EntreMed Inc. reports fiscal 1996 year-end results and receives U.S. patent.

ROCKVILLE, Md.--(BW HealthWire)--March 24, 1997--EntreMed Inc. (NASDAQ:ENMD) today reported operating results for its fourth quarter and fiscal year ended Dec. 31, 1996.

Revenues for the fourth quarter ended Dec. 31, 1996 were $1,347,500 vs. $577,257, up 133 percent from the comparable period a year ago. The company reported a net loss of $1,250,400, or $(.10) per share, for the fourth quarter ended Dec. 31, 1996, as compared with a net loss of $2,575,293, or $(.35) per share, for the same period last year.

For the year ended Dec. 31, 1996, the company reported revenues of $4,625,000 vs. $711,169 for the 1995 fiscal year, an increase of 550 percent. The company reported a net loss of $4,769,832, or $(.49) per share, for the 1996 fiscal year vs. a net loss of $7,708,219, or $(1.06) per share, last year. At Dec. 31, 1996, the company had cash, cash equivalents and short-term investments of approximately $52,721,000.

EntreMed Chairman of the Board, President and Chief Executive Officer Dr. John W. Holaday commented on the company's financial performance: "The significant increase in the company's revenues resulted primarily from the collaborative agreement we entered into with the Bristol-Myers Squibb Company in December 1995. These funds have enabled EntreMed to expand research in the angiogenesis area. In particular, our mid-December announcement regarding the discovery of Endostatin(tm) protein, another novel naturally occurring antiangiogenic protein, is an encouraging new development in the field of angiogensis research. We are excited about prospects for its use alone or in combination with Angiostatin(tm) protein as a first line therapy. We believe that Endostatin(tm) protein is a significant addition to our existing, diverse portfolio of cancer therapy drug candidates."

Holaday also highlighted another notable company development, stating: "Our first U.S. patent covering our cell permeation technology has been granted by the U.S. Patent and Trademark Office. This technology enables the addition of inositol hexaphosphate (IHP) into red blood cells to enhance oxygen delivery in cardiorespiratory diseases. We believe this important issuance, coupled with the company's strong financial performance during 1996, has enhanced our position in seeking an appropriate strategic collaborative partner for our second core technology (IHP)."

Rockville-based EntreMed Inc., an innovative biopharmaceutical company, develops products that address the role of blood and blood vessels in health and disease. The company is a leader in the field of antiangiogenesis research, which involves the inhibition of abnormal blood vessel growth believed to be associated with a broad range of diseases. The company's strategy is to accelerate development of its current core technologies, angiogenesis and cell permeation. EntreMed also seeks to identify and acquire new technologies through sponsored research programs with university medical facilities, research companies and government laboratories. EntreMed anticipates commercialization of its products through strategic partnerships with major pharmaceutical companies. In December 1995, EntreMed forged a strategic partnership with Bristol Myers-Squibb Company to further the preclinical and clinical development of Angiostatin(tm) protein and Thalidomide. -0-

                        ENTREMED INC.
                 SUMMARY OF OPERATING RESULTS

                           Three Months Ended         Year Ended
                                 Dec. 31                Dec. 31,
                           1996          1995       1996       1995

Total revenues         $1,347,500  $   577,257 $ 4,625,000 $   711,169

Research & development
 expense                1,814,782    2,065,049   7,553,793   5,939,512

General &
 administrative         1,470,844    1,079,638   3,435,501   2,458,976

Net loss              $(1,250,400) $(2,575,293)$(4,769,832)$(7,708,219)

Net loss per share    $      (.10) $      (.35)$     (0.49)$     (1.06)

Weighted average
 number of shares
 outstanding           11,999,368    7,340,000   9,745,503   7,271,943

Statements herein that are not descriptions of historical facts are forward-looking and subject to risk and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors, including those set forth in the company's Securities and Exchange Commission filings under "Risk Factors," including risks relating to the early stage of products under development; uncertainties relating to clinical trials' dependence on third parties' future capital needs; and risks relating to the commercialization, if any, of the company's proposed products (such as marketing, safety, regulatory, patent, product liability, supply, competition and other risks).

CONTACT: EntreMed Inc., Rockville

Dr. John W. Holaday, chairman/CEO

Nelson Campbell, CFO

301/217-9858

or

Susan J. Lewis, 301/738-2495