Enzon reports fiscal year results for 1996.

PISCATAWAY, N.J.--(BUSINESS WIRE)--Sept. 9, 1996--Enzon Inc. (NASDAQ\NMS:ENZN) announced today a net loss of $5,175,000 or $0.20 per share for the year ended June 30, 1996 compared to a net loss of $6,291,000 or $0.26 per share in fiscal year 1995.

The decrease in the net loss was primarily due to a 15% reduction in total expenses and an increase in other income which was offset in part by a reduction in contract revenue.

For the three months ended June 30, 1996 the company reported a net loss of $985,000 or $0.04 per share compared to a net loss of $492,000 or $0.02 per share for the same period last year. The increase in the net loss for the quarter ended June 30, 1996 was principally due to a decrease in contract revenues related to a one time $2,000,000 payment received in 1995 from the company's collaborative partner, Schering Corp., related to the amendment of the company's license agreement for PEG-INTRON A. During June 1995, the company amended its agreement with Schering Corp. and agreed to transfer know-how and manufacturing rights for PEG-INTRON A and sell 847,000 shares of common stock to Schering for $5,000,000 in payments.

Total revenues, which include sales, royalties and contract revenues for the year ended June 30, 1996 decreased by 20% to $12,681,000 as compared to $15,826,000 reported last year. Revenues for the year decreased due to the elimination of clinical supply shipments of PEG-INTRON A to Schering Corp., as well as a decrease in contract revenues as a result of the $2,000,000 payment recorded during the previous year related to the amendment of the company's license agreement with Schering. A comparable payment was not recorded in the current year. Revenues from the company's two FDA approved products, ADAGEN and ONCASPAR, continued to increase.

Research and Development expenses for the year ended June 30, 1996 decreased by $1,960,000 or 16% to $10,124,000 as compared to $12,084,000 for the year ended June 30, 1995. The decrease was primarily due to a reduction in personnel costs, particularly in the clinical and research administration areas, as the company's lead product, PEG-hemoglobin, moved from research to clinical trials.

As part of its cost containment program, the company is now utilizing a contract research organization (CRO) for the clinical development of PEG-hemoglobin, which is being developed as an enhancement to radiation treatment for patients diagnosed with cancerous hypoxic tumors. The company now believes its Phase Ib study for this product will conclude during the first quarter of 1997.

Selling, General and Administrative expenses for the year ended June 30, 1996 decreased by 13% to $6,010,000 as compared to $6,916,000 for the year ended June 30, 1995. The decrease was primarily due to staff reductions made over the last twelve months, as well as other cost containment measures taken by the company.

Other income for the year ended June 30, 1996 increased to $1,823,000 as compared to $994,000 in 1995. The increase was due to the one time recognition of $1,313,000 of non-cash other income during the year ended June 30, 1996 related to the unused portion of an advance received under the company's agreement with Sanofi Winthrop Inc. ("Sanofi") for the development of PEG-SOD. This advance was previously recorded as a current liability.

The company had cash on hand as of June 30, 1996 of $12,666,000 as compared to $12,761,000 for the previous quarter ended March 31, 1996. The company believes its current cash levels are sufficient to meet anticipated cash requirements, based on current spending levels, for approximately two years. The previous statement is forward-looking in nature. Actual results could differ materially based on various factors, including, but not limited to, the company's ability to maintain current sales levels of its products and current levels of expenses, or the occurrence of any of a number of unforeseeable contingencies beyond the company's control.

"I am proud to report that the company's adjusted monthly burn rate for the quarter ended June 30, 1996 was approximately $350,000, which is the lowest burn in five years. This monthly burn has been adjusted to not include the cash received from a one time gain related to the exercise of Neoprobe warrants during the fourth quarter," said Peter G. Tombros, president and chief executive officer. "Our cost containment efforts are on-going and we continue to utilize outside sources, such as a CRO for clinical trials, as a means of keeping costs down."

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. The company also pursues commercialization of its technologies through strategic alliances, including arrangements with Rhone-Poulenc Rorer Pharmaceuticals Inc., Schering Corp., Eli Lilly, Bristol-Myers Squibb, Inc. and Baxter Health Care. Enzon is headquartered in Piscataway. -0-

                       ENZON, INC. AND SUBSIDIARIES
               CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                  Three Months Ended June 30, 1996 and 1995

                                          (unaudited)
                                      Three Months Ended
                            June 30, 1996         June 30,1995
                          __________________    _________________

Revenues
  Sales                         $ 2,421,314         $  2,952,835
  Contract revenue                1,268,850            2,000,000
                                ___________           __________
  Total revenues                  3,690,164            4,952,835
                                ___________           __________

Costs and expenses
  Cost of sales                     452,779              706,575
  Research and development
   expenses                       2,572,450            3,228,260
  Selling, general and
   administrative expenses        1,798,261            1,559,635
                                 __________           __________

Total costs and expenses          4,823,490            5,494,470
                                 __________           __________

Operating loss                   (1,133,326)            (541,635)

Other income (expense)
  Interest and dividend income      149,517               70,034
  Interest expense                     (133)                (195)
  Other                                (715)             (20,440)
                                 __________           __________

                                    148,669               49,399
                                 __________           ___________

Net loss                          ($984,657)           ($492,236)
                                 __________           ___________
Net loss per
  common share                       ($0.04)              ($0.02)
                                 __________           ___________
Weighted average number
  of common shares
  outstanding
  during the period              27,705,497           25,481,385

                          ENZON INC. AND SUBSIDIARIES
                CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                      Years Ended June 30, 1996 and 1995

                                       Years Ended
                            June 30, 1996          June 30, 1995
                          __________________    __________________

Revenues
  Sales                        $10,501,985           $11,024,432
  Contract revenue               2,179,296             4,802,005
                                ___________          ___________
  Total revenues                12,681,281            15,826,437
                                ___________          ___________

Costs and expenses
  Cost of sales                  3,545,341             2,918,737
  Research and development
   expenses                     10,123,525            12,083,960
  Selling, general and
   administrative expenses       6,010,639             6,916,393
  Restructuring expense               -                1,192,971
                                __________           ___________
Total costs and expenses        19,679,505            23,112,061
                                __________           ___________

Operating loss                  (6,998,224)           (7,285,624)

Other income (expense)
  Interest and dividend income     449,855               236,848
  Interest expense                 (12,886)               (3,988)
  Other                          1,385,976               761,273
                                __________           ____________
                                 1,822,945               994,133
                                __________           ____________

Net loss                       ($5,175,279)
($6,291,491)
                                __________           ____________
Net loss per
  common share                      ($0.20)               ($0.26)
                                __________           ____________
Weighted average number
  of common shares
  outstanding
  during the period              26,823,142           25,184,718

CONTACT: ENZON Inc., Piscataway

Kenneth J. Zuerblis, 908/980-4717

Vice President, Finance and Chief Financial Officer