Enzon reports third quarter results.

PISCATAWAY, N.J.--(BUSINESS WIRE)--May 20, 1996--Enzon, Inc. (NASDAQ\NMS:ENZN) announced today a net loss of $1,994,000 or $0.08 per share for the three months ended March 31, 1996 compared to a net loss of $664,000 or $0.03 per share for the comparable quarter in 1995.

The increase in the net loss was primarily due to a 43% decrease in revenues, related to a reduction in sales of clinical trial material and decreased contract revenue.

For the nine months ended March 31, 1996, the Company reported a net loss of $4,191,000 or $0.16 per share compared to a net loss of $5,799,000 or $0.24 per share for the same period last year. The decrease in the loss for the nine months was due to the one-time reversal to other income of the Sanofi advance during the previous quarter, as well as a reduction in total ongoing expenses of 10%, with the largest reduction occurring in the area of Selling, General and Administrative expenses.

Total revenues, which include sales, royalties and contract revenues for the quarter ended March 31, 1996 decreased by 43% to $2,735,000 as compared to $4,814,000 reported last year. Sales for the quarter decreased by 30% due to a reduction in clinical supply shipments of PEG-INTRON A. During June 1995, the Company amended its agreement with Schering Corporation and agreed to transfer know-how and manufacturing rights for PEG-INTRON A to Schering.

Contract revenues for the quarter ended March 31, 1996 also decreased by $896,000, principally as a result of a licensing payment recorded during the previous year under the Company's exclusive marketing rights license agreement with Rhone-Poulenc Rorer Pharmaceuticals, Inc. for ONCASPAR. A comparable payment was not recorded in the current quarter.

Research and Development expenses for the quarter ended March 31, 1996 increased by $372,000 or 18% to $2,470,000 as compared to $2,097,000 for the quarter ended March 31, 1995. The increase was primarily due to an increase in facility costs, which was the result of a one-time rent credit received in the prior year. Research and Development efforts continue to be focused on the Company's lead product candidate, PEG Hemoglobin, which is being developed as an enhancement to radiation treatment for patients diagnosed with cancerous hypoxic tumors.

The Company completed its Phase Ia clinical trial in healthy volunteers at the end of 1995, and received approval from the FDA to enter a multi-dose trial in cancer patients. Enrollment of patients for this trial has been unexpectedly slow, and as a result, the Company has just opened a second site and plans to add additional sites. The clinical supplies for the trial have been delivered to the open sites. To expedite completion of this trial, a clinical research organization will be utilized to accelerate patient recruitment, monitor the study, and compile results.

Selling, General and Administrative expenses for the quarter ended March 31, 1996 remained relatively flat at $1,536,000 compared to $1,537,000 for the quarter ended March 31, 1995.

The Company had cash on hand as of March 31, 1996 of $12,761,000 as compared to $4,725,000 in the prior year. 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.

"The recent appointment of Randy H. Thurman to the position of non-executive chairman of the board has significantly strengthened our management team," said Peter G. Tombros, president and chief executive officer. "This combined with our recent private placements further enhances our ability to secure a favorable partnership for our PEG Hemoglobin product, as well as expand the Company's strategic alliances."

Enzon is a biopharmaceutical company developing advanced therapeutics for life-threatening diseases through the application of its proprietary technologies. The Company's research and product development activities focus on blood substitutes, genetic diseases and cancer therapy. The Company also pursues commercialization of its technologies through strategic alliances, including arrangements with Rhone-Poulenc Rorer Pharmaceuticals Inc., Schering Corporation, Eli Lilly, Bristol-Myers Squibb, Inc. and Baxter Health Care. Enzon is headquartered in Piscataway, NJ. -0-

                        ENZON, INC. AND SUBSIDIARIES
               CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

                      Three Months Ended March 31, 1996 and 1995

                                          (unaudited)
                                      Three Months Ended
                           March 31, 1996       March 31,1995
                          __________________     __________________

Revenues
  Sales                         $ 2,729,647         $  3,912,273
  Contract revenue                    5,710              902,005
                                ___________           ___________
  Total revenues                  2,735,357            4,814,278
                                 ___________           ___________

Costs and expenses
  Cost of sales                     903,985              824,936
  Research and development
   expenses                       2,469,605            2,097,350
  Selling, general and
   administrative expenses        1,536,058            1,537,041
  Restructuring expense                -               1,192,971
                                  __________            ___________
Total costs and expenses          4,909,648            5,652,298
                                  __________           ___________

Operating loss                   (2,174,291)            (838,020)

Other income (expense)
  Interest and dividend income      116,259               78,069
  Interest expense                   (1,801)                (205)
  Other                              65,369               96,129
                                 __________           ____________
                                    179,827              173,993
                                 __________           ____________

Net loss                        ($1,994,464)           ($664,027)
                                 __________          ____________
Net loss per
  common share                       ($0.08)              ($0.03)
                                 __________          ____________
Weighted average number
  of common shares
  outstanding
  during the period              26,929,341           25,381,385
                               ============          ============

                         ENZON, INC. AND SUBSIDIARIES
                 CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
                 Nine Months Ended March 31, 1996 and 1995

                                          (unaudited)
                                      Nine Months Ended
                           March 31, 1996       March 31, 1995
                          __________________     __________________

Revenues
  Sales                        $ 8,080,671           $ 8,071,597
  Contract revenue                 910,446             2,802,005
                                ___________          ___________
  Total revenues                 8,991,117            10,873,602
                               ___________           ___________

Costs and expenses
  Cost of sales                  3,092,562             2,212,162
  Research and development
   expenses                      7,551,075             8,855,700
  Selling, general and
   administrative expenses       4,212,378             5,356,758
  Restructuring expense               -                1,192,971
                                 __________            ___________
Total costs and expenses        14,856,015            17,617,591
                                  __________           ___________

Operating loss                  (5,864,898)           (6,743,989)

Other income (expense)
  Interest and dividend income     300,338               166,814
  Interest expense                 (12,753)               (3,793)
  Other                          1,386,691               781,713
                                __________            ____________
                                 1,674,276               944,734
                                __________            ____________

Net loss                       ($4,190,622)           ($5,799,255)
                                __________          ____________
Net loss per
  common share                      ($0.16)               ($0.24)
                                __________          ____________
Weighted average number
  of common shares
  outstanding
  during the period              26,529,030           25,083,135
                               ============         ============

CONTACT: Enzon, Inc., Piscataway

Kenneth J. Zuerblis, [phone]