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Biotech / Medical : NEXL

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To: Anthony G. Breuer who wrote (1581)11/2/1999 9:20:00 AM
From: LLCF   of 1704
 
Tuesday November 2, 8:33 am Eastern Time

Company Press Release

Nexell Therapeutics And Applied Imaging Sign Distribution
Agreement for Cytonex ICC Kit

Combined Technologies Will Offer Enhanced Tumor Detection Capabilities To Laboratories Worldwide

IRVINE, Calif.--(BW HealthWire)--Nov. 2, 1999-- Nexell Therapeutics Inc. (Nasdaq:NEXL - news), one of the world's leading suppliers of
therapeutic and diagnostic products based on stem cell technology, announced today that it has signed an exclusive agreement under which Applied
Imaging Corp. (Nasdaq:AICX - news), the developer of the MDS(TM) (Micrometastasis Detection System), will distribute Nexell's Cytonex(TM)
ImmunoCytoChemistry (ICC) Staining Kit to its cancer imaging system customers worldwide. Terms of the agreement were not disclosed.

''This agreement with Applied Imaging will give us immediate access to hundreds of cancer research and anatomic pathology laboratories, greatly
enhancing our market penetration with the Cytonex(TM) ICC Staining Kit without altering the focus of our own sales force on the transplant
community,'' said L. William McIntosh, President and COO of Nexell Therapeutics. ''This agreement also effectively introduces our kit into the
expanding field of automated image analysis for minimal residual disease.''

Introduced in August, 1999, the Cytonex(TM) ICC Staining Kit is an in vitro diagnostic assay designed to help pathologists detect the presence of
cytokeratin-containing cells in blood and bone marrow specimens from patients with a wide range of malignancies (e.g., breast cancer, prostate
cancer, ovarian cancer, non-small cell lung cancer and colon cancer). The presence of low numbers of tumor cells (micrometastases) in bone
marrow and blood products from patients with a variety of solid-tumor cancers is of extreme clinical interest. A number of studies have
demonstrated that the presence of micrometastases at the time of surgery in breast, prostate and lung cancer patients, may be associated with poor
prognosis and early relapse. More information on this topic is available on the web at www.micrometastasis.org.

''Today's agreement is the direct result of an ongoing scientific collaboration between our companies that assessed the ability of our automated
scanning microscopy system, the MDS(TM), to consistently identify potentially cancerous cells after staining with the Cytonex(TM) product. We
plan to expand this collaboration with Nexell to develop additional applications for both companies' technologies in upcoming trials in bone marrow
and peripheral blood samples,'' said Carl Hull, President and COO of Applied Imaging.

The MDS(TM) is an automated imaging system that is capable of scanning in both brightfield and fluorescent modes. The system allows
researchers to detect and genetically characterize minute numbers of micrometastatic cancer cells using immunohistochemistry reagents, such as
the Cytonex(TM) kit, and fluorescent-labeled DNA and RNA probes. The system automatically finds cells of interest and stores them digitally for
review and pathologist classification.

Applied Imaging Corp.

Applied Imaging Corp., based in Santa Clara, California, develops, manufactures and markets automated clinical and research imaging systems used
by laboratories for cancer and prenatal genetic testing. The Company markets its CytoVision(TM), Quips®, Genus(TM) and MDS(TM) systems
worldwide and now serves more than 800 customers in over 35 countries. Applied Imaging is accessible on the web at www.aicorp.com.

Nexell Therapeutics Inc.

Located in Irvine, California, Nexell Therapeutics Inc. (Nasdaq:NEXL - news) is a cell therapy company whose mission is to put the power of the
cell into the hands of healers. Nexell is developing and marketing innovative ex vivo cell therapies and in vitro diagnostics for cancer, autoimmune,
metabolic and genetic diseases. Nexell's lead product, the Isolex® 300i Cell Selection System, is the only FDA approved device for the selection of
hematopoietic stem cells and the removal of tumor cells from autologous peripheral blood as a component of aggressive cancer treatment. In
addition, Nexell markets the Cytonex(TM) ICC Staining Kit and an extensive line of cell therapy preparation, storage and expansion products
including the Cryocyte(TM), SteriCell® and Lifecell® brands.

The Private Securities Litigation Reform Act of 1995 provides a ''safe harbor'' for certain forward-looking statements. The forward-looking
statements contained in this release are subject to certain risks and uncertainties. Actual results could differ materially from current expectations.
Among the factors which could affect either Company's actual results and could cause results to differ from those contained in the forward-looking
statements contained herein are: the timely commencement and success of either Company's clinical trials and other research endeavors, delays in
receiving FDA or other regulatory approvals, the development of competing therapies and/or technologies, the terms of any future strategic
alliances, the possible need for additional capital, and any additional factors described from time to time in either Company's periodic reports on
Form 10-K and 10-Q, and any prospectus describing either Company's securities.

NOTE TO INVESTORS AND EDITORS: Nexell Therapeutics Inc. press releases are available on the Internet through www.nexellinc.com and
through BusinessWire's web site at businesswire.com. The releases are also available at no charge through Business Wire's
fax-on-demand service at 800/411-8792.

DAK
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