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PHARMAKINETICS LABORATORIES, INC., REPORTS INCREASE OF 37 PERCENT IN DOMESTIC REVENUES; 203 PERCENT INCREASE IN INCOME FROM 1993 OPERATIONS

 BALTIMORE, Sept. 2 /PRNewswire/ -- PharmaKinetics Laboratories, Inc. (OTC Bulletin Board: PKLB), announced today its financial results for the three and 12 month periods ended June 30, 1993.
 For the three month period ended June 30, 1993, revenue increased 27 percent to $2,611,000 compared to $2,060,000 for the fourth quarter in fiscal 1992. During the fourth quarter of fiscal 1993, the company generated a profit from operations of $197,000, compared to a profit of $94,000 in the fourth quarter of the previous year. The company recognized a one-time gain of $107,000 from debt forgiveness associated with the emergence from Chapter 11 bankruptcy proceedings, and a loss of $575,000 from a write-down in the value of the company's equity security holdings in TSI Corporation (NASDAQ-NMS: TSIN). These adjustments resulted in a net loss in the fourth quarter of fiscal 1993 of $376,000 (3 cents per share) compared to net income of $374,000 (3 cents per share) in the comparable quarter of the prior year. Decreases in the market value of the TSI stock, as of March 31, 1993, were reflected as a valuation allowance in stockholders' equity.
 For the 12 month period ended June 30, 1993, revenue decreased 32 percent to $8,718,000 compared to $12,812,000 in fiscal 1992, which included nine months of operations of the company's former German subsidiary. On a comparative basis, domestic revenues increased 37 percent in fiscal 1993 over comparable fiscal 1992 revenues of $6,351,000. Income from operations in fiscal 1993 increased 203 percent to $578,000 from a loss of $560,000 in fiscal 1992. The company recognized a net loss in fiscal 1993 of $91,000 (1 cent per share) compared to net income of $3,544,000 (32 cents per share)in fiscal 1992. Fiscal 1992 results were positively impacted by $902,000 of bankruptcy- related adjustments and a gain of $5,925,000 from the sale of the company's holdings in Royce Laboratories (NASDAQ-NMS: RLAB), offset by the $607,000 write-down of its TSI stock holdings and the $1,213,000 loss on the sale of the company's subsidiary.
 The company completed its restructuring and emerged from bankruptcy with reduced liabilities and an improved capital position. Common stock outstanding was increased 15 percent to 12,315,891 as a result of an exchange of equity for debt pursuant to the company's Plan of Reorganization, which was confirmed on April 1, 1993, and made effective May 10, 1993.
 "The company's management focused its efforts during fiscal 1993 on increasing sales and diversifying the types of biopharmaceutic services offered. The company successfully launched a research and development program to allow for enhanced revenue generation and further expanded its marketing and production capabilities by hiring personnel for key positions. The business is operating more efficiently, evidenced by improved income from operations. This is expected to continue in fiscal 1994," said V. Brewster Jones, president and chief executive officer of the company.
 PharmaKinetics Laboratories, Inc., is a leading drug development company providing services to pharmaceutical firms seeking new drug approvals in the United States and Canada.
 PHARMAKINETICS LABORATORIES, INC.
 Financial Highlights
 (000's) Except share and per share data
 Condensed Statements of Operations
 Three months ended Years ended
 June 30, June 30, June 30, June 30,
 1993 1992 1993 1992
 Contract revenue $2,611 $2,060 $8,718 $12,812
 Earnings (loss)
 from operations $197 $94 $578 $(560)
 Other income (expense)
 Interest expense, net (37) (165) (232) (853)
 Write-down of
 investments (575) (607) (575) (607)
 Gain on sale
 of investments -- -- -- 5,925
 Loss on sale
 of subsidiary -- -- -- (1,213)
 Reorganization items (66) 1,052 19 902
 Provision for (benefit of)
 income taxes -- -- (12) 50
 Extraordinary item: debt
 forgiveness 107 -- 107 --
 Net earnings (loss) ($376) $374 ($91) $3,544
 Net earnings (loss)
 per share ($0.03) $0.03 ($0.01) $0.32
 Weighted average shares
 outstanding 11,344,299 11,039,512 10,656,328 10,984,253
 Condensed Balance Sheets
 June 30, 1993 June 30, 1992
 Cash and equivalents $1,340 $ 391
 Restricted cash and equivalents 193 3,980
 Other current assets 1,265 1,347
 Investments 218 793
 Property, plant and equipment 3,127 2,998
 Other assets 55 71
 Total assets $6,198 $9,580
 Current liabilities $2,501 $2,866
 Liabilities subject to compromise -- 6,793
 Long-term debt 2,332 120
 Total liabilities 4,833 9,779
 Stockholders' equity (deficiency) 1,365 (199)
 Total liabilities and stockholders'
 equity (deficiency) $6,198 $9,580
 -0- 9/2/93
 /CONTACT: Taryn L. Kunkel, vice president and chief financial officer, PharmaKinetics Laboratories, 410-385-4500/
 (PKLB)


CO: PharmaKinetics Laboratories, Inc. ST: Maryland IN: MTC SU: ERN

KD-MH -- DC007 -- 8353 09/02/93 10:48 EDT
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Date:Sep 2, 1993
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