Enzo Biochem Reports Increased First Quarter Revenues, Net Income.

FARMINGDALE, N.Y.--(BUSINESS WIRE)--Dec. 15, 1998--Enzo Biochem, Inc., (ASE:ENZ) a leading biotechnology company specializing in gene regulation and gene identification technologies for diagnostic and therapeutic applications, today reported record revenues and net income for the first quarter ended October 31, 1998.

Reflecting gains in both research product shipments and clinical laboratory services, revenues for the first fiscal quarter rose 13%, to $10,524,000, from $9,314,000 in the corresponding year ago period. Income before interest income and provision for taxes on income almost doubled, and net income for the quarter gained 35%, to $705,000, from $523,000. Per share net income rose 50%, to $0.03 per share, from $0.02 per share in the corresponding year-ago period.

Working capital on October 31, 1998 stood at $53,785,000, including cash and cash equivalents of $39,249,000. Stockholders capital increased to $69,546,000. There was no long-term debt.

An increase in the mix of higher priced sales from the Company's non-exclusive distribution agreements benefited research product sales. At the same time, the gain in revenues at the clinical reference laboratory operations resulted from increases in higher priced screening and esoteric testing.

"The results in the first quarter reflect the success of our Company's strategy to develop ongoing revenue producing business activities that complement and benefit from our basic technologies, while Enzo continues its aggressive program involving the application of our proprietary gene regulation capabilities," said Barry Weiner, President. "Not only are we among the few biotech companies to achieve profits, but our strong, highly liquid balance sheet and positive cash flow are able to facilitate our research and development efforts in both therapeutics and diagnostics."

Enzo Biochem is currently conducting human clinical trials to test its antisense-based HGTV43 product designed to protect human immune cells from infection by a broad spectrum of diverse strains of HIV-1, the virus that causes AIDS. Also under study are other antisense products aimed at managing cholesterol and treating hepatitis B, as well as products based on immune modulation for treating diseases such as hepatitis, Crohn's Disease and colitis, and facilitating bone marrow transplantation.

Enzo Biochem is engaged in the research, development and manufacture of innovative health care products based on molecular biology and genetic engineering techniques, and in providing diagnostic services to the medical community.

Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. -0-

                          ENZO BIOCHEM, INC.
                 SELECTED STATEMENT OF OPERATIONS DATA

                                      Three Months Ended
                                          October 31,
                                      1998           1997
                                           unaudited

                                         (in thousands,
                                      except per share data)

Operating revenues                 $10,524         $9,314

Income before provision for
     income taxes                     $763           $568

Provision for income taxes            $(58)          $(45)
                                      -----          -----

Net income                            $705           $523
                                      ====           ====

Net income per common share -
      Basic                          $0.03          $0.02
                                     =====          =====

Net income per common share -
      Diluted                        $0.03          $0.02
                                     =====          =====

Common share - Basic                24,891         24,516
                                    ======         ======
Common share - Diluted              25,704         25,507

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