Clinicor Reports 1998 Fourth Quarter and Year-end Results.

AUSTIN, Texas--(BUSINESS WIRE)--March 29, 1999--Clinicor, Inc. (OTC BB:CLCR), an innovative provider of clinical research services to the pharmaceutical, biotechnology and medical device industries, today announced operating results for the fourth quarter and year ended December 31, 1998.

Clinicor's fourth quarter net loss narrowed by 34% to $551,000, compared to a net loss of $839,000 in the year-ago fourth quarter, as a result of a successful effort to reduce expenses and improve operating efficiencies. Net service revenue, net of reimbursable or pass-through costs, was $1,499,000 versus $1,889,000 in the year-ago fourth quarter. During the three-month period, direct costs were reduced by 23% and SG&A expenses were lowered 22%. The reduction in SG&A expenses was due to lower general and administrative costs, partially offset by an increase in sales expense as Clinicor bolstered its growing marketing and sales team with the addition of several experienced industry veterans. Net interest expense decreased by approximately $111,000 in the 1998 fourth quarter, versus the 1997 three-month period.

Net loss applicable to common stock improved by over 70% to $784,000, or $0.19 per share, compared to $2,644,000, or $0.65 per share. The 1997 net loss applicable to common stock reflects a one-time, $1,666,667 non-cash conversion discount on the November 1997 placement of $5 million in convertible preferred stock. Per share results for the 1998 and 1997 fourth quarter periods are based on 4,169,734 and 4,086,400 weighted average shares outstanding, respectively.

For the year ended December 31, 1998, net service revenue rose 4% to $7,319,000, versus $7,066,000 in 1997. Direct costs rose 11% in 1998 compared to 1997, primarily due to the addition of staff needed for clinical trials and related overhead in the first half of 1998. SG&A expenses decreased by 8% in 1998 versus 1997, mainly as a result of operating efficiency improvements implemented during the second half of 1998.

Clinicor's net loss for 1998 improved by 17% to $1,941,000, compared to a net loss of $2,341,000 in 1997. The improvement was substantially due to net interest income in 1998 of $16,105, versus net interest expense of $329,900 in the previous twelve-month period. The net loss applicable to common stock was reduced by 34% in 1998 to $2,865,000, or $0.69 per share, compared to a net loss applicable to common stock of $4,368,000, or $1.07 in the year-earlier period. The 1997 net loss was impacted by the $1,666,667 conversion discount on the $5 million convertible preferred stock placement. Per share results for 1998 and 1997 are based on 4,150,761 and 4,086,400 weighted average shares outstanding, respectively.

Robert S. Sammis, President, commented, "Over the past twelve months we made significant progress in further strengthening the Clinicor organization and operational infrastructure while at the same time achieving modest improvements in our operating performance. We were fortunate to recruit and add respected senior executives from the CRO industry, Dr. Rosina Maar and Susan Krivacic, both formerly with Quintiles Transnational Corporation, to our organization. We also expanded our sales and marketing team to support the Company's new marketing plan, and we are beginning to see tangible results from their collective efforts.

"We also completed the implementation of our web-enabled enterprise applications on an Oracle database platform. This state-of-the-art system provides us with competitive advantages in project management, data management and in addition, supports our financial reporting and budgeting processes. While these efforts have consumed significant resources and attention in 1998, they place our organization on a significantly more competitive footing and expand our range of growth opportunities in 1999 and beyond."

Clinicor, Inc., an Austin, Texas-based contract research organization (CRO), provides product development services including Phase I - IV clinical trials management, patient recruitment, monitoring, data management services and regulatory consultation to the pharmaceutical, biotechnology and medical device industries. Clinicor differentiates itself through a unique operating model that emphasizes its specialized patient recruitment, patient management and study monitoring capabilities. Management believes that Clinicor's approach accelerates the recruitment of patient populations and enhances the accuracy of clinical data, resulting in high caliber clinical trial services offering significant value to sponsors.

Certain statements in this press release, including statements regarding the Company's working capital needs, are forward-looking statements. A variety of factors could cause the Company's actual results and experience to differ materially from the results anticipated by management. Among the risks and uncertainties that could affect the Company's operations and performance are matters affecting the timing of clinical trials being conducted by the Company, including possible decisions by sponsors to suspend or alter the timing or scope of clinical trials, risks related to the management and financing of growth, and other risks. Detailed information concerning factors that could cause actual results to differ materially from management's expectations is available in the "Management's Discussion and Analysis" portion of the Company's report on Form 10-KSB for the year ended December 31, 1997. -0-

                         Clinicor, Inc.
                      Summary Balance Sheet
                         (in thousands)

                                12/31/98     12/31/97
Cash and cash equivalents        $ 1,666      $ 3,255
Total current assets             $ 4,290      $ 5,858
Total assets                     $ 5,390      $ 6,887
Total current liabilities        $ 3,045      $ 2,152
Total liabilities                $ 3,453      $ 2,220
Total shareholders' equity       $ 1,937      $ 4,667


                         Clinicor, Inc.
                 Summary Statement of Operations

                         Three Months Ended     Twelve Months Ended
                               December 31,          December 31,
                            1998      1997        1998      1997
                              (unaudited)            (audited)
Service revenue:
 Gross revenue         $2,988,448 $2,621,722  $11,553,901 $10,856,562
 Reimbursable costs      1,489,817    732,286    4,235,221  3,790,416
   Net service revenue   1,498,631  1,889,436    7,318,680  7,066,146

Operating costs and
 expenses:
  Direct costs           1,106,322  1,437,078    5,584,810  5,052,698
  Selling, general and
   administrative          806,217  1,027,347    3,255,331  3,549,622
 Depreciation and
  amortization             114,970    111,805      435,846    474,464
   Total operating costs
    and expenses          2,027,509 2,576,230    9,275,987  9,076,784

Loss from operations       (528,878) (686,794)  (1,957,307)(2,010,638)

Interest income (expense)   (21,925) (151,851)      16,105   (329,897)

Net loss                 $(550,803)$(838,645) $(1,941,202)$(2,340,535)

Preferred stock dividends
   and other charges    (233,113)(1,805,126)(a) (923,437)(2,027,880)(a)

Net loss applicable to
   common stock        $(783,916)$(2,643,771) $(2,864,639)$(4,368,415)

Net loss applicable to
 common stock per share:
   Basic/Diluted       $  (0.19) $     (0.65) $   (0.69)     $  (1.07)
Weighted average number of
   common share equivalents
   outstanding:
   Basic/Diluted      4,169,734    4,086,400  4,150,761     4,086,400


(a)  Includes in 1997 a one-time, non-cash charge of $1,666,667 for
     the conversion discount related to the November 1997 placement of
     $5 million in convertible preferred stock.