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WISCONSIN PHARMACAL ANNOUNCES NEW CHARTEX AGREEMENT ON FEMALE CONDOM AND THIRD QUARTER RESULTS

 WISCONSIN PHARMACAL ANNOUNCES NEW CHARTEX AGREEMENT
 ON FEMALE CONDOM AND THIRD QUARTER RESULTS
 JACKSON, Wis., Aug. 13 /PRNewswire/ -- John A. Wundrock, R.Ph., president and CEO of Wisconsin Pharmacal Co., Inc., announced that the company had reached a new agreement with Chartex International, the London-based licensor of Wisconsin Pharmacal's female condom -- REALITY(R). Under the terms of the agreement, Wisconsin Pharmacal has agreed to deliver 200,000 shares of its common stock to Chartex and to register the shares for sale by Chartex. The proceeds of the sale of these shares will be applied to the approximately $2.9 million exclusivity payment due Aug. 31, 1992. If and when the proceeds from a sale reach the $2.9 million due, Chartex will return the excess shares or cash over $2.9 million to the company. Wisconsin Pharmacal agreed to make up the shortfall, if any, and has the option of doing so by the issuance of additional shares or cash.
 With the signing of this agreement with Chartex, Wisconsin Pharmacal retains its exclusive rights to market REALITY(R) in the United States and Canada. In that regard, the company is holding discussions with several large healthcare companies as potential marketing partners for REALITY(R) in those countries.
 Wundrock indicated that he was pleased with the recently concluded agreement in that it facilitates the close co-operation necessary between the two companies to capitalize optimally on the U.S. and Canadian markets.
 Wisconsin Pharmacal has an exclusive license to market the female condom, under the trademark REALITY(R), in the United States, Canada and Mexico, and an option to license the product for Argentina. The female condom will be marketed under the global trademark FEMIDOM(R) outside those territories.
 According to Chartex International, FEMIDOM(R) was first marketed in Switzerland in February 1992 and the results to date are very positive. Independent market research carried out shortly after launch indicated that 68 percent of women surveyed were aware of the product and that 45 percent of those who had tried the product intended to re-purchase.
 The marketing of FEMIDOM(R) will begin in England at the end of September. The product will be rolled-out through the rest of Europe over the following 12 months.
 The company also reported net revenues for the third quarter ending June 30 totalling $4,036,926, a decrease of 36 percent over the same prior year period. The company incurred a net loss of $3,339,514 for the third quarter or ($0.95) per share compared to net income of $662,000 or $0.20 per share for the prior year quarter. Year-to-date revenues totalled $9,281,676, a decrease of 16 percent compared to 1991. Year-to-date, the company reported a net loss of $3,403,949 or ($0.99) per share versus net income of $579,000 for the same period in 1991, or $0.18 per share. The third quarter and year-to-date 1992 results reflect a $2,878,110 non-cash charge to record the accrual for the payment of stock to Chartex permitting the company to retain its exclusivity rights to market REALITY(R) in the United States and Canada. Without this charge, third quarter 1992 results were a net loss of ($461,404) or ($0.13) per share and year-to-date results were a net loss of ($525,839) or ($0.15) per share.
 Wundrock indicated that third quarter and year-to-date sales and earnings were negatively impacted by unseasonal weather and recession related factors. The very late and cool spring and summer experienced by much of the northern U.S. resulted in sharp reductions in third quarter sales of the company's outdoor, leisure-time products. Sales of the REPEL(R) (the company's largest selling product) insect repellent line were down 51 percent for the third
quarter and 32 percent year-to- date. Year-to-date sales of BAITMATE(R) fish attractant increased 23 percent over the prior year primarily due to the introduction of the company's BAITMATE(R) Ultimate Baits biodegradable fishing lures.
 According to Wundrock, aside from the REPEL(R) line revenue decrease and the accrual for the REALITY(R) exclusivity payment, the year-to-date earnings decline is primarily attributable to the following other factors which totalled $942,000: increased expenses related to the development of the company's REALITY(R) female condom, BAITMATE(R) Ultimate Baits introduction costs, a decrease in interest income and the cessation of Disposer Care royalties. Earnings were positively impacted by the effects of the January 1992, settlement of a fish attractant patent infringement lawsuit. Since the settlement resulted in less than the $2,000,000 provision recorded in fiscal 1991, the company recorded non-recurring 1992 income of $687,458.
 Wundrock said, "The spending of $795,811 on REALITY(R) development and $2,878,110 on the exclusivity payment to Chartex this year, without corresponding revenues, is an indication of the company's commitment to obtaining FDA approval and bringing REALITY(R) to the marketplace."
 As announced last week, the company submitted additional REALITY(R) information to the U.S. Food and Drug Administration as scheduled on July 31, 1992. This information was requested at an FDA Advisory Panel meeting on Jan. 31, 1992, and in subsequent FDA correspondence. At the Jan. 31 session, the panel voted unanimously to recommend FDA approval of REALITY(R) contingent on the provision of satisfactory information. The data submitted met company expectations and included results of the completed pregnancy study and the other requested data.
 WISCONSIN PHARMACAL COMPANY, INC.
 Condensed Consolidated Operating Results
 (Unaudited)
 Three months ended June 30, 1992 1991
 Revenues
 Product Sales $4,033,045 $6,219,000
 Royalties 3,881 75,000
 Total $4,036,926 $6,294,000
 Operating Income (loss) $(3,156,563) $ 779,000
 Net Income (loss) $(3,339,514) $ 662,000
 Weighted average number of
 common and dilutive common
 equivalent shares outstanding 3,522,201 3,306,654
 Net Income (loss) per common
 and dilutive common equivalent
 share $(0.95) $0.20
 NOTE: Included above as a charge (credit) to earnings are the following items:
 -- research and new product
 development expenditures
 related to the company's
 female condom product $411,293 $152,622
 -- Patent Infringement lawsuit
 provision reversal -- --
 -- REALITY(R) exclusivity charge $2,878,110 --
 Nine months ended June 30, 1992 1991
 Revenues
 Product Sales $9,202,795 $10,861,000
 Royalties 78,881 225,000
 Total $9,281,676 $11,086,000
 Operating Income (loss) $(2,982,688) $ 824,000
 Net Income (loss) $(3,403,949) $ 579,000
 Weighted average number of
 common and dilutive common
 equivalent shares outstanding 3,442,675 3,283,615
 Net Income (loss) per common
 and dilutive common equivalent
 share $(0.99) $0.18
 NOTE: Included above as a charge (credit) to earnings are the following items:
 -- research and new product
 development expenditures
 related to the company's
 female condom product $795,811 $394,894
 -- Patent Infringement lawsuit
 provision reversal $(687,458) --
 -- REALITY(R) exclusivity charge $2,878,110 --
 -0- 8/13/92
 /CONTACT: John A. Wundrock, president and CEO of Wisconsin Pharmacal, 414-677-4121 (company information); Dr. Mary Ann Leeper, senior vice president, research and development, 312-280-8541, for Reality(R) Product Information/ CO: Wisconsin Pharmacal Co., Inc. ST: Wisconsin IN: MTC SU: ERN


SM -- NY013 -- 9479 08/13/92 09:07 EDT
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