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Albany Molecular Research, Inc. Reports Record Revenue and Income for 1998.

ALBANY, N.Y.--(BUSINESS WIRE)--March 11, 1999--Albany Molecular Research, Inc. (NASDAQ: AMRI) announced on March 2, 1999 record financial results for the year ended December 31, 1998. Net contract revenue for the year was $13.4 million, a 65% increase over net contract revenue of $8.1 million for 1997. Licensing fees, milestone payments, and royalties for the year were $19.6 million, as compared to licensing fees, milestone payments, and royalties of $2.5 million for 1997. Of the $19.6 million in licensing fees, milestone payments and royalties, $11.5 million consisted of royalties on 1998 sales of fexofenadine HCl (sold as Allegra(TM) in the Americas and Telfast elsewhere), $3.7 million consisted of non-recurring milestone payments and $4.4 million in non- recurring royalties related to prior periods. Net income increased to $11.4 million in 1998 over $2.2 million for 1997. Diluted earnings per share increased to $0.95 in 1998 compared to $0.18 for 1997.

For the fourth quarter of 1998, the Company also achieved record net contract revenue, which increased 64% to $3.7 million, up from $2.3 million during the fourth quarter of 1997. Net income grew to $2.1 million versus $49,000 for the fourth quarter 1997. Diluted earnings per share increased to $0.18, compared to less than $0.01 for the fourth quarter of 1997.

"Nineteen-ninety eight was a great year for the Company," said Thomas E. D'Ambra, Ph.D., Chairman and Chief Executive Officer of Albany Molecular Research, Inc. "In addition to a strong increase in our net contract revenue, we also received significant revenue from royalties, milestone payments, and licensing fees from our patents related to fexofenadine hydrochloride, the active ingredient in Allegra(TM), the non- sedating antihistamine marketed by Hoechst Marion Roussel. Together, these two facts are testaments to the success of both our business model -- the provision of contract chemistry research services to the pharmaceutical and biotechnology industries -- and to the scientific talent that exists within our organization. It is the dedication, work ethic, and intellectual horsepower of our scientific staff that drives the success of our business."

"While we believe we will continue to enjoy a significant revenue stream from our patents for a number of years," continued D'Ambra, "we will seek to grow our business principally through the aggressive expansion of our core business, contract chemical research and development services. We will seek to add to the depth and breadth of our service offerings to our customers as quickly as possible, and we will continue to look for new opportunities which will enhance our core business or expand our capabilities."

Albany Molecular Research is an integrated chemistry outsourcing company that offers a broad range of chemistry research and development services to pharmaceutical and biotechnology companies involved in drug discovery and development. The Company offers services traditionally provided by chemistry divisions within pharmaceutical companies, including medicinal chemistry, chemical development, analytical chemistry services and small-scale manufacturing. The Company's objective is to be the leading provider of comprehensive outsourced chemistry research services to the pharmaceutical and biotechnology industries.

Albany Molecular Research, Inc. completed its initial public offering (IPO) of common stock on February 4, 1999, selling 2,500,000 shares at $20 per share. ING Baring Furman Selz LLC lead-managed the underwriting group for the IPO, with Hambrecht & Quist acting as co-manager.

Statements in this press release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including in particular statements regarding the revenue stream provided by the Company's patents and statements describing the Company's strategy for future growth. These statements involve risk and uncertainties that could cause actual results to differ materially from such forward-looking statements, including (i) the ability of Hoechst Marion Roussel to continue to market Allegra(TM) and the public's continuing, and (iii) the Company's ability to successfully identify acquisition candidates at favorable prices and on favorable terms and, if consummated, to integrate the acquired business with its own, in addition to those factors discussed und (Unaudited)


and royalties 3,998 30 19,645 2,531 Less technology development

incentive compensation 387 3 1,822 253 L1,029 5,212


Income from operatioense) (41) (11) (37) (26) Total other income (expense) (200) - (80)6,979 947

Net income 2,145 49 11,445 2,189

Net income per share:

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Publication:Business Wire
Date:Mar 11, 1999
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