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To: DR. MEADE who wrote (18663)	5/18/1998 8:47:00 AM
From: WTT2	Read Replies (1) \| Respond to of 34592

DynaGen Reports First Quarter 1998 Results; Net Loss Decreases CAMBRIDGE, Mass.--(BUSINESS WIRE)--May 18, 1998--DynaGen Inc. (NASDAQ:DYGN;BSE:DYG) today announced its results for the first three months ended March 31, 1998. DynaGen reported revenues for the first quarter of 1998 of $6,961,625 as compared to $457,670 for the first quarter of 1997. This increase of $6,503,955 reflects primarily revenues from the distribution of pharmaceutical products by Superior Pharmaceutical Company and one month of revenues from its subsidiary Generic Distributors Inc. (GDI). This is also the first time GDI revenues have been consolidated since the acquisition which was completed in March 1998. DynaGen reported a net loss of $1,679,063 or $0.24 per share for the first quarter of 1998 as compared to a net loss of $1,888,612 or $0.63 per share for the first quarter of 1997. Gross profit on the product sales increased in first quarter 1998 to $1,403,063 from $4,125 for the same period in 1997, primarily due to Superior's product sales. The decrease in the net loss for the first quarter 1998 compared to the 1997 period is mostly due to increased sales and cost cutting measures undertaken by the company. Selling, general and administrative expenses were $2,466,917 for the 1998 first quarter, an increase of $991,987, as compared to $1,474,930 for the 1997 first quarter. The increase in selling, general and administrative expenses was primarily due to the faster amortization of the intangible assets of the company. Research and development expenses were $226,617 in the 1998 first quarter as compared to $487,412 in the 1997 first quarter. The decrease in research and development expenses of $260,795 reflects the completion of NicErase(R)-SL Phase 3 clinical trials and discontinuance of the NicErase(R)-SL development program. This decrease was partially offset by R&D expenses for the company's breast biopsy technology which is in early stages of development. "We are pleased to report continued improvement in revenues and reduction in the losses as we transition from proprietary drug development to the multisource drug business," said Dr. Indu A. Muni, president & CEO of DynaGen, Inc. "We are focusing on rapidly expanding our portfolio of generic drug products and we are filing approval applications with the FDA." DynaGen Inc. is a health care company that manufactures and distributes generic pharmaceuticals. The company's wholly owned subsidiary, Able Laboratories, of South Plainfield, NJ, manufactures tablets and suppositories, and its other two subsidiaries, Superior Pharmaceutical Company, of Cincinnati, OH, and Generic Distributors Incorporated, of Monroe, LA, distribute generic drugs throughout the United States. Any statements which are not historical facts contained in this press release are forward-looking statements that involve risks and uncertainties. Please refer to the special considerations and risk factors identified in the company's recent report on Form 10-K. CONTACT: LBI Group Inc. Paul Lovito 800/913-9767 or DynaGen Inc. C. Robert Cusick 617/491-2527 KEYWORD: MASSACHUSETTS BW1035 MAY 18,1998