DUSA Pharmaceuticals raises $5.4 million in primary offering; reports first quarter results.

MISSISSAUGA, Ontario--(BUSINESS WIRE)--May 3, 1996--DUSA Pharmaceuticals, Inc. (NASDAQ NMS: DUSA; TSE:DSP) reported today that it has raised $5.4 million in a primary offering of 750,000 shares of common stock.

The company's form S-2 registration statement was filed on March 14, 1996 and closed May 1.

Dr. D. Geoffrey Shulman, president and chief executive officer, stated "We are gratified by the strong support for DUSA shares in recent months. Following this offering, the Company will have cash and United States Government securities totaling approximately $23 million, putting DUSA in position to continue its active program of clinical trials on ALA PDT and PD."

The net loss for the three month period ended March 31, 1996 was ($1,110,172) or ($0.13) per share, compared to ($884,604) or ($0.16) per share for the same period last year. Research and development costs were $950,527, up from $713,219 in the prior year period. Interest income totaled $268,702, compared to $165,019 for the same period last year. At March 31, 1996, the company had cash and United States Government securities totaling $19,717,719 and shareholders' equity of $19,296,234, compared to $9,856,777, and $9,661,714 respectively, at March 31, 1995.

DUSA Pharmaceuticals, Inc. is a development stage New Jersey pharmaceutical company engaged primarily in the development of ALA PDT and PD as a proprietary technology platform for multiple medical indications. PDT and PD utilize light-activated compounds such as ALA to induce a therapeutic or diagnostic effect. DUSA is a leader in topical and locally applied PDT and PD. -0-

                        Three Months Ended        Three Months Ended
                          March 31, 1996            March 31, 1995

Interest Income             $268,702                    $165,019
Research and Development
 Costs                      $950,527                    $713,219
Other Operating Expenses    $426,591                    $298,287
Net (Loss)               ($1,110,172)                  ($884,604)
(Loss) Per Share              ($0.13)                     ($0.16)
Average Number of Shares
 Outstanding               8,542,642                   5,438,500
Cash and U.S. Government
 Securities              $19,717,719                  $9,856,777
Shareholders' Equity     $19,296,234                  $9,661,714

             (All figures are in US dollars and unaudited)

CONTACT: DUSA Pharmaceuticals, Inc., Mississauga

D. Geoffrey Shulman, MD FRCPC

President and CEO

905/677-4554 (phone)

905/677-5240 (fax)