Enzon's CEO and chairman of the board address shareholders at the 1996 Annual Meeting.

Piscataway, N.J.--(BUSINESS WIRE)--December 3, 1996--Enzon, Inc. (NASDAQ:ENZN) held its 1996 Annual Meeting of Shareholders this morning. At the meeting Randy H. Thurman, Enzon's non-executive chairman of the Board and Peter G. Tombros, Enzon's president and CEO, discussed the progress made by the Company during the past year as well as future milestones.

Accomplishments noted among the milestones achieved were improvement in the burn rate and cash balance, which is now sufficient for at least two years, The completion of a Phase I trial for PEG-Hb, the Company's hemoglobin-based oxygen carrier, the initiation of a new Ib trial for PEG-Hb, and the receipt of a $1 million milestone payment from Schering Corporation for transferring to Schering the technology for the manufacture of PEG INTRON-A.

In October, the Company secured Medac GmbH, a German pharmaceutical company, to market ONCASPAR in Europe and Russia. Medac will conduct clinical trials for new indications, such as front line therapy of acute lymphoblastic leukemia (ALL), adult ALL, non-Hodgkin's lymphoma and AIDS related lymphoma, as well as obtain registrations for the remaining countries where the product is not yet approved. Medac will purchase ONCASPAR at a price that escalates over the term of the agreement and make minimum annual purchases after the first year. This complements the on-going clinical development program by Rhone-Poulenc Rorer Pharmaceuticals, Inc. (RPR) in North America. RPR has advanced their clinical trials for additional indications for ONCASPAR. Additional indications currently being researched include adult ALL, AIDS related lymphoma and non-Hodgkin's lymphoma. The combination of Medac and RPR's programs result in a global development strategy for ONCASPAR.

A review of strategic alliances included an update on Enzon's agreement with the Green Cross Corporation, a Japanese pharmaceutical company, for recombinant Human Serum Albumin, (rHSA). It was recently disclosed that the product is currently in Phase III clinical trials in Japan as a blood volume expander. The market in Japan for HSA is approximately $400 million. While the agreement entitles Enzon to a customary pharmaceutical royalty on product sales, Green Cross has requested reduction of the royalty. Enzon is considering all its options under the agreement.

Mr. Tombros also summarized the significant progress made by licensees and academic institutions who are developing products that utilize Enzon's proprietary Single-Chain Antigen-Binding (SCA ) protein technology. Current licensees of this technology include global pharmaceutical companies such as Bristol Myers Squibb Co., the Gencell division of RPR, Baxter Healthcare Corporation and Eli Lilly & Company.

Mr. Tombros stated that eight products that utilize the SCA protein technology have advanced to the IND/Phase I/II stage of clinical development for cardiopulmonary bypass surgery and cancer indications. Details of potential applications of SCA protein technology were also presented at the meeting along with the information that Cambridge Antibody Technology Limited (CAT), a British biomedical company, has licensed the SCA protein technology from Enzon. CAT is a leader in phage display technology, which allows rapid isolation of fully-human SCA proteins with no need for costly "humanization" procedures. CAT plans to use SCA protein technology in research and product development programs for cancer and other indications. Under the agreement, Enzon received an upfront payment and is entitled to future milestone payments and royalties on product sales.

"The progress made in product development by our licensees, as well as the potential for additional partnerships and royalties, further confirms the value of Enzon's technologies," stated Peter G. Tombros. "We believe the current market capitalization of Enzon recognizes only the value of currently approved products and our cash position. When viewed in the context of our pipeline, extensive alliances and co-development agreements, the potential value of Enzon is significantly greater."

Enzon is a biopharmaceutical company developing advanced therapeutics for life-threatening diseases through the application of its proprietary technologies. The Company's research activities are focused primarily in the area of oncology, including the development of a hemoglobin-based oxygen carrier as an enhancement to radiation therapy of solid tumors. Enzon has two FDA approved products -- ADAGEN, a treatment for Severe Combined Immunodeficiency Disease and ONCASPAR, for the treatment of acute lymphoblastic leukemia, which is being marketed by RPR. The Company also pursues commercialization of its proprietary technologies through strategic partnering. Enzon is headquartered in Piscataway, N.J.

Except for the historical information herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based upon a number of factors, including without limitation, risks in obtaining and maintaining regulatory approval, market acceptance of and continuing demand for Enzon's product and the impact of competitive products and pricing.

Contact: Enzon, Inc.

Kimberly Cooper, 908/980-4577

http://www.enzon.com