Endorex Announces Accomplishments and Results for Third Quarter, 2000.

Business Editors, Health/Medical Writers

CHICAGO--(BW HealthWire)--Nov. 8, 2000

Endorex Corporation (AMEX:DOR) announced business achievements and financial results for the third quarter of this year.

Endorex is an innovative drug delivery company developing technologies for oral and nasal delivery of drugs and vaccines.

Business Accomplishments

Endorex continued its efforts in preclinical development of its oral and nasal delivery systems for the delivery of proteins and peptide-based drugs. During the third quarter, Endorex continued to develop alternative oral formulations of Novo Nordisk's Norditropin(R), Novo's brand of human growth hormone, in preparation for various animal trials anticipated to begin in the fourth quarter. Based in part on the results of such animal trials Novo Nordisk will determine whether to license the Orasome(TM) delivery technology under the existing research and option agreement with Endorex.

On September 30, 2000 Endorex and a subsidiary entered into an agreement with a third party whereby that party purchased for $250,000 an option to acquire one of the company's cancer products and related assets, including intellectual property. The terms and price of option exercise have been negotiated. The option payment will not be recognized as income until additional clinical data have been delivered per the terms of the option agreement. Endorex anticipates that both delivery of the data and the third party's decision regarding the exercise of this option will occur prior to the end of the calendar year.

Joint Venture Development Programs

InnoVaccines continues its efforts to develop prototype oral and nasal tetanus, hepatitis B and flu vaccines, evaluate them in animal models, and prepare for scale up activities that would be necessary to begin clinical trials. Some of this vaccine research and development is occurring under a program with the Southern Research Institute (SRI), initiated in the third quarter, using a delivery system licensed from SRI in 1999.

In conjunction with Schein Pharmaceutical, Inc., which was acquired earlier this year by Watson Laboratories, Newco continues its development programs to meet regulatory approvals required prior to commercialization of its MEDIPAD(R)/iron chelator product in the U.S. Newco is also exploring potential marketing of this product in key international markets with several companies.

Management Addition

During the third quarter, Endorex further strengthened its management team by recruiting Steve Koulogeorge as Controller/Assistant Treasurer. Mr. Koulogeorge has an MBA from DePaul University and a B.S. in Finance from Drake University. He received his Certified Public Accountant certificate from the State of Illinois in 1989. Prior to joining Endorex, he spent approximately six years in accounting positions with Kraft General Foods, eight years in progressively responsible financial and accounting positions at Kraft/Alliant Foodservice Corp., and approximately five years in financial reporting and control positions with Illinois Tool Works.

Third Quarter Financial Results

The company reported a net loss of $1.1 million for the third quarter of 2000, a decrease of 29 percent versus a net loss of $1.6 million for the same period in 1999. After giving effect to dividends on preferred stock, which are paid in additional preferred shares, net loss available to common stockholders for the three-month period ended September 30, 2000 decreased $0.4 million to $1.5 million, or $0.11 per share, compared with $1.9 million, or $0.17 per share for the prior year period. Net loss decreased due primarily to greater interest income, the reduction of expenses related to the company's oncology programs, and to lower general and administrative expenses. These reductions were partially offset by higher equity losses in joint ventures.

Proprietary research and development expenditures for the three months ended September 30, 2000 decreased approximately $0.1 million, or 39 percent, compared with $0.3 million for the corresponding period ended September 30, 1999. On March 1, 2000 Endorex announced its decision to exit the oncology business. As a result, there was a reduction in spending on cancer-related programs during the third quarter of 2000 versus 1999, although spending for drug delivery programs increased during this period.

General and administrative expenses for the three months ended September 30, 2000 decreased $0.3 million, or 41 percent, to $0.5 million as compared to the three months ended September 30, 1999. During the third quarter of 1999 general and administrative expense included approximately $0.4 million of amortization of the cost of financial advisory warrants issued in association with capital raising transactions in 1997. These warrants were fully amortized as of the beginning of 2000, resulting in a decrease in general and administrative expenses during 2000.

During the third quarter of 2000, equity in losses from joint venture activities increased by approximately $0.1 million, or 26 percent, to $0.6 million compared to the same period of 1999. The increase was due to increased spending in both the MEDIPAD(R)/iron chelator and vaccine delivery systems development initiatives. The two joint ventures with Elan Corporation, plc, ("Elan") include InnoVaccines Corporation, which is developing delivery systems for oral and nasal vaccines and Endorex Newco, Inc., which is developing Elan's MEDIPAD(R) drug delivery system, a disposable microinfusion pump, for the delivery of iron chelation drugs to treat iron overload disorders such as Cooley's anemia, or beta-thalassemia. The Endorex share of research and development expenditures of these joint ventures is recorded as equity in losses from joint ventures.

Net interest income increased $110 thousand, or 107 percent, during the quarter as a result of the combination of higher interest rates and the investment of funds resulting from the $8.6 million private placement in April 2000, which yielded $7.8 million in net proceeds.

Endorex is a drug delivery company developing technologies for oral and mucosal delivery of drugs and vaccines to improve patient compliance, convenience and quality of life for therapies that can only be administered by injection. Additional information is available on the Endorex web site at www.endorex.com.

This press release contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that involve a number of known and unknown risks and uncertainties. These statements are only predictions and actual events or results in future periods may differ materially from what is currently anticipated. In particular, we cannot assure you that we will ever achieve any economic benefit from our patents, that we will be able to successfully commercialize products based on our technology, particularly in light of the significant uncertainty inherent in developing drug delivery products, conducting clinical trials and obtaining regulatory approvals, that our technologies will prove to be safe and effective, that we will be successful in maintaining our patent rights, that our InnoVaccines joint venture, our other joint venture, our collaboration with Schein Pharmaceutical, or our collaborations with other companies will successfully develop products or become profitable, that we will become profitable, that the option to purchase one of our cancer products will be exercised, that we will be able to obtain future financing, or that we will be able to carry out our current plans for 2000. In addition to the matters described in this press release, risk factors as described from time to time in Endorex's filings with the Securities and Exchange Commission, including, but not limited to, our most recent reports on Form 10-QSB and Form 10-KSB, may affect our financial results. We assume no obligation to update the information in this release.

Endorex Corporation 2000 Third Quarter Results
Through September 30, 2000

Results of Operation        Three Months               Nine Months
                             Ended 9/30                Ended 9/30
                         2000          1999         2000         1999
                         ----          ----         ----         ----
Revenues                 $  -          $  -         $  -         $  -

Research &
  development
  expenses            204,851       334,446      673,045    1,358,941
General &
  administrative
  expenses            491,739       836,821    1,473,260    2,576,567

Total Operating
  Expenses            696,590     1,171,267    2,146,305    3,935,508

  Operating Loss     (696,590)   (1,171,267)  (2,146,305)  (3,935,508)

Equity Losses in
  Joint Ventures     (622,849)     (492,580)  (2,201,705)  (1,984,431)
Net Interest Income   212,943       103,180      510,890      332,027
                     --------    ----------    ---------    ---------
Net Loss           (1,106,496)   (1,560,667)  (3,837,120)  (5,587,912)

Preferred stock
  dividends          (347,466)     (309,910)  (1,034,844)    (928,260)

Net Loss available
  to common
  shareholders     (1,453,962)   (1,870,577)  (4,871,964)  (6,516,172)

Basic & diluted
  net loss per
  share available
  to common
  shareholders        $ (0.11)      $ (0.17)     $ (0.41)     $ (0.61)


Average shares
  outstanding      12,741,858    10,755,319   12,009,995   10,755,319


Financial Position as of September 30, 2000
 Cash and securities                              $ 13,352,705
 Working capital                                    11,132,865
 Total assets                                       14,409,740
 Long-term debt                                        235,620
 Stockholders' equity & preferred stock             11,526,933

Stock Information as of November 7, 2000
 Symbol (Amex)                                             DOR
 Recent price                                           $ 2.50
 Shares outstanding                                 12,700,000
 Market capitalization                            $ 31,750,000