InSite Vision reports 1995 first quarter financial results.

ALAMEDA, Calif.--(BUSINESS WIRE)--April 27, 1995--InSite Vision Incorporated (NASDAQ:INSV) today reported its financial results for the first quarter ended March 31, 1995. In the quarter, the company had revenues of $11,000 and a net loss of $3.6 million ($0.39 per share). These results compare with 1994 first quarter revenues of $30,000 and a net loss of $3.0 million ($0.33 per share). At March 31, 1995, InSite Vision had $14.4 million in cash and short term investments.

The first quarter results are consistent with company expectations. Compared with the same period in 1994, the 1995 decrease in revenues was due to the completion of a contract research program and the 1995 increase in the net loss primarily reflects higher research and development costs.

"As announced during the first quarter, our BetaSite(TM) eyedrop formulations of levobunolol have demonstrated success in a 670 patient Phase III clinical study for the treatment of glaucoma," said Kumar Chandrasekaran, Ph.D., InSite Vision's chairman and chief executive officer. "Most notably in the study, our 0.1% strength of BetaSite demonstrated significant efficacy in lowering intraocular pressure and was nearly as effective as the highest strength of conventional levobunolol eyedrops currently on the market." As a result, InSite Vision is proceeding with plans to file for FDA approval to market BetaSite.

"During the first quarter, we also completed patient enrollment in the second Phase III study of our PilaSite(R) eyedrop formulation of pilocarpine for glaucoma therapy," Dr. Chandrasekaran continued. "We expect treatment results to be available this summer." In the first Phase III study, PilaSite eyedrops used twice daily were shown to be as effective in lowering intraocular pressure as conventional pilocarpine eyedrops given four times a day.

InSite Vision is an ophthalmic pharmaceutical company focused on the development and potential commercialization of improved and entirely new eye medications based on its proprietary DuraSite(R) drug delivery platform, which is designed to provide sustained drug delivery to the eye. -0-

InSite Vision Incorporated

Condensed Consolidation Statements of Operations
(in thousands, except per share amounts)

                                        March 31            March 31
                                          1995                1994
                                        --------            --------

Revenues                               $     11            $    30

Costs and Expenses:
   Research and development               2,475               2,006
   General and administrative             1,210               1,225

Total costs and expenses                  3,685               3,231

Loss from operations                     (3,674)             (3,201)
Interest and other income, net              106                 237
Net loss                               $ (3,568)           $ (2,964)

Net loss per share                     $  (0.39)           $  (0.33)
Shares used to calculate
 net loss per share                       9,115               8,950

Condensed Consolidated Balance Sheets
(in thousands)

                                        March 31            Dec. 31
                                          1995                1994
                                        --------            --------
Assets:

Cash and short term investments        $ 14,357            $ 17,546
Property and equipment, net               3,043               3,014
Prepaid expenses                            528                 706
Total assets                           $ 17,928            $ 21,266

Liabilities and stockholders' equity:

Current Liabilities                    $  2,140            $  1,983
Other liabilities                         1,144               1,330
Stockholders' equity                     14,644              17,953
Total liabilities and equity           $ 17,928            $ 21,266

CONTACT: InSite Vision

Carol D. DeGuzman, 510/865-8800