Human Genome Sciences reports 1996 financial results.

ROCKVILLE, Md.--(BUSINESS WIRE)--February 21, 1997--Human Genome Sciences, Inc. ("HGS") (NASDAQ: HGSI) today reported revenues of $36.5 million and a net loss of $7.8 million, or $0.42 per share, for the year ended December 31, 1996 compared to revenues of $5.0 million and a net loss of $31.1 million, or $1.98 per share, for the year ended December 31, 1995. The 1996 revenue consisted of $6.9 million upon the achievement of Milestone III pursuant to the Collaboration Agreement with SmithKline Beecham; $17.5 million in initial annual license and research fees from genomics collaborations with Schering- Plough Corporation, Merck KGaA and Synthelabo; $12.1 million in license and research payments pursuant to additional collaboration agreements with Pharmacia & Upjohn Company ("Pharmacia"), F. Hoffmann-La Roche, MedImmune, Inc. and OraVax and Pasteur MJrieux Connaught ("OraVax"), and Pioneer Hi-Bred International ("Pioneer"). Cash and short-term and long-term investments totaled $117.8 million, including $1.7 million of restricted cash, at December 31, 1996.

For the fourth quarter ended December 31, 1996, HGS recorded a net loss of $9.5 million, or $0.51 per share, compared to a net loss of $10.3 million, or $0.57 per share, during the fourth quarter ended December 31, 1995. Revenues of $3.0 million in the fourth quarter of 1996 were from new collaborations entered into with Pharmacia and OraVax plus continuing revenues from Pioneer. There were no revenues in the fourth quarter 1995.

Melvin D. Booth, President and Chief Operating Officer noted, "Our fourth quarter and full year results were in line with management's expectations. Our research and development investment is now directed to drug discovery and preclinical development programs, as well as to maintaining a leadership position in gene sequencing."

Any statements released by Human Genome Sciences, Inc. that are forward looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that forward looking statements involve risk and uncertainties which may affect the company's business prospects and performance. These included economic, competitive, governmental, technological and other factors discussed in the company's filings with the Securities and Exchange Commission on forms 10-K and 10-Q.

Human Genome Sciences, Inc. is a company with the mission to develop products to predict, prevent, detect, treat and cure disease based on its leadership in the discovery and understanding of human and microbial genes. -0-

                      SELECTED FINANCIAL DATA

                                   Year Ended       Three Months Ended
                             12/31/96    12/31/95    12/31/96    12/31/95
        (In thousands, except per share data)

Statement of Operations Data:
Revenue-Research and
 development collaborative
 contract revenue          $  36,460    $  5,000     $  3,016    $     0
Costs and expenses:
Research and development:
 Direct expenditures          30,409      22,904        8,964      6,626
 Payments under research
  services agreement          10,063      10,075        2,515      2,714
General and administrative     9,639       8,745        2,586      2,370
Net interest income           (6,092)     (4,005)      (1,561)    (1,414)
Loss before taxes             (7,559)    (32,719)      (9,488)   (10,296)
Provision (benefit) for
 income taxes                    208      (1,651)          19          0
Net loss                   $  (7,767)   $(31,068)    $ (9,507) $ (10,296)

Net loss per share         $   (0.42)   $  (1.98)    $  (0.51) $   (0.57)

Weighted average number of
   shares outstanding     18,630,986  15,723,144   18,744,485 18,097,296
-0-
                                    December 31, 1996   December 31, 1995
Balance Sheet Data:
Cash, cash equivalents, short-term
 and long-term investments (a)       $   117,821         $   107,462
Total assets                             140,117             126,963
Total debt and capital leases, less
 current portions                          2,954               4,332
Total stockholders' equity               128,521             115,606

(a) Includes $1,705 and $2,000 in restricted cash at December 31,
1996 and December 31, 1995, respectively.

CONTACT: Melvin D. Booth

President and Chief Operating Officer

Human Genome Sciences, Inc.

301/309-8504

or

Steven C. Mayer

Senior Vice President and Chief Financial Officer

Human Genome Sciences, Inc.

301/309-8504