ChemTrak reports results for 1997.

SUNNYVALE, Calif.--(BUSINESS WIRE)--April 15, 1997--ChemTrak Inc. (NASDAQ:CMTR) Tuesday reported a net loss of $1,295,000 ($0.11 loss per share) for the first quarter ended March 31, 1997.

Total revenues were $1,441,000 for the period, including $608,000 in product sales. During the same three month period in 1996, the company reported a net loss of $1,496,000 ($0.15 loss per share) on total revenues of $1,006,000, including $856,000 of product sales.

The product revenues of $608,000 for the first quarter of 1997, represent an increase of $165,000 or 37% over 1996 fourth quarter product revenues, although they were $248,000, or 29%, below the $856,000 reported for the same period in 1996, primarily due to initial stocking orders in 1996.

"The sales growth we have seen in the first quarter can be attributed to the beginning of the introduction of ColoCARE. The first quarter 1996 product revenues were high due to the re-introduction of the company's successful home cholesterol test which is sold under ChemTrak's CholesTrak brand name," said Edward F. Covell, president and chief executive officer of ChemTrak.

Funded research and other revenues of $833,000 included a milestone payment from Astra Merck who will market ChemTrak's H. Pylori test as HpChek. The company also received a license fee from Selfcare Inc. of Waltham, Mass. for the Pan-European licensing and distribution agreement for marketing the AWARE home HIV test system. Marketing, general and administrative expense were higher during this period reflecting higher advertising and direct marketing expense to support increasing sales of CholesTrak.

"We are pleased to be able to report that product cost and product development expenses have been kept under those of both the first and last quarters of 1996 even during a new product launch. This comes as a result of the focus of our new management team," Covell said.

ChemTrak has progressed toward its objective of becoming a multi-product company. It continues to ship CholesTrak, and has begun shipments of ColoCARE, a home test for the detection of the early warning signs of colorectal disease, and of HpChek, the H. Pylori test to its distributor, Astra Merck. While the company is continuing to wait for FDA clearance, it anticipates launching its AWARE home HIV test service in the United States later this year following such clearance.

ChemTrak is a full-service personal medical diagnostics company that develops and manufactures reliable and easy-to-use medical testing systems. ChemTrak medical test kits are designed to screen and diagnose health conditions with accuracy comparable to physicians office and laboratory instrumented tests. -0-

Except for the historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results might differ materially from these statements due to risks and uncertainties, including determinations by the FDA, the impact of competitive product and pricing, the timely development and acceptance of new products and medical market conditions and other factors discussed in the company's form 10K. -0-

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

                                                First quarter ended
                                                     March 31,
                                              1997            1996
Net revenues:
  Product sales                               $608            $856
  Funded research and other                    833             150
    Total revenues                           1,441           1,006

Cost and expenses:
  Cost of product revenues                     704              731
  Research and development                     453              744
  Marketing, general and administrative      1,623            1,094
    Total costs and expenses                 2,780            2,569

Operating income (loss)                     (1,339)          (1,563)

Interest and other income                       44               67
Net loss                                   $(1,295)         $(1,496)
Net loss per share                          $(0.11)          $(0.15)

Shares used in calculating per share data   12,085            9,732


                        CHEMTRAK INCORPORATED
                          BALANCE SHEET DATA
                            (In thousands)

                                      March 31, 1997    Dec. 31, 1996

Cash, cash equivalents and
short-term investments                     4,069              4,692
Working capital                            3,723              4,656
Property and equipment, net                2,499              2,738
Total assets                               7,980              8,841
Total stockholders equity                  5,180              5,030

CONTACT: ChemTrak, Sunnyvale

Donald V. Fluken, CFO

408/773-8156

or

Freeman/McCue Public Relations

714/557-3663