Catalytica Announces Senior Executive Shifts.

MOUNTAIN VIEW, Calif.--(BW HealthWire)--Oct. 29, 1998--

James A. Cusumano Named New Chief Strategic Officer

for Catalytica and Catalytica Pharmaceuticals;

Gabriel R. Cipau Promoted to Chief Executive Officer, Catalytica

Pharmaceuticals; and John M. Hart Named Vice President, Human

Resources, Catalytica

Catalytica, Inc. (NASDAQ: CTAL) today announced that James A. Cusumano had been appointed to the newly created position of Chief Strategic Officer of Catalytica, Inc. as well as its subsidiary, Catalytica Pharmaceuticals, Inc. The position of Chief Executive Officer of Catalytica Pharmaceuticals, Inc., which Cusumano has held since 1994, will be assumed by Gabriel R. Cipau, currently President and Chief Operating Officer of the subsidiary. Cusumano remains Chairman of the Board of Directors of both the subsidiary and the parent.

In a separate action, Catalytica named John M. Hart as Vice President of Human Resources.

According to Ricardo B. Levy, President and Chief Executive Officer of Catalytica, Inc., "In making these changes, the Board of Directors is recognizing Jim Cusumano as the primary strategic driver of Catalytica's move into the Pharmaceutical market and its significant growth to date. Similarly, the Board believes that Catalytica currently has a unique opportunity to build upon its outsourcing business base and to expand its activities in the Healthcare sector. The appointment of Jim to Chief Strategic Officer is designed to enable Jim to focus his full attention on strategic expansion programs. The promotion of Gabe Cipau to CEO of Catalytica Pharmaceuticals reflects his able operation of this subsidiary as well as the significance of the contributions he has made since the Greenville facility was acquired. We believe that working together as a team, Jim and Gabe not only give us particular strength in operating the current business but also in managing its future growth."

Biographies

James A. Cusumano founded Catalytica, Inc. in 1974 with Ricardo Levy. Prior to that he was with Exxon Research and Engineering Company from 1967 - 1974, where he headed the main catalysis research effort of Exxon's Corporate Research Laboratory. Cusumano is an advisor to the Institute for International Education Fulbright Scholar Program and a Fellow of Churchill College, Cambridge University. He is a member of the Board of SOCMA, the Synthetic Organic Chemical Manufacturing Association. He has a Ph.D. and a B.A. in chemistry from Rutgers University.

Gabriel R. Cipau joined Catalytica Pharmaceuticals in 1997 from Copley Pharmaceutical, Inc. where he was President and Chief Executive Officer. Prior to that, Cipau served as President and Chief Executive Officer of Nippon Wellcome, and Executive Director of Wellcome plc, where he was a member of the Board and the Executive Committee. From 1970 - 1993, Cipau was with the Burroughs Wellcome Company in Research Triangle Park, N.C. where his last position was Senior Vice President of Production and Engineering which included responsibility for the operations of the Greenville, N. C. plant. Cipau has an M.B.A. from Duke University, an M.S. in Chemistry from East Carolina University, and both a B.S. and a Ph. D. in Chemical Engineering from Polytechnic Institute Timisoara in Hungary.

Hart Named Vice President, Human Resources

In a related announcement, Catalytica also named John M. Hart as Vice President, Human Resources. Hart recently joined Catalytica after serving as a consultant in human resources strategic planning, management and organization development to several major corporations. Prior to that, he was Senior Vice President Human Resources for USL Capital, Inc. of San Francisco, CA, the financial services company of Ford Motor Company, and between 1991-93, he held a similar position at U.S. F. & G. Corporation in Baltimore, MD, one of the largest financial service companies in the United States. Between 1984 -1991, Hart was Senior Vice President at Heller International of Chicago, IL. Hart has a B.S. in Management Science from Rensselaer Polytechnic Institute and an M.B.A. from Fairleigh Dickenson University.

Levy commented, "As Catalytica expands, we will be looking to Jack Hart to help us continue to build an organization which will attract talented and dedicated individuals. Clearly, his broad-based experience in both large and small organizations will provide Catalytica the insight with which to develop strategies and programs that are responsive to the needs of a diverse and growing work force."

Catalytica, Inc., through its subsidiaries, provides catalytic technologies and advanced products that improve manufacturing processes and solve environmental problems economically. The three subsidiaries are Catalytica Pharmaceuticals, Inc., which is a leading manufacturing partner to the pharmaceutical industry; Catalytica Combustion Systems, Inc., which produces XONON for the energy market; and Catalytica Advanced Technologies, Inc., which creates new catalytic technologies. Find Catalytica on the world wide web at www.catalytica-inc.com.

This news release contains forward-looking statements regarding Catalytica's future performance including Catalytica's ability to build upon its outsourcing business and expand its activities in the healthcare sector, Dr. Cipau's ability to manage Catalytica Pharmaceuticals future growth, Mr. Hart's ability to attract employees, and Catalytica's competitive position in its markets. Investors are encouraged to review Catalytica's Form 10-K for the year ended December 31, 1997 and form 10-Q for the period ended June 30, 1998, for a more complete discussion of factors that could affect Catalytica's future performance.