Cytoclonal Announces Integration of Its OASIS Gene Technology and QCT Protein Technology; Programs Featured in 'Genetic Engineering News' Article.

Business Editors & Medical Writers

DALLAS--(BUSINESS WIRE)--Aug. 31, 2000

Cytoclonal Pharmaceutics Inc. (NASDAQ: CYPH) announced today the integration of its OASIS(TM) Gene inhibition technology with its Quantum Core Technology(TM) ("QCT(TM)") drug design technology.

The platform technologies target human diseases such as cancer, Alzheimer's disease and the common cold, which have potential markets in excess of $2 billion. The platforms are featured in an article entitled "Life After Human Genome Map" in the current issue of "Genetic Engineering News," (Vol. 20, No. 14, August 2000) a leading publication for the Biopharmaceutical industry.

The integration of the OASIS(TM) and QCT(TM) platforms involves a new computer center at Cytoclonal, which includes enhanced bioinformatics capability and the expanded QCT(TM) department. The staff for the new center includes Dr. Dorit Arad who is Executive Vice President of Drug Design and Director of the QCT(TM) department and the following new Scientists: Dr. Bradley Poland from the Howard Hughes Medical Institute at Baylor College of Medicine, who is an expert on X-ray crystallography and drug design; Dr. David Young from Auburn University who is an expert in quantum chemistry; and Dr. Andrew Peek who is an expert in bioinformatics from the University of California at Irvine.

"Libraries of drug leads for both human genes and proteins, the two major components of the human genome, are being developed," said Dr. Arthur P. Bollon, Chairman and Chief Executive Officer. "These libraries could serve as resources for functional genomics and pharmaceutical drugs for the biopharmaceutical industry."

Cytoclonal, along with Hyseq (NASDAQ: HYSQ), recently became founding members of a functional genomics consortium sponsored by Molecular Simulations, Inc. (MSI), a wholly owned subsidiary of Pharmacopia, Inc. (NASDAQ: PCOP). The consortium members will have exclusive access to Atlas Base(TM) and Gene Atlas(TM). Both technologies could enhance utilization of human genome information for Cytoclonal's OASIS(TM) and QCT(TM) drug development platforms.

The OASIS(TM) technology involves optimized antisense reagents developed with Dr. Donald Gray at the University of Texas at Dallas under contract with Cytoclonal. Cytoclonal has exclusive worldwide rights to this patented technology, which has resulted in lead compounds for cancer targeting the PKC-a, BCL, and c-RAF cancer genes. The gene inhibitors are unique because they are more effective than standard antisense 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. An OASIS(TM) library of inhibitors to all human genes is being developed at Cytoclonal.

Quantum Core Technology(TM) involves a novel drug design technology against protein targets from the human genome. Novel leads using QCT(TM) are in development for cancer, Alzheimer's disease, the common cold, and tuberculosis. The QCT(TM) technology targets the mechanism of the enzymes for drugs that are small, cost effective, reduced toxicity, and reduced drug resistance. The QCT(TM) team under the direction of Dr. Dorit Arad includes: advisory board member Dr. John Pople who received the Nobel Prize in chemistry in 1998; Dr. Kendall N. Houk, a world leader in the field of protein mechanism and received the prestigious Schrodinger Medal in 1999; Dr. Yitzhak Apeloig, a world leader in quantum chemistry; Dr. Andrew S. Kende, one of the world's leading organic chemists; and Dr. Michael James a world leader in X-ray Crystallography.

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. The major platforms include the QCT(TM) (Quantum Core Technology(TM)), the company's proprietary rational drug design, targeting proteins, and OASIS(TM) optimized antisense library for regulating genes. Other programs include 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.