Carrington Laboratories Inc. reports yearly records in sales and profits.

IRVING, Texas--(BUSINESS WIRE)--Jan. 17, 1995--Carrington Laboratories, Inc., (AMEX:CRN) today announced its results of operations for the fiscal year ended Nov. 30, 1994. Revenues were $25,430,000 and net income was $1,421,000 or $.18 per share compared with revenues of $21,184,000 and net income of $805,000 or $.09 for the previous year.

Total sales grew 20 percent over 1993. Sales growth for the company's wound and skin care line was 16 percent over 1993. Sales growth of consumer products, including bulk Manapol(TM) sales, was 393 percent over 1993. Research and development expenditures were $5,334,000 as compared to $5,397,000 last year.

For the fiscal quarter ended Nov. 30, 1994 revenues were $6,743,000 and net income was $223,000 or $.03 per share compared with revenues of $6,168,000 and net income of $386,000 or $.05 per share for the same quarter in 1993. During the quarter, total revenues for the company increased 9 percent over the same period for 1993. Sales of consumer products, including bulk Manapol(TM) sales, increased 1,043 percent over the fourth quarter of 1993. Research and development expenditures were $1,313,000 as compared to $1,521,000 for the same period in 1993.

Commenting on the impressive improvement in net income for the year, Karl H. Meister, president and CEO, said, "These figures demonstrate the reestablished growth in sales in our wound care line and new markets in our consumer product line. These trends have allowed us to improve our profitability significantly while aggressively continuing our investment in research and development in complex carbohydrates."

Carrington Laboratories, Inc., is an emerging research-based pharmaceutical company engaged in developing complex carbohydrate-based therapeutics and in manufacturing and marketing products for the management of wounds.

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                      CARRINGTON LABORATORIES, INC.
                         Financial Highlights

                                     For the Quarter Ended November 30
                                     ---------------------------------

                                          1994                1993
                                          ----                ----

   Net sales                        $  6,743,000        $  6,168,000

   Net income                            223,000             386,000

   Net income per share                      .03                 .05

                                     For the Year Ended November 30
                                     ------------------------------

                                          1994                1993
                                          ----                ----

   Net sales                        $ 25,430,000        $ 21,184,000

   Net income                          1,421,000             805,000

   Net income per share                      .18                 .09

CONTACT: Carrington Laboratories Inc., Irving

(Media) Jim Blackmore, 214/988-3736 or

(Investor) Chris Record, 214/518-1300