ChemTrak Inc. announces quarterly results and completion of repositioning.

SUNNYVALE, Calif.--(BUSINESS WIRE)--Oct. 19, 1995--ChemTrak Inc. (NASDAQ:CMTR), the designer and manufacturer of home diagnostic testing systems, today announced third quarter revenues of $486,000, including product sales of $271,000, yielding a quarterly net loss of $1,241,000 or $0.13 loss per share.

The quarterly results compared with a net loss of $184,000, or $0.02 loss per share on total revenues of $2,925,000 for the 1994 third quarter. Third quarter 1995 results included the receipt of a milestone payment totaling $215,000 from Direct Access Diagnostics, a Johnson & Johnson company.

The 1995 cholesterol test product sales mainly stem from ChemTrak U.S. direct sales, U.S. physician office sales and international retail sales and do not reflect Johnson & Johnson marketing.

Total revenues for the first nine months of fiscal 1995 were $3,060,000, including product sales of $1,935,000, resulting in a net loss of $4,723,000, or $0.49 loss per share.

This result compared with revenues of $8,133,000, including product sales of $5,863,000, for the nine months of fiscal 1994, which resulted in a net loss of $157,000, or $0.02 loss per share in the comparable 1994 period.

The company's 1995 nine-month results included a $1.5 million charge, or $0.16 per share, for in-process research and development associated with ChemTrak's acquisition of Coonan Clinical Laboratories Inc.

According to company Chief Executive Officer Dr. Prithipal Singh, "In addition to completing a year-long project, repositioning the company as a fully diversified personal diagnostics firm, ChemTrak has been preparing for the launch of its newest products: a home HIV testing system, for which FDA approval is expected in 1996, to be followed by an innovative one-step blood test which screens for Helicobacter pylori (H.pylori), the bacteria now associated with ulcers and stomach cancer.

"The test has now entered U.S. clinical trials at four sites, and a 510K submission is expected to be filed with the FDA this calendar year." The test is licensed in the United States to Astra/Merck Pharmaceuticals which markets a leading therapeutic, Prilosec, for treatment of ulcers.

ChemTrak develops and manufactures reliable and easy-to-use home testing systems which screen, monitor and diagnose health conditions with accuracy comparable to physician office and laboratory instrumented tests.

The company's CholesTrak home cholesterol test is the only FDA cleared testing system of its type. ChemTrak was the second company to file a Pre-Market Approval Application (PMA) with the FDA for a home HIV reference test and counseling service.

ChemTrak's home HIV PMA Application has been accepted by the FDA and is awaiting approval. -0-

                         CHEMTRAK INCORPORATED
                    SUMMARY STATEMENTS OF OPERATIONS
                 (In thousands, except per share amounts)
                               (Unaudited)

                              Third quarter ended    Nine Months ended
                                 September 30,         September 30,
                                1995       1994       1995       1994

Net revenues:
  Product sales                $ 271    $ 2,405    $ 1,935    $ 5,863
  Funded research
   and other                     215        520      1,125      2,270
     Total revenues              486      2,925      3,060      8,133

Cost and expenses:
  Cost of product
   revenues                      518      1,645      2,555      4,047
  Research and
   development                   807        569      2,057      1,580
  Marketing, general
   and administrative            465        954      1,892      2,795
  Purchase of in-process
   research & development         --        --       1,500         --
     Total costs & expenses    1,790      3,168      8,004      8,422

Operating income (loss)       (1,304)      (243)    (4,944)      (289)

Interest income, net              63         59        221        132
Net income (loss)           $ (1,241)   $  (184)  $ (4,723)   $  (157)
Net income (loss) per share $  (0.13)   $ (0.02)  $  (0.49)   $ (0.02)

Shares used in calculating
 per share data                9,699      9,229      9,624      9,220

                           CHEMTRAK INCORPORATED
                             BALANCE SHEET DATA
                              (In thousands)

                                    Sept. 30, 1995     Dec. 31, 1994

Cash, cash equivalents and
 short-term investments                $ 4,747          $  7,773
Working capital                          4,443             7,816
Property and equipment, net              3,357             3,649
Total assets                             9,005            13,308
Total stockholders' equity               7,639            11,345

CONTACT: ChemTrak Inc., Sunnyvale

Alene A. Holzman, 408/773-8156