Cell Pathways Receives $3 Million for Research Facility Expansion.

HORSHAM, Pa.--(BW HealthWire)--July 1, 1998--Cell Pathways, Inc. (CPI) today announced that it has completed a transaction with Alexandria Real Estate Equities, Inc. in which Alexandria has purchased CPI's 40,000 square foot corporate headquarters and newly completed research facility from third-party owners.

CPI has entered into a long-term lease with Alexandria and received a one -time payment of $3 million in reimbursement for the build-out and expansion of CPI's facility. CPI has completed the build-out of 25,000 sq. ft. of space including 15,000 sq. ft. of laboratories and research facilities.

"This transaction allows us to bring key research efforts in house and to consolidate our company's activities in Pennsylvania," said Robert J. Towarnicki, president and chief executive officer of CPI. "In addition, it gives CPI an additional $3 million today to fund the continued clinical development of our lead compound, FGN-1(TM) exisulind, as well as advance the preclinical development ofother compounds in our product pipeline."

CPI, which has also maintained offices in Aurora, Colo., will close its Aurora facility in July and complete the consolidation of its operations in Horsham. Additionally, certain research that was previously outsourced will now be developed in the new facility under the direction of Rifat Pamukcu, M.D., the company's chief scientific officer and senior vice president, research and development.

"CPI was founded in 1990 as a virtual company with the majority of its research activities outsourced to academic research laboratories and institutions throughout the United States," commented Dr. Pamukcu. "As we have gained resources over the last few years, we have brought critical research activities in-house, under our own control, and are now completing that transition. This consolidation of research efforts has considerably enhanced our productivity and ability to advance important research in the most expeditious manner."

Cell Pathways, Inc. is a pharmaceutical company focused on the development and commercialization of products to prevent and treat cancer. The company is currently conducting or is planning to initiate clinical trials of its lead compound, FGN-1(TM) exisulind in seven indications including adenomatous polyposis coli, sporadic adenomatous colonic polyps, prevention of prostate and breast cancer recurrence, lung cancer, Barrett's esophagus, and cervical dysplasia.

For more information on Cell Pathways, please visit the company's website at www.cellpathways.com.

    CONTACT: Cell Pathways, Inc.
              Robert J. Towarnicki, 215/706-3800
                    or
              J. Kureczka Associates
              Joan Kureczka/Jesse Fisher, 415/821-2413