Catalytica Pharmaceuticals Corrects and Replaces News Release, BW0474 from Jan. 5, CA-CATALYTICA-PHARM.

Business Editors

NOTE: The following news release replaces and corrects the previous Catalytica Pharmaceuticals news release which ran Wednesday on Business Wire, BW0474 (CA-CATALYTICA-PHARM).

MOUNTAIN VIEW, Calif.--(BW HealthWire)--Jan. 6, 2000

Catalytica Pharmaceuticals Names

Tom Speace Senior Vice President

of Strategic Partnering and Business Development

Catalytica Pharmaceuticals, Inc., a subsidiary of Catalytica, Inc. (Nasdaq:CTAL), announced today that Tom Speace has joined Catalytica Pharmaceuticals, Inc. as senior vice president of strategic partnering and business development. He will be responsible for development and implementation of Catalytica Pharmaceuticals' strategic business programs, including major marketing and partnering initiatives with pharmaceutical and biotechnology companies and the acquisition of key technologies to further expand Catalytica's capabilities as a full spectrum service provider to the pharmaceutical industry.

Mr. Speace joins Catalytica Pharmaceuticals with over 20 years of broad-based pharmaceutical industry experience. Previously, he spent eight years at GensiaSicor, Inc., most recently as vice president of both corporate development and international sales and marketing. Mr. Speace also held management, finance, administrative, marketing and business development positions at Kendall McGaw Pharmaceuticals and Elkins-Sinn, Inc., a subsidiary of A. H. Robins. Mr. Speace holds a B.A. in economics from The Wharton School at the University of Pennsylvania and an M.B.A. from St. Joseph's University.

"Tom brings to Catalytica Pharmaceuticals a wealth of knowledge and experience in the pharmaceutical industry," stated Dr. Gabriel Cipau, president and CEO of Catalytica Pharmaceuticals. "He is a resourceful, strategic thinker with extensive experience in pharmaceutical sales and marketing. His knowledge of the industry coupled with his background in product sourcing, licensing, and strategic alliances will enable us to expand our partnerships with pharmaceutical and biotech customers and further our goal of being the most valued supplier for a wide variety of services to the industry."

Catalytica Pharmaceuticals, Inc., a subsidiary of Catalytica, Inc., provides the pharmaceutical and biotech industries with comprehensive skills and demonstrated commercial experience in a broad spectrum of areas extending from process development through drug development, formulation, manufacturing and packaging. Since the acquisition of the Greenville Facility from Glaxo Wellcome in 1997, Catalytica has entered into over 45 new agreements for the development and manufacture of products for various pharmaceutical and biotech companies. In anticipation of additional business, it has expanded its chemical manufacturing facility and is currently expanding its sterile facility. It is the largest independent, fully integrated drug development and manufacturing supplier in the world.

Catalytica, Inc. builds businesses in high growth industries where the Company's technologies optimize manufacturing and solve environmental problems. Catalytica Pharmaceuticals, Inc. provides drug development and manufacturing products and services to the pharmaceutical industry; Catalytica Combustion Systems, Inc. produces XONON, a catalytic system that permits essentially pollution free combustion for the energy market; and Catalytica Advanced Technologies, Inc. serves as the incubator for new catalytic technologies for industrial applications. Catalytica employs over 1600 people and had 1998 revenues of $406 million. Find Catalytica on the World Wide Web at http://www.catalytica-inc.com.

This news release contains forward-looking statements regarding the future business of Catalytica Pharmaceuticals, the ability to obtain new business, the success of recently announced agreements and contracts, and of ongoing development contracts, the ability to market the Company's development, manufacturing and other services to current and prospective clients, and Catalytica's competitive position in its markets. Actual results may differ from these statements and such differences may be material. These statements involve risks and uncertainties, including without limitation, the ability to operate the development, manufacturing, and packaging facilities efficiently, the ability to perform cost effectively and in a timely manner, the potential for product development delays, changes in the Company's competitive position, and the impact of FDA and other regulations on pharmaceutical and biotech manufacturing. 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, 1998, Form 10Qs for the periods ending March 31, 1999, June 30, 1999, and September 30, 1999, and Form S4/A dated August 19, 1999, for a discussion of additional factors that could affect Catalytica's future performance.