Enzo Biochem Reports Record Second Quarter Operating Results.

Business Editors

FARMINGDALE, N.Y.--(BUSINESS WIRE)--March 16, 2000

Enzo Biochem, Inc. (NYSE:ENZ), a leading biotechnology company specializing in gene identification and gene regulation technologies for diagnostic and therapeutic applications, announced today further gains in operating results for the three months and six months ended January 31, 2000.

For the fiscal second quarter ended January 31, 2000, total operating revenues increased to $11,564,000, compared with $11,001,000 in the corresponding period a year ago, an increase of 5.1%. Net income rose 15.3%, to $1,520,000, compared with $1,318,000 in the fiscal second quarter last year, and net income per share (both basic and fully diluted), increased 20%, to $0.06 per share, compared with $0.05 per share in the corresponding year-ago period.

For the fiscal first half, total operating revenues amounted to $23,176,000, compared with $21,525,000 in the corresponding period a year ago, an increase of 7.6%. Net income increased 50%, to $3,037,000, or $0.12 per share, compared with $2.023,000, or $0.08 per share, in the corresponding period a year ago.

"This has been another quarter of solid growth for our Company," said Barry Weiner, President of Enzo. "Revenue from research products continued to increase, despite the deferral of some orders to the current third quarter. Our clinical laboratory services business also posted an increase, and we held the line on expenses resulting in double-digit growth in net income. Our finances remain strong. And we continue to make important headway with new medical research products, particularly for the fast-expanding genomic market, as well as progress in the development of our therapeutic medicines. The outlook is very favorable."

Research product revenues for the year to date rose 11.5%. Clinical laboratory services revenues increased 3.6%. Expenditures for research and development rose slightly, to $2,514,000, from $2,297,000, and were more than offset by continued strength in operating revenues. On January 31, 2000, cash and cash equivalents totaled $46,541,000, an increase of $3,323,000 from the fiscal 1999 year-end six months earlier. Working capital amounted to $65,600,000 million and shareholders' equity totaled $81,710,000. There is no debt.

At Enzo Diagnostics, a new expanded gene labeling product line for the rapidly growing field of genomic analysis was introduced during the quarter. Enzo continues to play an expanding role in this market, fortified by an exceptionally strong patent position covering broad-based applications. Regardless of the ultimate ownership of genome information, demand for gene labeling products of the type Enzo manufactures and markets is expected to grow and remain a strong component of the DNA microchip and microarray fields.

In the genomic area, as well as the medical research market, Enzo Diagnostics occupies one of the fundamental positions as a product supplier, given its vast intellectual property estate. The new products, developed and manufactured by Enzo Diagnostics, provide researchers with greater versatility for sample labeling and extend the use of these proprietary products in DNA microchip assays. The line is designed to label, detect and identify gene sequences that are being analyzed with such methods as DNA microchip and other microarray methods, and is compatible with a wide range of manufacturers' microchip products.

In the area of gene-based therapeutics, Enzo scientists and collaborators reported at the Retroviruses and Opportunistic Infections Conference, held in February in San Francisco, that Enzo's HGTV43 vector has successfully delivered antisense genes efficiently and quickly to non-growing blood stem cells outside the human body and, following transduction, these genetically engineered cells survived in circulation and continued to produce antisense RNA. Enzo views this as a critical first step forward in the development of a gene medicine for the treatment of HIV-1 infection. Latest observations continue to support the initial findings.

The human clinical study based on Enzo's proprietary immune modulation therapy for patients suffering from hepatitis B, underway in Hadassah Hospital, in Jerusalem, Israel, continues to progress. Expanding its therapeutic technology platform, the Company recently announced receipt of a patent covering methods and material for correcting certain abnormalities in genes. This new technology provides Enzo with another unique approach for treating genetic-based diseases.

"The progress Enzo continues to make on all these fronts points to further significant activity and opportunities for the Company," said Mr. Weiner. "This is an exciting time for Enzo as it stands poised to capitalize on two decades of research and development."

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. The Company's proprietary labeling and detection products for gene sequencing and genetic analysis with approximately 200 patents worldwide are sold to the medical research market throughout the world. The Company's therapeutic division is conducting two human clinical trials, one for HIV-infected patients and one for patients infected, with hepatitis B virus. Other therapeutic applications of Enzo's proprietary technology are directed towards the treatment of cholesterol management, inflammatory bowel disease, including Crohn's disease and ulcerative colitis, and diabetes.

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 correct actual results.

                       ENZO BIOCHEM, INC.
              SELECTED STATEMENT OF OPERATIONS DATA

                               Six Months Ended    Three Months Ended
                                  January 31,          January 31,
                               2000        1999     2000        1999
                                   unaudited            unaudited
                                   ---------            ---------
                               (in thousands, except per share data)


Operating revenues           $23,176    $21,525    $11,564    $11,001

Income before provision
 for income taxes             $3,189     $2,139     $1,575     $1,376

Provision for income taxes     ($152)     ($116)      ($55)      ($58)
                               ------     ------      -----      -----
Net income                    $3,037     $2,023     $1,520     $1,318
                              ======     ======     ======     ======

Net income per common share
      - Basic                  $0.12      $0.08      $0.06      $0.05
                               =====      =====      =====      =====
Net income per common share
      - Diluted                $0.12      $0.08      $0.06      $0.05
                               -----      -----      -----      -----

Common Share - Basic          25,124     24,899     25,104     24,906

Common Share - Diluted        26,388     25,715     26,349     25,722



                            ENZO BIOCHEM, INC.
                        SELECTED BALANCE SHEET DATA


                                  January 31, 2000    July 31, 1999
                                   (In Thousands)     (In Thousands)
                                    (unaudited)


Cash and Cash Equivalents             $46,541             $43,218

Working Capital                       $65,600             $59,323

Stockholders' Equity                  $81,710             $75,648