Cytoclonal Pharmaceutics Provides Status of Gaucher's Disease Program.

Business Editors, Health/Medical Writers

DALLAS--(BUSINESS WIRE)--March 9, 2001

Cytoclonal Pharmaceutics Inc. (NASDAQ: CYPH) announced today that it has completed work to identify a new expression system for the enzyme defective in Gaucher's disease, glucocerebrosidase, and will now explore opportunities for licensing the company's technology to companies active in this field.

Gaucher's disease is a genetic disorder affecting approximately 20,000 people worldwide. It results in a defective enzyme, glucocerebrosidase, and causes multi-organ dysfunction. Treatment involves delivery of the normal enzyme.

Cytoclonal Pharmaceutics is a biopharmaceutical company specializing in the development of therapeutic products for the treatment and prevention of cancer, infectious and genetic diseases. 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.

CYTOCLONAL PHARMACEUTICS INC.

LETTER TO SHAREHOLDERS MARCH 9, 2001

Dear Cytoclonal Shareholder:

I'm Gary Frashier, and I'm pleased to have this opportunity to communicate with you about the progress of our company. I was recently elected Chairman of the Board of Cytoclonal Pharmaceutics, after a twenty-four year career of serving as a CEO in scientific, life science and pharmaceutical research companies. I have also served on the Board of Directors of quite a number of public and private biotechnology and pharmaceutical companies. We will do our best to update our shareholders on a regular basis in the future, as we progress towards our goals in drug development.

Year 2000 was very significant for Cytoclonal Pharmaceutics. The company achieved its strongest financial position to date, as a result of the redemption of the C and D warrants in March and April, resulting in the generation of $37.6 million. In parallel with the financial developments, Cytoclonal joined the NASDAQ National Market.

In addition to the strengthened financial position, important progress was made with the company's two drug design platform technologies; Quantum Core Technologies(TM) (QCT(TM)) and Oasis(TM), which target proteins and genes, respectively. The Quantum Core Technology(TM) program is a computer-assisted drug design technology, primarily targeted to inhibition of proteins involved in disease. QCT(TM) was developed by Dr. Dorit Arad, who previously worked at Tel Aviv University and is now Cytoclonal's Executive Vice President of Drug Design. It employs computational chemistry developed by Dr. John Pople, who received the Nobel Prize in Chemistry in 1998. Dr. Pople is on the Scientific Advisory Board of Cytoclonal.

Using QCT(TM), the company recently announced the creation of inhibitors of the protease 3C protein of rhinovirus, for the potential treatment of the common cold. Cancer and other diseases are also being targeted with the QCT(TM) technology. To complement QCT(TM), the company's chemistry facility is being expanded to include a medicinal chemistry section, which is critical to drug design and development. We have announced that the company has added Dr. Michael James to the Scientific Advisory Board. He is considered one of the world leaders in x-ray crystallography, which is used to determine the structure of proteins, and is the basis for applying QCT(TM).

The company has also announced the exclusive licensing of a technology for potentially treating Bacterial Drug Resistance, one of the major challenges in medicine today. Researchers at the University of British Columbia and the University of California, San Diego have identified an enzyme called amidase, which modifies and inactivates antibiotics, rendering them ineffective. Inhibition of the amidase enzyme, which has been identified in M. tuberculosis, could potentially prevent the inactivation of antibiotics used to treat this disease, and potentially prolong the usefulness of some antibiotics that cannot now be used due to drug resistance. Inhibitors of the amidase are under development using both the QCT(TM) and Oasis(TM) technologies.

Oasis(TM) is a patented technology developed with the University of Texas, under contract with Cytoclonal, and to which the Company has exclusive rights. It involves creating optimized antisense inhibitors to genes based on their sequence and other properties. Inhibition of genes involved in disease, such as cancer, have potential for development into therapeutic drugs. Furthermore, inhibition of genes is a tool for determining gene function, which is now a major focus since the completion of sequencing of the human genome. This past year Cytoclonal announced the development of antisense inhibitors for the human cancer-related genes PKC-alpha, c-RAF and BCL-1. Recently the company announced the creation of an Oasis(TM) library of inhibitors to all the genes of the M. tuberculosis bacteria, which causes tuberculosis, and a library of inhibitors of additional human genes.

Progress has continued on the Paclitaxel (Taxol(R)) program with Bristol-Myers Squibb. A primary goal of the program is to establish a cost effective microbial production system for Paclitaxel using genetic engineering and fermentation. Paclitaxel is an active ingredient in BMS's $1.7 billion cancer drug. Presently Paclitaxel is made from components of the Yew tree resulting in high cost and limited supply. A new patent was recently issued to our company for a second gene involved in the pathway for the biosynthesis of Paclitaxel. The gene was isolated by Dr. Rodney Croteau under contract with Cytoclonal. The research and development agreement with BMS for the Paclitaxel program was funded with an additional $2 million by BMS. A genetically engineered production system for Paclitaxel could potentially be used to make an improved second generation Paclitaxel, which may be useful for treatment of the chronic disease, Polycystic Kidney Disease (PKD). Cytoclonal has exclusive rights to patents from UCLA for treatment of PKD with Paclitaxel or related compounds.

We have completed the work the company has been doing to identify a new expression system for the enzyme defective in Gaucher's disease, Glucocerebrosidase. We will explore licensing the company's technology to companies active in this field.

As the company progresses from technology development to its goal of becoming a drug development company focused on proprietary products, we have made a number of changes and key staff additions. In addition to my election as Chairman, having retired after almost ten years as CEO and then Chairman, of OSI Pharmaceuticals, Inc., we were also extremely pleased to have announced the addition of Robert J. Easton to the Board of Directors. Mr. Easton is Chairman and Founder of Easton Associates, L.L.C., a leading healthcare consulting practice. He previously served as Managing Director of IBM Healthcare Consulting, as well as President of the Wilkerson Group, a leading healthcare concern. Mr. Easton has an MBA from Harvard University.

We are pleased to announce that Dr. Robert J. Rousseau has joined Cytoclonal as Vice President of Business Development and Licensing. Dr. Rousseau brings many years of experience in the pharmaceutical industry, most recently at Hoechst Marion Roussel, Inc. and previously at Marion Merrell Dow, where he especially focused on the areas of collaborations and technology licensing. The company recently appointed Joan H. Gillett, CPA, as Vice President, Controller and Principal Accounting Officer. Ms. Gillett was formerly Chief Financial Officer and Controller of International Isotopes, Inc., a biotechnology company. She adds substantial financial and administrative experience to the company. Chief Financial Officer Daniel M. Shusterman was named to the new post of Vice President, Administration and General Counsel.

In its efforts to build shareholder value, the company is now positioned to move more substantially into proprietary drug development. Cytoclonal is well financed and is privileged to have both outstanding technology and a creative staff.

We appreciate and thank our shareholders for their support and confidence.

Sincerely,

Gary E. Frashier Chairman of the Board

Except for historical information, the matters discussed in this letter 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.