Daxor makes announcement.

NEW YORK--(BUSINESS WIRE)--May 17, 1996--The Daxor Corp. announced today that the five judge panel of the NYS Appellate Court in a 5 - 0 interim decision against the New York State Health Department issued an injunction against the NYSDOH and ordered the reopening of all of Idant's facilities including its blood, semen and tissue banks immediately.

The Department of Health was further enjoined from corresponding with Daxor or Idant's clients. Daxor expects to phase in full scale operations as soon as possible.

Dr. Joseph Feldschuh, the president of Daxor, stated, "the decision by the five judge panel of Hon. Joseph P. Sullivan, Betty Weinberg Ellerin, Israel Rubin, Theodore R. Kupferman, Milton L. Williams, Justices, has removed the threat of destruction of the stored blood and semen specimens of Daxor's Idant division's approximately 3,000 clients."

Background

On Aug. 21, 1995, the NYSDOH ordered all of Daxor's facilities (including but not limited to the Idant Semen and Blood banks) closed due to alleged administrative violations that were unrelated to its semen bank or blood bank. Health Department officials, including Drs. Lawrence Sturman, Jeanne Linden and Anne Willey ordered that Idant's blood and semen depositors have their stored frozen specimens transferred within 30 days or have their specimens destroyed. The Idant Sperm Bank currently holds approximately 40,000 specimens from its 3,000 depositors, plus 20,000 donor specimens.

Daxor's autologous (self-storage) frozen blood bank is the only blood bank in the northeast that is able to provide ten year frozen storage of an individual's blood. This meant that Daxor's clients, many of whom are at an increased risk of requiring a transfusion, would have had their blood destroyed. With regard to semen banking, Idant has a unique canister carousel storage system in which sperm specimens remain in storage under liquid nitrogen at -321 degrees Fahrenheit indefinitely, without disturbance.

New York State sperm banking standards are so lax that they permit storage under markedly inferior conditions such as nitrogen vapors. A separate class action suit was initiated before NYS Supreme Court Justice Stuart Cohen on behalf of Idant's 3,000 clients. This was initiated to prevent the forced destruction of their semen and blood specimens. Justice Cohen ordered that the clients' specimens not be moved or destroyed until he could evaluate the situation. Despite Justice Cohen's orders, Dr. Jeanne Linden forced a limited number of clients to transfer all of their specimens to storage facilities, such as Biogenetics, in New Jersey.

In February 1996, Justice Cohen appointed an independent internationally recognized expert Dr. Stanley Leibo to conduct inspections of Idant and the major storage facilities recommended by the Health Department. On May 3, Leibo issued a report to Justice Cohen which found Idant to be a facility of "excellence" and high quality. Moreover, Leibo stated that the N.Y. - N.J. storage facilities specifically recommended by Linden of the Health Department (such as Biogenetics) had such serious flaws, that he considered them unacceptable. After reviewing this report, Justice Cohen immediately issued an injunction against the NYSDOH, pending the ruling of the five judge Appellate Court panel.

The actions taken by Justice Cohen literally saved the stored blood and semen of Daxor's 3,000 clients. Many of the Idant Semen Bank clients are cured cancer victims whose stored semen is their only opportunity to have their own children.

There are no standards in New York State for sperm banking requiring that sperm be stored under liquid nitrogen. There are no standards requiring sperm banks to record how many times a specimen is removed into room air. Most semen banks use a rack and cane storage system whereby as many as 100 specimens may be stored on a single cane. Such a system requires that all frozen specimens be removed into room air in order to retrieve a single specimen. These specimens undergo deterioration with multiple room air exposures. A limited number of the Idant cancer patients were forced by Linden to transfer their specimens to inferior sperm storage facilities such as Biogenetics. Some of these individuals may have lost their only opportunity to have their own children.

Daxor's clients owe an invaluable debt of gratitude to these six Justices who protected the overwhelming majority of Idant's clients from these regulators whose primary intent has been destroying private frozen blood banking. The Daxor Corp. has a RICO (federal anti-racketeering lawsuit) against these Health Department officials and a $100 million anti-trust suit against the New York Blood Center. Daxor is represented by Schneider, Harris, Harris of Woodmere, N.Y. Full scale semen and blood banking operations will be phased in as soon as possible.

CONTACT: Daxor Corp.

Dr. Joseph Feldschuh or Angela Ramirez, 212/244-0555