DUSA Pharmaceuticals reports 1995 results.

MISSISSAUGA, Ontario, Canada--(BUSINESS WIRE)--Feb. 12, 1996--DUSA Pharmaceuticals Inc. (NASDAQ NMS: DUSA; TSE: DSP) announced today its corporate highlights and audited financial results for the year ended Dec. 31, 1995.

Key events included two late Phase II studies using DUSA's ALA PhotoDynamic Therapy (PDT) for actinic keratoses (AK's); the addition of ALA PhotoDiagnosis (PD) for bladder cancer as an important new indication for the company; and a major financial strengthening, via a successful recent public offering.

Dr. Geoffrey Shulman, president and CEO, stated that "With over $20 million cash as of year-end 95, DUSA is in excellent position to fully develop its AK treatment, and bladder cancer diagnostic indications, while advancing programs for hair removal, endometrial ablation, and acne. Corporate and/or sponsored independent studies are ongoing, or planned, in all these indications for 1996."

The net loss for 1995 was $3,647,533, or ($0.65) per share, compared to $3,539,892, or ($0.66) per share, in 1994. Research and development costs were $3,044,979, or 72% of total 1995 expenses, up from $2,759,254, or 71%, in the prior year. Interest income totaled $579,092, compared to $709,375 the year earlier.

At year end 1995, the company had cash and United States Government securities totaling $20,479,592, and shareholders' equity of $20,219,240, or $2.37 per share, compared to $10,198,329, and $10,132,860 respectively, at year end 1994. The 1995 year end totals include the gross proceeds of a $16.5 million public offering of three million shares at $5.50 per share in December 1995, minus expenses of the offering, and minus $2.25 million for the repurchase and cancellation of two million options on DUSA stock held by Draxis Health Inc.

DUSA Pharmaceuticals Inc. is a development stage New Jersey company engaged primarily in the development of proprietary methods of PhotoDynamic Therapy (PDT) and PhotoDiagnosis (PD) utilizing 5-aminolevulinic acid (ALA). PDT is a two step medical treatment which combines the use of a pharmaceutical compound with exposure to light to induce a therapeutic effect. -0-

                    Three Months Ended            Year Ended
                         Dec. 31,                   Dec. 31,
                    1995        1994         1995          1994

(All figures are in US dollars and the year end figures are audited)

Interest Income  $  143,709  $  175,149   $  579,092   $  709,375
Research and
  development
  costs          $  868,187  $  671,842   $3,044,979   $2,759,254
Other operating
  expenses       $  351,155  $  264,508   $1,175,296   $1,149,361
Net (loss)      ($1,075,695) ($ 882,414) ($3,647,533) ($3,539,892)
Loss per share        ($0.18)    ($0.16)      ($0.65)      ($0.66)
Average number
  of shares
  outstanding      6,037,522   5,438,500   5,589,486    5,395,349
Cash and U.S.
  treasury notes $20,479,592 $10,198,329 $20,479,592  $10,198,329
Shareholders'
  equity         $20,219,240 $10,132,860 $20,219,240  $10,132,860

CONTACT: DUSA Pharmaceuticals Inc.

D. Geoffrey Shulman, MD, FRCPC

905/677-4554