Catalytica Pharmaceuticals Announces Manufacturing Agreement With Amgen.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Nov. 18, 1997-- Catalytica Pharmaceuticals, Inc., a subsidiary of Catalytica, Inc. (NASDAQ:CTAL), today announced that it has signed a contract to manufacture sterile pharmaceutical products for Amgen Inc. with anticipated revenues to Catalytica Pharmaceuticals of $36 million over five years, assuming appropriate FDA approvals.

The Amgen products will be manufactured at Catalytica Pharmaceutical's North Carolina sterile facility. The sterile facility, which opened in 1995 is among the best equipped in the world, and has an excellent FDA regulatory record. Product manufacturing is expected to begin by the end of the year.

James A. Cusumano, Chairman of Catalytica and Chief Executive Officer of Catalytica Pharmaceuticals, said, "The addition of the Greenville facility is off to a great start. This order confirms that our customers will benefit from the products and services offered by our manufacturing capabilities. The combination of Amgen and its innovative biopharmaceutical products and our worldclass sterile manufacturing is a great partnership."

Dennis M. Fenton, Senior Vice President of Operations for Amgen, commented, "Amgen looks forward to working with Catalytica Pharmaceuticals in their new facility. This contract demonstrates Amgen's interest in a long-term manufacturing partnership." Amgen, the world's largest independent biotechnology company with more than $2 billion in revenues, discovers, develops, manufactures, and markets human therapeutics based on advances in cellular and molecular biology.

Catalytica acquired the Greenville, North Carolina plant on July 31, 1997 from Glaxo Wellcome Inc., with a five-year, $800 million outsourcing agreement to continue manufacturing certain Glaxo Wellcome products. The available plant capacity not committed under the Glaxo Wellcome agreement is available for outsourcing to other Catalytica customers. Amgen is the second major pharmaceutical firm to become a customer of Catalytica's Greenville facility. Pfizer Inc. committed to manufacturing a key intermediate for a significant drug in its pipeline in July.

Catalytica, Inc., through its subsidiaries, develops and produces advanced products that use proprietary catalytic technologies to lower manufacturing costs and reduce hazardous byproducts. Catalytica Pharmaceuticals, Inc., a majority-owned subsidiary, provides process development and manufacturing for a broad range of pharmaceutical products. Catalytica Combustion Systems, Inc., a wholly-owned subsidiary, develops advanced systems for the elimination of emissions generated by gas turbines. -0-

This news release contains forward-looking statements regarding Catalytica's future operation of the facility, Catalytica's competitive position in such market, the ability to develop cost-effective processes and the Company's ability to obtain new customers. These statements involve risks and uncertainty, including without limitation, the ability to operate the facility efficiently, the ability to perform timely and cost-effectively under the Supply Agreement with Glaxo Wellcome, the ability to obtain, and the timing and terms of contracts with new customers for available capacity, product development delays, changes in demand for Catalytica's products and the Company's competitive position, changes in environmental regulations, the impact of FDA and other regulations on fine chemical manufacturing, and competition from pharmaceutical companies that produce their own products and from other fine chemical manufacturers. Investors are encouraged to review Catalytica's Form 10-K/A for the year ended December 31, 1996 (Part II, Item 7) and Form 10-Q for the period ended June 30, 1997, and the Proxy Statement dated July 16, 1997, for a more complete discussion of factors that could affect Catalytica's future performance.

Find Catalytica on the World Wide Web at www.catalytica-inc.com

CONTACT: Catalytica, Inc.

Lloyd Baylis, 650/960-3000

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