Enzo Biochem Reports Strong Gains in Third Quarter Results.

FARMINGDALE, N.Y.--(BUSINESS WIRE)--June 14,1999--

Enzo Biochem, Inc. (ASE:ENZ), a leading biotechnology company specializing in gene identification and gene regulation technologies for diagnostic and therapeutic applications, today reported further strong gains in revenues and net income for the third quarter and nine months ended April 30, 1999.

For the third quarter ended April 30, 1999, total revenues increased by 14%, to $12,193,000, from $10,697,000 in the corresponding year earlier period. Net income advanced 86%, to $1,682,000, or $0.07 per share, from $903,000, or $0.04 per share, in the corresponding year earlier period.

The gain in third quarter revenues showed a 43% increase in sales of products for gene analysis, labeling and sequencing for the research market. The Company said that the increases resulted from additional distribution and the expanding scope of its proprietary gene-based research products. Selling, general and administrative expenses as a percentage of revenues for the quarter improved to 20.3% from 24.3%. The increase in research products revenue resulted in an increase in gross profit margins of 53% from 39.5% from the previous year. The Company's positive cash flow from operations has continued to improve from the prior year and has consistently improved each quarter of this current fiscal year.

For the nine month period ended April 30, 1999, total revenues rose 11.1%, to $33,718,000, compared with $30,337,000 in the corresponding year earlier period. Net income was up 86.8%, to $3,705,000, or $0.15 per share, compared with $1,984,000, or $0.08 per share, a year earlier.

Working capital at the end of April 1999 amounted to $57,278,000, increasing by over $4 million over the nine month period, including cash and cash equivalents of $41,863,000 which increased by $8.3 million for the nine months. Stockholders' equity totaled $72,655,000. There is no long-term debt.

"The continued growth of our labeling products for genetic sequencing and the diagnostic medical research markets is a measure of both our strenuous marketing efforts and broadening recognition by companies active in areas where Enzo has extensive primary patent positions," said Barry Weiner, President.

"We are demonstrating this year that our Company's vast patent estate in gene labeling, diagnostics and sequencing is a valuable revenue-generating asset that continues to help propel Enzo's growth and provide important funding for our promising therapeutics research and product development programs. Enzo continues to achieve important progress in the therapeutic area utilizing our proprietary gene regulation technology, as well as our immune modulation technology," Mr. Weiner added.

Enzo Diagnostics -- Sales for the quarter increased to $4,928,000, compared with $3,441,000 in the corresponding year earlier period, and for the nine months totaled $12,275,000, compared to $9,457,000 for the prior year. The increase in research product sales resulted primarily from the company's non-exclusive distribution agreements with suppliers of gene analysis and DNA labeling and detection products. Enzo currently manufactures over 200 products, featuring on the label the Company's name and logo either individually or jointly with our distributors. The Company's strategy directed at selling products into the two distinct research markets -- gene analysis and DNA labeling -- continues to be highly effective, resulting in new distributors coming on board. Revenues from a number of distributors have yet to reach their full potential. Additional distributor relationships to further penetrate markets covered by Enzo Diagnostics products are in discussion. The company continues in its effort to position itself to participate in the $2 billion clinical diagnostics market through its proprietary technology and products.

Enzo Clinical Labs -- In a market characterized by changing reimbursement policies of third party providers, relative maturity and industry consolidation, Enzo Clinical Labs continued to maintain its strong position. For the nine months revenue increased approximately 2.3%, to $21,443,000. Unit profitability continues satisfactorily, reflecting an ongoing program aimed at maintaining the highest margined accounts and broadening the range of tests provided. Enzo Labs completed installation of a new computer system, which in addition to assuring Y2K compatibility, also is expected to enhance the laboratories' technical capabilities and provide expanded patient information data retrieval capacity and improved efficiency. The new computer system is expected to further promote service to physician clients.

Enzo Therapeutics -- Research and development efforts continue to demonstrate progress. R&D expenses for the nine months continued to increase as we expand our therapeutic research and development programs.

At the prestigious joint meeting of the American Association of Gastroenterology and the American Association for the Study of the Liver, Dr. Yaron Ilan, of Hadassah University in Jerusalem, discussed, as previously reported, successful laboratory efforts controlling the anti-viral immune response to hepatitis B using Enzo's proprietary immune modulation technology. This effort represents a new cornerstone to the Company's aggressive therapeutic development program, and presents another area in medicine where we believe Enzo can eventually offer a viable alternative to present treatment modalities. An estimated 350 million individuals are chronically infected with hepatitis B and therefore at risk of death from liver disease. The collaborative work between Dr. Ilan and Enzo was based on Enzo proprietary immune modulation techniques for the treatment of infectious diseases. The Company is currently awaiting approval to begin human clinical studies on a product for the treatment of acute chronic hepatitis based on this research. Also under preparation is a submission for the start of human studies for graft vs. host disease, a condition that affects individuals who have undergone organ or bone marrow transplantation. Additionally, a submission is under preparation to begin human studies on a product for the treatment of Crohn's disease.

Clinical studies involving Enzo's genetic modulation treatment for persons infected by HIV are satisfactorily proceeding and on schedule. The promise of this product continues to demonstrate itself following on pre-clinical studies that affirm that human cells containing Enzo's gene modulating construct have maintained their resistance to the virus for almost four years. Mr. Weiner stated, "We are excited by the performance of these pre-clinical studies and look forward to the conclusion of the Phase I trials to fully assess this innovative treatment."

Mr. Weiner concluded, "The performance of the Company for the first nine months of this year has moved to solidify its position both financially and technologically giving the Company independence to pursue its product development directions. Today, our diversified technological base is providing a platform for an extensive pipeline of proprietary products for medical research and gene sequencing. Our strategic position in gene-based technologies is gaining increased recognition and generating rising revenues and profits. Enzo is emerging as a leader in gene modulation therapeutics and demonstrating a strong presence in a new area of immune modulation therapeutics for treating a variety of chronic diseases. Management is committed to fulfilling the potential of the Company's product pipeline and is enthusiastic as to the promise it holds, and, at the same time, being driven by increasing shareholder value."

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

                              Nine Months Ended     Three Months Ended
                                April 30,                April 30,
                                   1999       1998       1999    1998
                                       unaudited          unaudited
                                       ---------          ---------
                                (in thousands, except per share data)

Operating revenues              $33,718     $30,337   $12,193  $10,697

Income before provision for
     income taxes                $3,858      $2,085    $1,719     $956

Provision for income taxes       ($153)      ($101)     ($37)    ($53)
                                 ------      ------     -----    -----

Net income                       $3,705      $1,984    $1,682     $903
                                 ======      ======    ======     ====

Net income per common share -
      Basic                       $0.15       $0.08     $0.07    $0.04
                                  =====       =====     =====    =====

Net income per common share -
      Diluted                     $0.15       $0.08     $0.07    $0.04
                                  -----       -----     -----    -----

Common Share - Basic             24,901      24,483    24,907   24,463
Common Share - Diluted           25,520      25,550    25,530   25,530


                                       ENZO BIOCHEM, INC.
                                  SELECTED BALANCE SHEET DATA

                                      April 30, 1999   July 31, 1998
                                      (In Thousands)   (In Thousands)
                                        (unaudited)


Cash and Cash Equivalents                 $41,863         $33,543

Working Capital                           $57,278         $52,973

Stockholders' Equity                      $72,655         $68,783