Cytel awarded grant to develop Theradigm technology for testing in a primate model of AIDS.

SAN DIEGO--(BUSINESS WIRE)--Aug. 21, 1996--Cytel Corporation (NASDAQ:CYTL) announced today that it has been awarded a Phase I Small Business Innovation Research Program (SBIR) grant from the National Institutes of Health (NIH) through the National Institute of Allergy and Infectious Diseases (NIAID). In collaboration with Dr. David Watkins at the University of Wisconsin, Cytel will develop a vaccine using its Theradigm(TM) technology to be used in a primate model of AIDS.

Cytel's Theradigm technology is designed to stimulate a disease- specific immune response. This technology consists of two important elements -- antigenic peptides (small fragments of protein which stimulate the immune response) and a delivery system. By combining disease-specific antigenic peptides with the proprietary Theradigm delivery vehicle, Cytel's modular technology provides a platform for the development of multiple therapeutic and prophylactic vaccines. Under this Phase I grant, the Company will utilize its technology to define and manufacture a prophylactic vaccine appropriate for use in studying the prevention of simian immunodeficiency virus (SIV) infection, a primate model for HIV infection in humans. This prophylactic vaccine could then be tested for prevention of SIV infection in monkeys under a Phase II SBIR grant. This would be the first opportunity for the Company to test the Theradigm technology in a prophylactic setting relevant to human disease. Efficacy data in this model would support peptide-based, prophylactic vaccine trials for HIV.

Currently, the Company performs research under six grant awards from the National Institutes of Health, including a Strategic Programs for Innovative Research on AIDS Treatment (SPIRAT) grant in which a therapeutic vaccine will be evaluated in patients with HIV infection.

Cytel Corporation 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 enzymatic synthesis technology enabling the manufacture of large quantities of complex carbohydrates at commercially viable prices.

Except for the historical information contained herein, this discussion contains forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, successful and timely clinical development of products and the ability to manufacture those products cost effectively, as well as those discussed in the Company's most recent Form 10-K and Form 10-Qs.

CONTACT: Cytel Corporation, San Diego

Beth Kriegel, 619/552-3000