Catalytica Appoints Craig Kitchen as New President and CEO of Catalytica Combustion Systems.

Business Editors

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--July 12, 2000

Catalytica, Inc. (Nasdaq:CTAL) announced today that Craig N. Kitchen has joined Catalytica Combustion Systems as its new president and CEO. Dennis Orwig, former president and CEO, will continue with the Company as executive consultant to the board.

Mr. Kitchen's extensive combustion systems industry experience includes substantial P&L responsibility in several businesses that included management of product design, manufacturing, sales, marketing, customer service, and turbine repairs. He was a senior executive at AlliedSignal and Stolper-Fabralloy, and most recently served as corporate vice president overseeing the aerospace companies of the Triumph Group, a manufacturer of major airframe structural and engine aircraft components for Boeing, Airbus, GE, Rolls Royce, and Honeywell. He was a partner at Stolper-Fabralloy, a supplier of combustors for aerospace and industrial gas turbines, and led the business development efforts for new customers such as GE Aircraft Engines, Rolls Royce, Allison Engines, and Solar Gas Turbines. His 17 years at AlliedSignal included positions ranging from program manager of turboprop programs to vice president and enterprise manager of airline propulsion engines and senior vice president of light helicopter turbine engines. Kitchen holds a B.S.M.E. from the U.S. Air Force Academy and an MBA from the University of Northern Colorado.

"We believe that Craig is an outstanding match for our needs in the Combustion Systems business," stated Ricardo Levy, president and CEO of Catalytica, Inc. "As we move the Xonon Cool Combustion(TM) technology into the market, Craig's industry experience, relationships, and proven leadership skills, as well as his extensive and direct management of gas turbine businesses, will help drive Xonon's commercialization program."

Dr. Levy continued, "I would also like to take this opportunity to thank Dennis Orwig for his dedication and success in moving Xonon through its development path over the last four years. I am pleased that he will continue to assist the Company through his role as an executive consultant to the board."

Catalytica, Inc. (www.catalytica-inc.com) 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(TM) technology enables gas turbines to produce essentially pollution-free power; Catalytica Advanced Technologies serves as the incubator for new catalytic technologies for industrial applications.

This news release contains forward-looking statements regarding the Catalytica Combustion Systems business, its market position and the Company's intention to commercialize Xonon Cool Combustion, the ability of Mr. Kitchen to enhance efforts to commercialize Xonon. Actual results may differ from these statements and such differences may be material. These statements involve risks and uncertainties, including without limitation, changes in the Company's competitive position, the ability to perform cost effectively and in a timely manner, the timing and extent of customer demand for products, the ability to operate the manufacturing facility for the commercial production of products, product development delays, and the ability of Mr. Kitchen to translate management expertise to Catalytica Combustion Systems' products and technology. Catalytica 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 incurrence of unanticipated events. Investors are encouraged to review Catalytica's Form 10K for the year ending December 31, 1999, and Form 10Q for the period ending March 31, 2000, filed with the Securities and Exchange Commission for a discussion of additional factors that could affect Catalytica's future performance.

Editors' Note: Xonon and Cool Combustion are trademarks of Catalytica.