Catalytica Announces the Creation of Catalytica Novotec, Inc.

Business Editors

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--June 20, 2000

Catalytica, Inc. (Nasdaq:CTAL), announced today the creation of Catalytica NovoTec, Inc., a newly incorporated subsidiary that previously operated as a development group within Catalytica Advanced Technologies, Inc.

Catalytica NovoTec was formed to rapidly improve chemical and petrochemical manufacturing processes using scalable techniques and high throughput tools for the discovery and development of new catalysts. Catalytica NovoTec will use leading edge technologies including molecular modeling, automation, robotics, microreactors and informatics in this process. The company is developing a powerful proprietary system, known as the Catalyst Development Engine(TM), to rapidly identify optimal catalysts which will procure significant economic benefits in the manufacturing processes of large volume chemical products and intermediates.

As part of the launch of Catalytica NovoTec, Inc., Don Garaventi has been named as its president and CEO. Garaventi first joined Catalytica Advanced Technologies, Inc. in January 2000 as business manager for Catalytica NovoTec. Prior to joining Catalytica, Garaventi spent the majority of his career at Rohm & Haas where, as vice president and business group director, he led the Polymers, Resins and Monomers business unit. Following his retirement from Rohm & Haas, he acted as president of a start-up biotech company, Diversa Corp. Garaventi holds a B.S. in chemical engineering from Lehigh University.

Norman Smith, President and CEO of Catalytica Advanced Technologies, Inc. commented, "We are pleased to have someone with Don's wealth of industry experience and knowledge head up Catalytica NovoTec. We have spent the past year building a strong team and targeting the best market opportunities for this new entity. We believe that combining the available high throughput methods of the pharmaceutical industry and emerging experimental and computational techniques with our 26-year experience in catalysis and chemical manufacturing processes will yield rapid results for the chemical and petrochemical industries. Annual global sales in this market exceed $400 billion. The major cost component embedded in these sales is the manufacturing cost of the chemical products themselves and of their associated raw materials and intermediates. Even small improvements in the manufacturing processes or in the use of alternative feedstocks could generate annual savings for each customer in the tens of millions of dollars. We believe that our technology will enable our customers to rapidly discover more economical, cleaner or faster methods to produce their key products."

Don Garaventi, President and CEO of Catalytica NovoTec, Inc. stated, "The ability to predict how catalysts perform in manufacturing processes remains a formidable challenge to utilizing new high throughput technologies. Our Catalyst Development Engine(TM), which integrates and focuses these new technologies on a customer's actual manufacturing process and plant conditions, enables the rapid discovery and development of new catalysts and manufacturing processes with significantly improved scale-up capabilities."

Catalytica NovoTec is marketing its services to a number of large global companies that manufacture a range of chemical and petrochemical products and intermediates. Catalytica NovoTec will work closely with its customers to improve manufacturing processes thereby enabling them to achieve potentially large economic benefits.

Activities during part of 1999 related to Catalytica NovoTec's business were conducted through Aperion, a joint venture between CombiChem and Catalytica Advanced Technologies which was dissolved following the purchase of CombiChem by DuPont.

Catalytica, Inc. finds new pathways to improve processes -- reducing time, waste and costs. It operates through three subsidiaries: Catalytica Pharmaceuticals, Catalytica Combustion Systems, and Catalytica Advanced Technologies. Catalytica Pharmaceuticals applies innovative and patented catalytic technologies and other chemical processes to improve the steps for manufacturing pharmaceuticals and finds better and more efficient ways to produce products in commercial scale quantities. Catalytica Combustion Systems' unique Xonon Cool Combustion technology enables gas turbines to produce essentially pollution-free power. Catalytica Advanced Technologies serves as the incubator for new catalytic technologies for industrial applications. Catalytica employs over 1600 people. Find Catalytica on the World Wide Web at http://www.catalytica-inc.com.

This news release contains forward-looking statements regarding Catalytica's and Catalytica NovoTec's future performance and competitive positions in their markets. Such forward-looking statements include discovery and development of sophisticated and proprietary technologies by Catalytica NovoTec, prospects for Catalytica NovoTec's business, the market demand for its products, the benefits of combining technologies to yield better methods to produce materials, the considerable time and cost savings that may occur as a result of our work, as well as our future ability to apply innovative and patented catalytic technologies and find better ways to improve manufacturing processes. Actual results may differ and such differences may be material from those anticipated in such forward-looking statements. These statements involve risks and uncertainties, including without limitation the ability of Catalytica NovoTec to fully develop its technologies and sell its services to customers, the ability to save cost and time in the manufacturing process, the impact of market demand, changes in the Companies' competitive positions, and changes in the chemical and petrochemical industries. Readers are cautioned not to place undo reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the incidence of unanticipated events. Investors are encouraged to review Catalytica's Form 10K for the year ending December 31, 1999, and Form 10Q for the quarter ending March 31, 2000, filed with the Securities and Exchange Commission for additional factors that could affect Catalytica's future performance.