WORCESTER, Mass., Dec. 19, 1995 -- href="chap11.cambridge.html">Cambridge Biotech
        Corporation today reported audited financial results for the year
        ending December 31, 1994.  The audit was completed by Coopers &
        Lybrand, which was retained by the company in November 1994.
        

            Management noted that audited financials are required for re-
        listing the company's stock on NASD and this audit is an important
        step forward. The company's previous auditors resigned in March
        1994, following concerns regarding several transactions in prior
        years, without completing the 1993 audit, and withdrew their opinion
        on the company's 1992 financial statements.  On July 7, 1994,
        Cambridge Biotech filed for protection under Chapter 11 of the U.S.
        Bankruptcy Code.
        

            For the year ended December 31, 1994, the company reported total
        revenues of $22.1 million.  The company's revenues included $16.7
        million in product sales, of which approximately $16 million
        represented sales of diagnostic products.  The company reported
        expenses of $33.5 million in 1994, and a loss from continuing
        operations of $12.5 million, or $0.48 per share.  There was a net
        loss of $22.3 million, or $0.86 per share, which included a $9.8
        million loss related to the sale in November 1994 of the company's
        wholly-owned Irish subsidiary.  The company ended 1994 with
        approximately $8.5 million in cash and cash equivalents.
        

            Cambridge Biotech Corporation, which filed for protection under
        Chapter 11 of the U.S. Bankruptcy Code on July 7, 1994, is a
        therapeutics and diagnostics company involved in developing
        vaccines, adjuvants, and diagnostics for infectious diseases and
        cancer in humans and animals.
        

                    CONSOLIDATED STATEMENT OF OPERATIONS 1994
        
         Revenue                                  $22,099,859
        
         Costs and Expenses                       $33,498,511
        
         Interest Income/Other (Net)                ($472,582)
        
         Reorganization items                       ($868,754)
        
         Income Tax Benefit                          $207,396
        
         Loss from Discontinued Operations        ($9,743,674)
        
         Loss from Continuing Operations         ($12,532,592)
        
         Net Income (Loss)                       ($22,276,266)
        
         Net Loss per Weighted Average Share           ($0.86)
        
         Weighted Average Shares Outstanding       25,858,608
        
                           CONSOLIDATED BALANCE SHEET
        
                                December 31, 1994
        
         Cash and Cash Equivalents                 $8,537,791
        
         Total Current Assets                     $16,307,980
        
         Total Assets                             $28,502,670
        
         Total Current Liabilities                 $7,421,513
        
         Total Liabilities                        $19,834,989
        
         Total Shareholders' Equity                $8,667,681
        
         Total Liabilities and
          Shareholders' Equity                    $28,502,670