Titan Pharmaceuticals, Inc. announces first quarter 1996 financial results.

MENLO PARK, CA--(BUSINESS WIRE)--May 29, 1996--TITAN PHARMACEUTICALS, INC. (NASDAQ: TTNP, TTNPU, and TTNPW) today announced its financial results for the first quarter ended March 31, 1996.

For the first quarter ended March 31, 1996, the net loss increased 25% to $3,424,769 or $0.89 per share, compared with a net loss of $2,739,935 or $0.38 per share, for the quarter ended March 31, 1995. Titan reported research grant revenue for the quarter of $49,705. Although the operating expenses in the quarter ended March 31, 1996 were 34% lower than the same period in 1995, the total expenses were higher as a result of approximately $1.6 million in debt issuance and debt discount expenses associated with the repayment of bridge notes in January 1996.

During the first quarter of 1996, Titan completed its initial public offering ("IPO") of its securities which resulted in net proceeds to the Company of approximately $8,622,000, after payment of underwriting discounts, a non accountable expense allowance to the underwriter and other expenses of the offering and the repayment of the bridge notes and notes issued by Ingenex, Inc., the Company's majority-owned subsidiary. In February 1996, the underwriter of the Company's IPO exercised its overallotment option, resulting in net proceeds to the Company after discounts and commissions to the underwriter of $2,160,000. The Company believes that net proceeds of the IPO, together with available cash, will provide the necessary liquidity and capital resources to sustain its planned operations through mid-1997. However, the Company's capital requirements may change depending on numerous factors including, but not limited to, the progress of the Operating Companies' research and development programs, the results of clinical studies, the timing of regulatory approvals, technological advances, determinations as to the commercial potential of the Company's products, potential acquisition of new products or technology, and the status of competitive products.

Research and development expenses in the first quarter of 1996 declined 58% to $828,000 from $1,965,000 in 1995. This decrease reflects the deconsolidation of Ansan, Inc., effective August 1995, and the cessation of operations of Geneic Sciences, Inc. in September 1995.

Dr. Louis R. Bucalo, CEO and President of Titan Pharmaceuticals, Inc. stated, "Our financial results for the first quarter of 1996 are in-line with our expectations. Following the successful completion of our initial public offering in January, which assisted in significantly strengthening the Company's financial position, we focused our attentions on furthering our clinical development programs in the target areas of cancer, neurologic disorders and other life-threatening illnesses. Looking ahead to the second quarter, we anticipate taking further steps in our strategy to acquire and develop complementary therapeutic technologies and products."

Titan Pharmaceuticals is a biopharmaceutical company that develops proprietary therapeutics for the treatment of cancer, nervous system disorders and other serious and life-threatening diseases. The company's operations are currently conducted through four operating companies: Ansan (Nasdaq: ANSN, ANSNU), Ingenex, Theracell and ProNeura.

"Safe Harbor" Statement under the private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this release are forward looking statements that involve risks and uncertainties, including, but not limited to, product demand and market acceptance risks, the effect of economic conditions, the impact of competitive products and pricing, product development, commercialization and technological difficulties, capacity and supply constraints or difficulties, the results of financing efforts, actual purchases under agreements, the effect of the Company's accounting policies, and other risks detailed in the Company's Securities and Exchange Commission filings. -0-

                    TITAN PHARMACEUTICALS, INC.
                     (a development stage company)
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                             (In Thousands)

                                   Three Months Ended
                                         March 31,
                                     1995           1996

Grant revenue                      $  -- $        49,705
Costs and expenses:
   Research and development     1,964,563        827,898
General and administrative        677,112        921,193
Total costs and expenses        2,641,675      1,749,091

Loss from operations          (2,641,675)    (1,699,386)
Other income (expense):
   Equity in loss of Ansan, Inc.       --      (178,676)
   Interest income                16,527         76,422
   Interest expense             (114,787)    (1,623,129)
     Other income (expense)
      - net                      (98,260)    (1,725,383)
     Loss before minority
      interest                (2,739,935)    (3,424,769)
    Minority  interest  in
     losses of subsidiaries        --             --
     Net loss               $ (2,739,935)  $ (3,424,769)

Pro forma net loss per share   $   (0.38)       $ (0.89)

Shares used in
 computing proforma net
 loss per share                7,229,183      9,916,250
-0-

                      TITAN PHARMACEUTICALS, INC.
                     (a development stage company)
                       CONSOLIDATED BALANCE SHEETS

                                   March 31,  December 31,
                                     1996         1995
                                  (Unaudited)    (Note)
Assets:
Current Assets:
   Cash and cash equivalents     $ 304,733    $ 947,805
   Short-term investments        8,856,555           --
   Prepaid expenses and
    other current assets           118,516       40,071
   Receivable from Ansan, Inc.      66,348       57,791
     Total current assets        9,346,152    1,045,667
Furniture and equipment, net       773,387      848,852
Investment in Ansan, Inc.        1,411,150    1,589,826
Deferred stock offering costs       25,000      522,299
Deferred financing costs           142,604      600,183
Other assets                       125,344      125,344
                              $ 11,823,637  $ 4,732,171

Liabilities and Stockholder's Equity:
Current Liabilities:
   Accounts payable                787,429      714,896
   Notes payable by Ingenex.            --    1,500,000
   Notes payable by Titan
    Pharmaceuticals                     --    2,800,000
   Accrued legal fees              255,994      691,368
   Accrued sponsored research       94,081      304,202
   Other accrued liabilities       465,776      546,057
   Current portion of capital
    lease obligations              235,835      226,709
   Current portion of
    technology financing
       - Ingenex                   512,236      494,107
      Total current liabilities  2,351,351    7,277,339
Noncurrent portion of capital
 lease obligation                  684,646      747,142
Noncurrent portion of
 technology financing            1,154,252    1,289,313
Minority interest                1,241,032    1,241,032
Net capital deficiency:
   Preferred stock                      --   18,907,772
   Common stock                 35,271,919      745,476
   Additional paid-in capital    6,186,353    6,186,353
   Subscription receivable            (891)          --
   Deferred compensation          (396,000)    (418,000)
   Deficit accumulated
    during the
    development stage          (34,669,025) (31,244,256)
     Total net capital
      deficiency                (6,392,356)  (5,822,655)
                              $ 11,823,637  $ 4,732,171

CONTACT: Titan Pharmaceuticals Inc., Menlo Park

Louis R. Bucalo, M.D., CEO & President, 415/617-2090

or

Lippert/Heilshorn, New York

Investor Contact: Keith Lippert

or Jonathan Fassberg, 212/838-3777