Cytoclonal Announces Inhibition of BCL Cancer Gene Expansion of "Oasis(tm) Genome Library".

Business & Health Editors

DALLAS--(BUSINESS WIRE)--June 23, 2000

Cytoclonal Pharmaceutics Inc. (NASDAQ: CYPH) announced today the creation of an inhibitor of the BCL cancer gene which is involved in lymphoma, skin cancer and small cell lung cancer. The cancer gene inhibitor was created by Cytoclonal's OASIS(TM) technology.

"With the sequencing of the Human Genome near completion, the next major emphasis will be determining the functions of the genes. The next logical step after delineating gene function is the development of drugs regulating the genes or their related proteins," said Dr. Arthur P. Bollon, Chairman and Chief Executive Officer. "Cytoclonal's OASIS(TM) library could be instrumental in understanding human gene function and in making gene-based drugs."

OASIS(TM) is a collection of inhibitors of various human genes, including BCL, c-RAF and PKC-(alpha), which are cancer genes associated with lymphoma and cancers of the breast, ovary, skin, and lung. The inhibitors are optimized Anti-sense reagents based on patented technology developed by Dr. Donald Gray from the University of Texas under contract with Cytoclonal. Cytoclonal has exclusive worldwide rights to the technology. Cytoclonal's gene inhibitors are unique because they are more effective than standard Anti-sense reagents at inhibiting gene function. This enhanced effectiveness could confer a significant advantage in their use as therapeutic drugs or as tools in functional genomics.

Cytoclonal is expanding the OASIS(TM) library to include inhibitors to all human genes, focusing on those involved in human disease. OASIS(TM) could serve as a source of therapeutic drugs for those diseases which are related to specific genes. OASIS(TM) also serves as a source of reagents for gene function confirmation.

The OASIS(TM) technology complements Cytoclonal's drug design technology, Quantum Core Technology(TM) (QCT(TM)), which targets proteins. By targeting the two key components of the human genome, namely, genes and proteins, Cytoclonal offers license opportunities to pharmaceutical and biotechnology companies for select OASIS(TM) and QCT(TM) lead compounds.

At the same time, Cytoclonal is developing chosen lead compounds from OASIS(TM) and QCT(TM). From OASIS(TM), Cytoclonal is developing PKC-(alpha) for cancer. From QCT(TM), Cytoclonal is developing its Protein Kinase inhibitor lead compound for the common cold, the caspase activator for cancer and an alternative for the cancer drug Taxol(R).

Cytoclonal Pharmaceutics is a biopharmaceutical company specializing in the development of therapeutic and diagnostic products for the treatment and prevention of cancer and other diseases. Based in Dallas, Texas, the company's lead programs involve paclitaxel (active ingredient in Taxol(R)) production using fermentation and genetic engineering in agreements with Bristol-Myers Squibb, and the treatment of Polycystic Kidney Disease using paclitaxel. Other lead programs include Quantum Core Technology(TM), the company's proprietary rational drug design, targeting proteins, and OASIS(TM) optimized antisense library for regulating genes. Other programs involve the discovery of human genes through Retroselection(TM) with a focus on lung cancer and breast cancer treatment by peptide inhibition of estrogen receptors. Additional programs involve production and regulation of the "immortality enzyme" telomerase, Mycobacteria based vaccines and treatment of Gaucher disease. Additional information on Cytoclonal can be found on the company's web site at www.cytoclonal.com

Except for historical information, the matters discussed in this news release may be considered "forward looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results.