Catalytica Reports Fourth Quarter and Fiscal 1995 Results.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 31, 1996-- Catalytica, Inc. (NASDAQ:CTAL), today reported financial results for the fourth quarter of 1995.

The company reported revenues of $4.9 million and a net loss of $1.9 million ($0.10 per share), compared to revenues of $2.5 million and a net loss of $2.6 million ($0.17 per share) in the fourth quarter of 1994. For the year ended December 31, 1995, the company reported revenues of $13.6 million and a net loss of $8.7 million ($0.55 per share), compared to revenues of $12.2 million and a net loss of $9.1 million ($0.61 per share) last year.

Fourth quarter and fiscal 1995 revenues were higher than revenues in the comparable 1994 periods primarily as a result of sales of intermediates to pharmaceutical customers by the company's fine chemicals business.

Increased expenses in fiscal 1995 reflect the cost of sales of fine chemical products coupled with increased marketing and sales expenses, partially offset by reduced research activities. Last year's expenses also included a one-time charge of $0.5 million related to a restructuring of the company s operations as it moves from a research and development organization to a technology-based commercial business.

Catalytica's Chief Executive Officer, Ricardo B. Levy, stated: "We are very pleased with the progress Catalytica made in 1995, particularly our performance in the last quarter which showed a significant improvement over the same period in 1994. We continue to show quarter over quarter performance improvement in our bottom line while making progress in each of our businesses. The fine chemicals business increased their sales in 1995 by 52% over 1994, much of that being achieved in the fourth quarter.

"We sold over 130 tons of products to major pharmaceutical companies during 1995, introduced four new processes into our facility in the fourth quarter, and developed a number of new processes for additional products for a number of additional products, which we expect to manufacture sell in 1996."

In the fourth quarter, the company completed a public offering of 4 million shares of its common stock. The net proceeds of approximately $14.7 million are planned to be utilized by the company to expand its fine chemicals business and to continue the development of its XONON system for gas turbines.

Catalytica is developing catalytic processes and is manufacturing products that are designed to provide economic and environmental benefits by lowering manufacturing costs and reducing hazardous by-products. -0-

                            Catalytica, Inc.
                Consolidated Statements of Operations
              (in thousands, except per share amounts)

                        December 31,
                     Three Months Ended            Calendar Year
                      1995        1994           1995        1994
Revenues
 Product sales       $3,943      $1,714         $ 8,858   $ 5,800
 Research revenues      988         807           4,766     6,395
                     ------      ------         -------   -------
                     $4,931      $2,521         $13,624   $12,195

Costs and expenses    6,904       5,265          22,649    22,114
Operating loss       (1,973)     (2,744)         (9,025)   (9,919)
Interest, net           122         164             338       774
Net loss             (1,851)     (2,580)         (8,687)   (9,145)
Shares used in
 computing net
 loss per share      17,826      15,038           15,785   15,070
Net loss per share   $(0.10)     $(0.17)          $(0.55)  $(0.61)

                             Catalytica, Inc.
                  Condensed Consolidated Balance Sheet
                             (in thousands)

                              December 31, 1995   December 31, 1994
Assets:
Current assets                    $25,756              $16,586
 Property and equipment, net        5,383                5,449
 Other long-term assets               100                  151
                                  -------              -------
                                  $31,239              $22,186

Liabilities and Stockholders' Equity:

Current liabilities                $7,654               $4,713
Other long-term liabilities         1,556                1,694
Stockholders' equity               22,029               15,779
                                  -------              -------
                                  $31,239              $22,186

CONTACT: Catalytica

Lawrence W. Briscoe, 415/940-6370