Cellular Products reports third quarter ended Sept. 30, 1994 results and decrease in employment.

BUFFALO, N.Y.--(BUSINESS WIRE)--Nov. 7, 1994--Cellular Products Inc. (OTC:CELP), reports that the net loss for the quarter ended Sept. 30, 1994, decreased to $82,880, or less than 1 cent per share, as compared with a net loss of $346,924 or 2 cents per share for the corresponding quarter of 1993, representing a decrease in net loss of 76%.

The company's total revenues for the quarter ended Sept. 30, 1994 were $660,430 as compared with total revenue of $814,524 for the corresponding quarter of 1993. Product sales for the quarter ended Sept. 30, 1994 decreased to $476,564 from $783,050 for the corresponding quarter of 1993. The decrease in product sales was primarily the result of discontinued shipments of the company's RETRO-TEK ELISA test kits to Genetic Systems Corp. Sales of the company's Core Product group increased by 11% to $476,564 from $429,553 as compared to the corresponding quarter ended 1993.

The company's total revenues for the nine months ended Sept. 30, 1994 were $2,016,939 as compared with total revenue of $2,024,938 for the nine months ended Sept. 30, 1993. Product sales for the nine month period ended Sept. 30, 1994 decreased to $1,447,660 from $1,942,917 for the corresponding nine month period of 1993. Research and development income increased $152,392 for the quarter ended Sept. 30, 1994 and $487,258 for the nine month period ended Sept. 30, 1994 as compared with the corresponding quarter and nine month period ended 1993.

The company announced today that it has eliminated 11 positions to assure the ability of the company to continue to operate in view of its poor cash position. Jeffrey N. Meshulam, president, stated that in spite of continued decreases in losses, the company is still experiencing severe cash flow problems resulting from losses incurred over the past 18 months. Since taking over as president in late June of 1994 the company has reversed the trend of increasing losses, but more cost-cutting was necessary to bring costs into line with revenue. Meshulam stated that in addition to staff reductions, the company is eliminating poor margin products and increasing marketing efforts. The company will continue to concentrate its efforts on developing, producing and marketing higher margin products.

At Sept. 30, 1994, the company had a working capital balance of $114,000 as compared with a working capital balance of $112,000, as of June 30, 1993. Recurring net losses have caused a decrease in the company's liquidity, which if not reversed, will require the company to reduce or terminate all or part of its operations. The company is attemppting to continue to improve sales and control operating costs to maintain or increase its working capital. The company is also seeking additional sources of funds to improve its liquidity and working capital.

Cellular Products is a biotechnology company focused on developing, manufacturing, and marketing innovative diagnostic and research products for AIDS and other infectious diseases. -0-

                  Results for the Third Quarter
           and Nine Month Period Ended Sept. 30, 1994

                Third Quarter Ended Sept. 30, 1994

                             1994                1993

Revenues:                    $660,430            $814,524
Net Income/(Loss):           $(82,880)          $(346,924)
Net Income per share:            (.00)               (.02)
Weighted average number
 of common shares
 outstanding:               20,046,816         18,046,816

                      Nine Month Period Ended Sept. 30,

                             1994                1993

Revenues:                   $2,016,939           $2,024,938
Net Income/(Loss):           $(318,016)           $(920,210)
Net Income per share:            (.02)                (.05)
Weighted average number
 of common shares
 outstanding:                20,046,816          18,046,816

CONTACT: Cellular Products Inc.

Jeffrey N. Meshulam, 716/882-0920