Xytronyx Reports Second Quarter 1995 Results.

SAN DIEGO--(BUSINESS WIRE)--November 7, 1994--Xytronyx Inc. (AMEX: XYX) today announced results for the Second Quarter ended September 30, 1994.

Revenues for the Second Quarter ended September 30, 1994 were $146,000, compared to $68,000 for the same period of the prior year. Net results were a loss of $902,000, or $0.18 per share, compared to a loss of $834,000, or $0.21 per share, for the second quarter of the prior year. Xytronyx also noted that the current quarter results include $102,000 in costs incurred relating to the U.S. clinical trials of the Periodontal Tissue Monitor kit and $145,000 in costs related to obtaining approval for the Periodontal Tissue Monitor kit from the Public Health Ministry of the People's Republic of China.

Revenues for the six months ended September 30, 1994 were $1,101,000, compared to $123,000 for the same period of the prior year. Net results were a loss of $1,590,000, or $0.32 per share, compared to a loss of $1,773,000, or $0.45 per share, for the same period of the prior year. The increase in revenues is related to an agreement with Coors Brewing Company ("Coors") for use of Xytronyx's Kephra reversible color change technology in a summer 1994 promotion by Coors. Xytronyx also noted that product development expenses for the current six month period includes $414,000 in costs incurred relating to the U.S. clinical trials of the Periodontal Tissue Monitor kit.

Xytronyx Inc. is engaged in the development and commercialization of products based on biotechnological research primarily in the areas of medicine, dentistry and veterinary medicine. -0-

          Xytronyx Inc. and Subsidiary (A Development Stage Co.)
               Consolidated Financial Data (unaudited)

                            Three Months Ended      Six Months Ended
                               September 30           September 30
                             1994        1993       1994        1993

REVENUES
  Product sales            $3,994    $20,347    $603,723     $60,907
  License fees and
   royalties              110,000         --     330,000          --
  Contract research            --         --      99,151          --
  Option agreements            --     26,500          --      26,500
  Interest and other       31,780     21,391      68,099      35,928
Total revenues            145,774     68,238   1,100,973     123,335

COSTS AND EXPENSES
  Cost of product sales    49,941     72,070     349,194     155,619
  Product development     487,069    185,299   1,142,532     388,797
  General and
   administrative         401,381    562,324     842,556   1,040,468
  Business development
   and marketing           99,077     60,628     329,063     271,998
  Interest and other       10,017     21,426      27,924      39,256
Total costs
 and expenses           1,047,485    901,747   2,691,269   1,896,138

Net loss               ($901,711) ($833,509) ($1,590,296) ($1,772,803)
Net loss per share
 of common stock           ($0.18)    ($0.21)     ($0.32)     ($0.45)
Weighted average
 shares outstanding     4,994,551  4,056,856   4,950,734   3,897,060
-0-

                      Balance Sheet Summary Highlights

                        September 30, 1994      March 31, 1994

Cash, cash equivalents and
 short-term investments         $3,787,057          $4,504,010
Total assets                     4,690,056           5,168,231
Long-term liabilities               47,941              69,880
Stockholders' equity             4,054,301           3,941,774

CONTACT: Xytronyx Inc.

              Dale A. Sander, C.F.O.
              619/587-8953 or 619/546-1114
                  or
              H.L. Lanzet Inc.
              Herbert L. Lanzet or Paul Holm, 212/687-0061