share. The equity agreement generally provides that in April 1995, Corange will make a second equity investment of $60 million by purchasing newly issued shares of CellPro Common Stock at a price that will be determined according to a formula, which is expected to result in a price of $47.40 per share.

Since entering into this strategic alliance with CellPro, Corange has made significant changes in its management, apparently resulting in a reassessment of this strategic alliance. CellPro has informed Corange that it rejects Corange's assertions with respect to the agreements and that CellPro has performed all of its obligations to date, continues to stand ready to perform its obligations under the collaboration, and looks to Corange to do the same.

Richard D. Murdock, president and CEO of CellPro, stated, "There apparently has been a great deal of speculation in the financial community with respect to our relationship with Corange. Although we do not, as a matter of policy, address speculation and rumors, we thought it prudent to inform our stockholders of this development. We intend to pursue as required the remedies available to us under the agreements for Corange's failure to honor its promises in respect to research and development funding and milestone payments. In addition, should Corange dishonor its undertaking in respect of further equity investment when that performance is due, we intend to seek all remedies available under law."

Based in Bothell, Wash., CellPro Inc. is a biotechnology company specializing in the development, manufacturing and marketing of proprietary, continuous-flow cell-selection systems for use in a variety of therapeutic, diagnostic and research applications.

CONTACT: CellPro Inc.

Lee M. Parker, 206/485-7644