Cytel Corp. announces 1996 financial results.

SAN DIEGO--(BUSINESS WIRE)--Feb. 4, 1997--Cytel Corp. (NASDAQ:CYTL) Tuesday announced financial results for the fourth quarter and year ended Dec. 31, 1996.

For the three month periods ended Dec. 31, 1996, and 1995, the company reported revenues of $3.2 million and $4.7 million, respectively. Net loss for the fourth quarter of 1996 was $2.7 million, or 11 cents per share, compared with $5.1 million, or 21 cents per share, for the same period in 1995.

The company reported revenues for the year ended Dec. 31, 1996, of $10.9 million and a net loss of $12.5 million, or 50 cents per share. These results compare with revenues of $16.8 million and a net loss of $8.0 million, or 36 cents per share, for the same period in 1995.

As of Dec. 31, 1996, Cytel had cash, cash equivalents, short-term investments and a receivable under grant agreements aggregating $25.9 million.

Cytel is a leader in the discovery, design and development of immunotherapeutics, a class of drugs which the company believes will be more selective and have fewer side effects than drugs currently on the market.

Cytel's core technology platforms consist of the Immune Stimulation Program under which the company is developing therapeutic vaccines for infectious diseases and cancers, the Immune Suppression Program which is based on anti-inflammatory cell adhesion inhibitors, and Glycotechnology -- its proprietary SNC Technology enabling the manufacture of large quantities of complex carbohydrates at commercially viable prices. -0-

                             Cytel Corp.

             Condensed Consolidated Statements of Operations
               (in thousands, except for per share data)


                      Three months ended            12 months ended
                      1996          1995           1996         1995

Revenues:
 Research and
  development     $  2,611      $  4,154       $  8,641    $  15,287
 Research grants
  and other income     550           567          2,251        1,484
Total revenues       3,161         4,721         10,892       16,771

Operating expenses:
 Research and
  development        4,830         4,713         20,861       16,507
 General and
  administrative     1,258         1,336          3,919        4,204
 Acquired
  in-process
  research and
  development           --         4,201             --        5,934
Total expenses       6,088        10,250         24,780       26,645

Interest income,
 net                   276           478          1,437        1,881

Net loss          $ (2,651)     $ (5,051)     $ (12,451)    $ (7,993)

Net loss
 per share        $  (0.11)     $  (0.21)     $   (0.50)    $  (0.36)

Shares used in
 computing net
 loss per share     25,076        23,795         24,866       22,470


                   Condensed Consolidated Balance Sheets
                              (in thousands)

                                  Dec. 31,           Dec. 31,
                                    1996                1995

Assets
Current assets:
  Cash, cash equivalents,
   and short-term investments   $  25,282           $  38,439
  Other current assets              1,422               3,557
Total current assets               26,704              41,996

Property and equipment, net         2,935               2,488
Other assets                        4,651               3,628
Total assets                    $  34,290           $  48,112

Liabilities and
 stockholders' equity
Current liabilities             $   4,089           $   7,376
Other liabilities                   2,711               2,212
Stockholders' equity               27,490              38,524
Total liabilities and
 stockholders' equity           $  34,290           $  48,112

CONTACT: Cytel Corp., San Diego 

Karin Eastham, 619/552-3000