Clinicor reports first quarter results; Net service revenues increased 138%.

AUSTIN, Texas--(BUSINESS WIRE)--May 22, 1997--Clinicor, Inc. (OTCBB: CLCR), an innovative provider of clinical research services to the pharmaceutical, biotechnology and medical device industries, today announced operating results for the 1997 first quarter ended March 31, 1997.

Gross service revenues increased approximately 200% to $2,546,102 in the 1997 first quarter, compared to $854,658 in the first quarter of 1996. Net service revenues, which are net of reimbursable costs or costs passed through to sponsors, increased 138% to a record $1,421,875, compared to net service revenues of $597,992 in the first quarter of 1996. The increase in revenues is primarily attributable to an increase in the volume and size of clinical trials, and to a lesser extent, an increase in data management and consulting engagements.

As a result of higher SG&A expenses reflecting the significant expansion in Clinicor's professional staff and operational infrastructure during the last three quarters, Clinicor's net loss applicable to common stock increased to $566,075, or $0.14 per share, for the first quarter of 1997, compared to a net loss applicable to common stock of $74,541, or $0.02 per share, in the first quarter of 1996. The net loss applicable to common stock also reflects higher depreciation and amortization expenses in the first quarter of 1997, as well as preferred stock dividends, which were not paid in the first quarter of 1996. The weighted average number of shares outstanding in the 1997 and 1996 first quarter periods were 4,086,400 and 3,965,459, respectively.

Clinicor's study backlog as of March 31, 1997 reflects 33 clinical studies, consulting engagements and data management projects from 16 customers which are expected to be completed over the next 18 months. Since its formation in late 1992, Clinicor has performed studies for a total of 29 different sponsors including some of the world's leading biotechnology and pharmaceutical companies.

Thomas P. O'Donnell, Chief Executive Officer, commented, "Our strong first quarter revenue growth is a direct result of the investments we have been making in our professional and management teams and in the acceleration of our sales and marketing efforts. Based on current contract activity and the strength of our growing contract backlog, we are confident that Clinicor will demonstrate continued period-over-period revenue growth in the remaining quarters of 1997 while also moving closer to profitability."

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.

The forward-looking statements in this press release involve risks and uncertainties, including, but not limited to, quarterly fluctuations in results, the timing and performance of contracts, the management of growth, and other risks. Actual results may differ materially from management expectations. 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 recent report on Form 10-KSB for the year ended December 31, 1996. -0-

                           CLINICOR, INC.
                       Summary Balance Sheet
                           March 31, 1997
                          (in thousands)
                            (Unaudited)

              Cash, restricted cash
                and cash equivalents(a)      $1,369
              Total current assets           $3,689
              Total assets                   $4,958

              Total current liabilities      $3,377
              Total liabilities              $3,391
              Total stockholders' equity     $1,567
-0-

                           CLINICOR, INC.
                 Summary Statements of Operations
               (in thousands, except per share data)

                                                   Three Months Ended
                                                        March 31,
                                                    1997         1996
Service revenue:                                      (Unaudited)
  Gross service revenue                          $ 2,546       $  855
  Reimbursable costs                               1,124          257
  Net service revenue                              1,422          598
Operating costs and expenses:
  Direct costs                                       962          407
  Selling, general and administrative                828          239
  Depreciation and amortization                      119           20
Total operating costs and expenses                 1,909          666

Loss from operations                                (487)         (68)

Interest expense, net                                 (6)          (7)
Net loss                                         $  (493)     $   (75)

Net loss                                         $  (493)     $   (75)
Preferred stock dividends                            (73)          --

Net loss applicable to common stock              $  (566)     $   (75)

Net loss applicable to common stock per share     ($0.14)      ($0.02)

Weighted average number of common shares           4,086        3,965

(a) $1 million of cash and cash equivalents is restricted.

CONTACT: Thomas P. O'Donnell David C. Collins

President Jaffoni & Collins Incorporated

512/344-3357 212/505-3015 or [e-mail]