Catalytica to Produce Worldwide Supply of Rhone-Poulenc Rorer's Synercid IV.

MOUNTAIN VIEW, Calif.--(BW HealthWire)--Oct. 5, 1999--

Catalytica Pharmaceuticals, Inc., a subsidiary of Catalytica, Inc. (Nasdaq:CTAL), announced today that it will produce the worldwide supply of Synercid(R)IV for Rhone-Poulenc Rorer (NYSE: RPR).

"RPR's choice of Catalytica for the manufacture of Synercid underscores our uncompromising commitment to quality and regulatory expertise. These competitive advantages have enabled us to attract a growing number of leading firms with strategically important products," stated Dr. Gabriel Cipau, President and CEO of Catalytica Pharmaceuticals. "We also know that time to market is critical to our customers. We have been working closely with RPR under a development agreement for the past several months to qualify our sterile facility for the production of Synercid in the United States and Europe."

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 40 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., through its four subsidiaries, applies its proprietary technologies to improve manufacturing and solve environmental problems. Catalytica Pharmaceuticals, Inc., and Wyckoff, Inc., a division of Catalytica Pharmaceuticals, provide drug development and manufacturing products and services to the pharmaceutical industry; Catalytica Combustion Systems, Inc., produces XONON, a catalytic product 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. Find Catalytica on the World Wide Web at http://www.catalytica-inc.com.

This news release contains forward-looking statements regarding Catalytica's future manufacturing of RPR's Synercid product at the Greenville, North Carolina facility, the amount and timing of additional revenues, if any, under the RPR Agreement, the ability to market the Company's manufacturing and other services to current and prospective clients, the amount and timing of additional revenues, if any, from other customers, the ability to transition new customers and business into the Greenville facility, and Catalytica's competitive position in its markets. Actual results could differ and such differences could be material. These statements involve risks and uncertainties, including without limitation, the ability to operate the manufacturing and development facilities efficiently, the ability to perform cost effectively and in a timely manner, product development delays, changes in the company's competitive position, and the impact of FDA, MCA, 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. Investors are encouraged to review Catalytica's Form 10K for the year ending December 31, 1998, Form 10Qs for the period ending March 30, 1998, and June 30, 1999, and Form S4 dated August 24, 1999, for a discussion of additional factors that could affect Catalytica's future performance.