CIMA LABS INC. REPORTS YEAR-END AND FOURTH-QUARTER 1994 FINANCIAL RESULTS.

MINNEAPOLIS--(BUSINESS WIRE)--February 13, 1995--CIMA LABS INC. (Nasdaq: CIMA) today announced financial results for 1994 and the fourth quarter ended December 31, 1994. For the year, CIMA LABS reported revenue of $2.6 million, expenses of $9.3 million and a net loss of $6.2 million, or $0.95 per share, compared with revenue of $2.2 million, expenses of $5.9 million and a net loss of $3.7 million, or $0.78 per share, for 1993. The increase in revenue reflects the achievement of product development and licensing milestones related to agreements for the OraSolv(R) technology with Pfizer Inc., Sterling Winthrop, Inc. and Glaxo Group Limited. As the Company continues to focus on the OraSolv(R) technology, revenue from agreements to manufacture other products is expected to decline. The increase in expenses represents the Company's efforts to focus on the development of its OraSolv(R) technology. In August 1994, CIMA completed its initial public offering of 2,050,000 shares of common stock at $9.00 per share, raising net proceeds of approximately $16,379,000. As of December 31, 1994, CIMA had cash, cash equivalents and short-term investments of $13.7 million.

The Company's financial results for the fourth quarter included revenue of $609,000, expenses of $2.83 million and a net loss of $2.0 million, or $0.27 per share. This compares with revenue of $536,000, expenses of $1.5 million and a net loss of $1.0 million for the same quarter in 1993.

"From an operating standpoint, the milestones achieved in 1994 have helped CIMA LABS with its transition from a development stage company to an operating company," commented Randall J. Wall, Chairman and Chief Executive Officer of CIMA LABS. "We are pleased that CIMA LABS' financial results for 1994 and the fourth quarter met analysts' expectations, and we look toward the future with confidence."

The funds raised during the initial public offering were applied toward the completion of CIMA's manufacturing facility and the purchase of manufacturing and packaging equipment and research and development equipment, in addition to being used for research and development projects, working capital and other general corporate purposes.

Other accomplishments during 1994 included the signing of three agreements with multinational pharmaceutical companies. Pfizer Inc. signed a license and supply agreement at the beginning of the fourth quarter for multiple over-the-counter pharmaceutical products utilizing the OraSolv(R) drug delivery technology. This agreement with Pfizer provides for licensing fees, milestone payments, royalties and manufacturing fees.

Glaxo Group Limited signed a license and development agreement which provides exclusive rights for Glaxo to market its leading product, Zantac(R), in a form employing CIMA's OraSolv(R) technology. This agreement provides for certain milestone payments and royalties to CIMA.

Also in 1994, CIMA signed a development and license option agreement with Sterling Winthrop Inc. to develop a series of analgesic and cold/cough/flu, allergy and sinus OraSolv(R) products. This agreement also provides for certain milestone payments and royalties to CIMA.

CIMA also completed its manufacturing facility in Eden Prairie, Minnesota, at the end of December 1994, for products which utilize its OraSolv(R) technology. The 75,000 square foot, leased facility currently has one production line with a capacity of 400 million tablets per year. This facility has been designed to accommodate up to six production lines for a capacity of 2.4 billion tablets per year as demand increases.

Mr. Wall continued, "With these fundamental accomplishments in place, CIMA has the solid foundation needed to proceed with its strategic objectives for 1995. CIMA now has the infrastructure to facilitate adding other marketing partners in the future."

CIMA is a drug delivery company that develops products based primarily upon its proprietary OraSolv(R) technology for marketing by multinational pharmaceutical companies. OraSolv(R) is a patented oral dosage form which incorporates microencapsulated drug ingredients into a tablet that dissolves quickly in the mouth without chewing or water and which effectively masks the taste of the medication. CIMA was founded in 1987 and has been publicly traded since July 1994. CIMA has a license and supply agreement with Pfizer Inc. for multiple OTC pharmaceutical products using OraSolv(R); a license and development agreement with Glaxo Group Limited for an OraSolv(R) version of Zantac(R), the world's largest selling drug; a development and license option agreement with Sterling Winthrop, Inc./SmithKline Beecham, plc/Bayer A.G. for analgesic and cold/cough/flu, allergy and sinus OraSolv(R) products; and a license and supply agreement with Merck & Co., Inc. for the development of Pepcid(R) AC to be marketed internationally utilizing CIMA's secondary technology, AutoLution(R). During the terms of CIMA's collaborative agreements with its corporate partners, ultimate product marketing and commercialization decisions are not within CIMA's control. -0-

CIMA LABS INC.
CONDENSED STATEMENTS OF OPERATIONS
(In thousands, except share and per share amounts)

                              Three Months Ended  Twelve Months Ended
                            Dec. 31,   Dec. 31,   Dec. 31,   Dec. 31,
                              1994      1993        1994       1993

Revenue                      $ 609     $ 536       $2,618     $2,225
Cost of goods sold           1,046       821        3,504      2,844
Research & development         667       631        2,845      1,857
General & administrative     1,120        73        2,972      1,208
Loss from operations        (2,224)     (989)      (6,703)    (3,684)
Interest income/other          200       (14)         512         87
Interest expense               ---       (14)         (21)       (83)

Net loss                   $(2,024)  $(1,017)     $(6,212)   $(3,680)
Net loss per share         $  (.27)  $  (.22)     $  (.95)    $ (.78)

Weighted average number
  of shares                  7,506     4,727        6,505      4,727

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CIMA LABS INC.
CONDENSED BALANCE SHEETS
(In thousands)                        Dec. 31, 1994    Dec. 31, 1993
                                       (Unaudited)       (Audited)
Assets
Cash and Investments                  $ 13,655         $  1,178
    Other current assets                 1,070              642
    Furniture, equipment and
      leasehold improvements             9,842            2,938
    Other assets                           555              169
Total assets                          $ 25,122         $  4,927

Liabilities and Stockholders' Equity:

    Current liabilities               $  2,568         $    833
    Long-term liabilities                  ---              ---
    Stockholders' equity                22,554            4,094

Total liabilities and
    stockholders' equity              $ 25,122         $  4,927

CONTACT: CIMA LABS INC. Dewe Rogerson Inc.

Randall J. Wall Kate de Santis

Chairman of the Board 212/688-6840

and Chief Executive Officer

612/947-8700