Clinicor reports record second quarter results; Service revenues increased 64.5%.

AUSTIN, Texas--(BUSINESS WIRE)--Oct. 30, 1996--Clinicor, Inc. (Nasdaq BB: CLCR) today announced record operating results for the second quarter and six months ended June 30, 1996.

For the second quarter ended June 30, 1996, service revenues increased 64.5% to $702,876, compared to $427,276 a year ago, as a result of a greater number of contracts being performed by the Company in the period. The Company's net loss narrowed to $122,875, or $0.03 per share, compared to a net loss of $202,565, or $0.06 per share, in the second quarter of 1995. The weighted average number of shares outstanding in the 1996 second quarter increased to 4,086,400, compared to 3,551,000 in the prior year's period, reflecting shares issued in a private placement that closed February 1996.

For the six months ended June 30, 1996, service revenue increased 49.1% to $1,557,534, compared to $1,043,976 a year ago. The Company recorded a reduced net loss of $197,416, or $0.05 per share, compared to a net loss of $327,626, or $0.09 per share, in the year-ago six months. The weighted average number of shares outstanding in the first six months of 1996 was 3,988,909, compared to 3,551,000 in the prior year's period.

Clinicor's backlog as of June 30, 1996 reflects 32 clinical studies, consulting engagements or data management projects from 12 sponsors which are expected to be completed over the next 18 months. Since its formation in late 1992, Clinicor has performed studies for a variety of sponsors ranging from small biotechnology and medical device companies to some of the world's leading pharmaceutical companies.

Commenting on the Company's growth, Thomas P. O'Donnell, Chief Executive Officer, stated: "Our second quarter performance reflects our continuing success in building our base of sponsor relationships while also securing additional projects from existing customers. Our proven, company-wide service commitment, top-notch professional team and excellent performance record have created a very high level of customer satisfaction and are important factors that contribute to our expanding base of contract activity.

"With the capital provided through our private placement with Oracle Partners, L.P. in mid-July, we are leveraging our reputation for excellence and actively expanding our professional staff and our sales and marketing efforts to accelerate our revenue growth. We believe sponsors are increasingly sensitive to CROs' performance records in awarding new contracts, a trend that plays to our Company's particular strengths."

Except for the historical information in this press release, it includes forward-looking statements that involve risks and uncertainties, including, but not limited to, quarterly fluctuations in results, the management of growth, and other risks. Actual results may differ materially from management expectations.

Clinicor, Inc., an Austin, Texas-based contract research organization (CRO), provides Phase I through Phase IV clinical trials management, including 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. Clinicor's approach accelerates the recruitment of suitable patient populations and enhances the accuracy of clinical data, resulting in high caliber clinical trial services offering significant value to the sponsor. -0-

                         CLINICOR, INC.
                Summary Statements of Operations


                            Three Months Ended       Six Months Ended
                                 June 30,               June 30,
                              1996       1995        1996       1995
Service revenue             $702,876   $427,276   $1,557,534  $1,043,976
Operating costs and
expenses:
  Clinical costs             209,532    190,905      643,957     509,638
  SG&A                       572,993    420,538    1,041,010     824,735
  Depreciation and
   amortization               31,333     14,072       51,072      27,558
Total operating costs
 and expenses                813,858    625,515    1,736,039   1,361,931

Loss from operations        (110,982)  (198,239)    (178,505)   (317,955)
Interest expense              11,893      4,326       18,911       9,671
Net loss                   $(122,875) $(202,565)   $(197,416)  $(327,626)
Net loss per share            $(0.03)    $(0.06)      $(0.05)     $(0.09)
Weighted average shares
 and common equivalents    4,086,400  3,551,000    3,988,909   3,551,000
-0-

                          CLINICOR, INC.
               Pro Forma Summary Balance Sheet(1)
                           June 30, 1996
                          (in thousands)

             Cash and cash equivalents       $3,639
             Total current assets            $4,207
             Total assets                    $4,594

             Total current liabilities       $  920
             Total liabilities               $  947
             Total stockholders' equity      $3,648

(1) Reflects the completion of the July 1996 private placement of $3.5 million in convertible preferred stock with Oracle Partners, L.P. and certain affiliates as if it had occurred prior to June 30, 1996.

CONTACT: Sue Georgen-Saad

Chief Financial Officer

512/327-7524

or

David C. Collins

Jaffoni & Collins Incorporated

212/505-3015 or [e-mail]