Chromatics announced $2.5 million 3% convertible debenture financing.

NEW YORK--(BUSINESS WIRE)--April 3, 1996--CHROMATICS COLOR SCIENCES INTERNATIONAL, INC. (NASDAQ:CCSI) (the "Company") today announced that it has received approximately $2.2 million net proceeds from the sale of $2.5 million of its 3% Convertible Debentures due April 1, 1998.

The company can elect to sell up to an additional $2.5 million Debentures in this transaction upon effectiveness of a registration statement for the shares of common stock issuable upon conversion of the Debentures.

The company intends to use a portion of the proceeds of the financing to consummate its recently announced proposed acquisition of Fiberoptics Medical Products, Inc., a supplier and distributor of neonatal pediatric therapeutic devices, specializing in products for the treatment of Bilirubin disease. That acquisition is anticipated to close during the second quarter of 1996.

The conversion price per share is equal to 80% of the average of the closing bid prices of the Common Stock as reported by NASDAQ over the five consecutive trading days ending on the trading day immediately preceding the date the company receives the Debenture for conversion provided, however, that (i) the conversion price per share with respect to the shares issuable upon conversion of the first $2.5 million of Debentures will not exceed $9.00 per share and (ii) the conversion price per share with respect to the shares issuable upon conversion of the second $2.5 million of Debentures, if applicable, will not exceed the greater of $9.00 or the average of the closing bid prices of the Common Stock as reported by NASDAQ over the five consecutive trading days ending immediately prior to the effective date of the Registration Statement. In the event the company has not effected such registration by September 30, 1996, the Debentures will be immediately convertible into shares of common stock. The company has undertaken to file a Registration Statement for such shares by April 20, 1996.

The Debentures were sold to foreign investors qualified for an exemption from the registration requirements of the Securities Act of 1933, as amended. Neither the Debentures nor the shares may be offered or sold in the United States without registration or an applicable exemption from such registration requirements.

Chromatics Color Sciences International, Inc., is engaged in the business of color science, including the scientific color measurement and classification of human skin, certain color-sensitive consumer products, and in determining the color compatibility of such skin and product color classification for use in a variety of industries including the cosmetic, beauty aid and fashion industries, as well as technology development for potential medical applications involving the diagnosis and monitoring of certain chromogenic diseases. The company's common stock and warrants are traded on NASDAQ under the symbols "CCSI" and "CCSIW," respectively.

CONTACT: Darby Macfarlane, CEO 

212/717-6562 (Phone)

212/717-6672 (Fax)