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ETHICAL HOLDINGS PLC FISCAL 1993 YEAR END RESULTS

 GODMANCHESTER, U.K., Oct. 25 /PRNewswire/ -- Ethical Holdings plc (NASDAQ: ETHCY) today reported its full year's operating results for fiscal 1993.
 For the year ended Aug. 31, 1993, Ethical posted an operating income of 1,171,448 pounds sterling. Net income was 831,172 pounds equal to 0.07 pounds per share before a one time charge of 780,350 pounds (803,450 pounds less tax of 23,100 pounds) arising from the merger with Gacell Holdings AB. The company posted a final net income of 50,822 pounds equal to 0.00 pounds per share. In the corresponding period of fiscal 1992 the company posted an operating loss of 430,196 pounds and a net loss of 76,342 pounds, equal to (0.01) pounds per share. Revenues for the twelve month period were 9,485,091 pounds as compared with 7,159,579 pounds in fiscal 1992.
 During the fourth quarter of fiscal 1993, the company signed seven new contracts for its products, including contracts for additions to the product pipeline. In keeping with Ethical's stated policy of client confidentiality, the names of the licensees have not been disclosed by the company.
 In late 1992, Ethical began work on a second combination patch for hormone replacement therapy, containing estradiol and a partner's proprietary progestogen. The success of the project to date resulted in the signing in fiscal 1993 of two separate licensing agreements with this partner for two distinct transdermal products containing these hormones.
 In fiscal 1993, Ethical has also completed a licensing agreement for a new transdermal product that has been commissioned by a U.S. company. Details of this product have not been disclosed. In addition two contracts, for the licensing of Ethical's estradiol and combination norethisterone/estradiol transdermal patches in previously unlicensed territories, were signed in fiscal 1993 with a major new partner.
 An agreement was also signed between Ethical and a U.S. company, giving the U.S. partner an option for U.S. rights to the once-daily diltiazem product developed by Gacell Holdings AB in Sweden, a company recently acquired by Ethical.
 Finally Ethical entered into a co-development agreement in fiscal 1993 with Drug Royalty Corporation Inc., whereby Drug Royalty will participate through license revenue and royalty interests in the development of new controlled-release versions of cardiovascular drugs for international markets.
 Dr. Geoffrey W. Guy commented: "We are particularly pleased to have completed these agreements at a time when the company was also completing the merger with Gacell. These contracts have substantially increased the development work we have underway for a growing client base. The new transdermal products and new controlled-release product will mean that Ethical immediately takes advantage of the underutilised resource provided by Gacell. During fiscal 1994, the company will be seeking a new licensee for its estradiol/norethisterone combination hormone replacement therapy patch in the U.S., as this was not licensed in fiscal 1993, and licensees for its products in Japan."
 Ethical Holdings plc is a pharmaceutical development company specializing in pharmaceutical products using the company's proprietary drug delivery systems, including controlled-release tablets, transdermal patches, and topical formulations. Ethical also has an ancillary phytomedicines business that develops drugs derived from plants.
 ETHICAL HOLDINGS PLC
 STATEMENT OF OPERATIONS Data (US GAAP UNAUDITED)
 Year Aug. 31,
 1992 1993 1993
 Pounds Pounds U.S.$
 REVENUE:
 Licensing & Development Fees 3,608,306 4,617,290 7,175,730
 Royalties and Products Sales 2,527,330 3,838,147 5,964,864
 Services 1,023,943 1,029,654 1,600,185
 Total Revenues 7,159,579 9,485,091 14,740,779
 OPERATING EXPENSES
 Direct Costs 2,030,871 2,046,791 3,180,918
 Research, development and
 laboratory expenses 2,889,330 3,700,743 5,751,325
 Selling, general and
 administrative expenses 2,669,574 2,566,109 3,987,990
 Total expenses 7,589,775 8,313,643 12,920,233
 OPERATING (LOSS)/INCOME (430,196) 1,171,448 1,820,546
 Interest (Expense)/Income(net) (87,851) 66,868 103,920
 Other income 427,357 0 0
 Merger costs 0 (803,450) (1,248,642)
 (LOSS)/INCOME FROM CONTINUING
 OPERATIONS BEFORE TAXES
 AND MIN INTERESTS (90,690) 434,866 675,824
 Income taxes (112,433) (408,575) (634,966)
 (LOSS)/INCOME FROM CONTINUING
 OPERATIONS BEFORE
 MINORITY INTERESTS (203,123) 26,291 40,858
 Minority intersts 18,190 0 0
 (LOSS)/INCOME FROM
 CONTINUING OPERATIONS (184,933) 26,291 40,858
 DISCONTINUED OPERATION:
 Income from operations of
 discontinued consulting
 business (after tax) 108,591 24,531 38,124
 NET PROFIT(LOSS) (76,342) 50,822 78,982
 PROFORMA SHARES 9,898,499 11,824,697 11,824,697
 EPS CONTINUING OPERATIONS (0.02) 0.00 0.00
 EPS TOTAL OPERATIONS (0.01) 0.00 0.01
 ETHICAL HOLDINGS PLC
 Selected Balance Sheet Data (U.S. GAAP Unaudited)
 Aug. 31, 1993
 Pounds U.S.$
 Working Capital 9,593,670 14,909,523
 Total assets 15,888,309 24,692,021
 Long-term obligations 222,520 345,818
 Stockholders' equity 12,024,529 18,687,321
 Average exchange rate for the year ended Aug. 31, 1993 U.S.$/pounds 1.5541.
 -0- 10/25/93
 /CONTACT: Dr. Geoffrey W. Guy, chairman and chief executive officer of Ethical Holdings plc, 44-480-431303/
 (ETHCY)


CO: Ethical Holdings plc ST: IN: MTC SU: ERN

LD -- NY120 -- 6596 10/25/93 18:06 EDT
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Date:Oct 25, 1993
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