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Array BioPharma Reports Financial Results For The Second Quarter of Fiscal 2002
BOULDER, Colo., Jan. 22 /PRNewswire-FirstCall/ -- Array BioPharma Inc. (Nasdaq: ARRY) today reported financial results for the second quarter of fiscal 2002, ended December 31, 2001.

During the second quarter of fiscal 2002, total revenue reached $8.4 million, up 118% from $3.8 million during the same period in fiscal 2001. Net loss was $1.3 million or ($0.05) per share, compared to a net loss of $4.2 million or ($0.33) per share for the comparable quarter in fiscal 2001. Array ended the second quarter of fiscal 2002 with $36.8 million in cash and marketable securities.

"We continued our revenue growth this quarter and achieved a positive cash flow from operations, which excludes investment in facilities and equipment," said Robert E. Conway, Chief Executive Officer. "We intend to utilize this cash flow to increase our investment in Array's proprietary research, creating a pipeline of early drug discovery programs aimed at families of therapeutically important disease targets including kinases, phosphatases and proteases. Our strategy is to continue to enhance the capabilities of the Array Discovery Platform, creating value for both our collaborators and our own proprietary research."

    Highlights during the second quarter of fiscal 2002 include:

    -- Increased revenues by 118% compared to the same period in the last
       fiscal year, primarily as a result of new and expanded collaborations.
    -- In collaboration with ICOS Corporation, our first drug discovery
       agreement has resulted in a clinical candidate.  In November 2001, ICOS
       initiated clinical trials with IC485 and subsequently made a milestone
       payment to Array.
    -- Signed a series of non-exclusive agreements to provide Pfizer Inc with
       access to chemical compounds from the Array Discovery Platform for its
       internal drug discovery programs.  To date, this series of agreements
       positions Pfizer as one of Array's top five collaborators for fiscal
       year 2002.
    -- Amgen Inc. initiated a new drug discovery program with Array.  The new
       program replaces the existing PTP-1B collaboration that was announced
       in November 2000.  Array retains all rights to the existing PTP-1B
       program.
    -- Shipped $1.0 million of Optimer(TM) building blocks to a single major
       pharmaceutical company, fueling a record quarter of Optimer sales,
       which totaled $1.5 million.
    -- Achieved for the first time positive quarterly earnings before
       interest, taxes, depreciation and amortization (EBITDA) of
       $109,000, which is the net loss of $1.3 million, excluding interest
       income of $351,000, depreciation of $1.1 million, and amortization from
       compensation related to option grants of $644,000.
Revenue for the six-month period ended December 31, 2001, was $15.6 million, increasing 136% compared to revenues of $6.6 million for the same period in fiscal 2001. The net loss for the six months ended December 31, 2001, was $2.8 million, or ($0.12) per share, compared to a net loss of $12.3 million, or ($1.49) per share, reported in the same period in fiscal 2001.

Array will hold a conference call on Wednesday, January 23, 2002, at 9:00 a.m. eastern time to discuss these results. Robert E. Conway, Chief Executive Officer and Michael Carruthers, Chief Financial Officer, will lead the call.

    CONFERENCE CALL INFORMATION

     Date:          Wednesday, January 23, 2002
     Time:          9:00 a.m. eastern time
     Toll-Free:     (888) 515-2235
     Toll:          (719) 457-2601
     Web Cast:      www.arraybiopharma.com
There will be a replay of the conference call for one week, which can be accessed in the United States by dialing toll-free (888) 203-1112, and outside the United States (719) 457-0820. The access code is 511940. Replay of the call will also be available as a web cast on Array's web site at www.arraybiopharma.com .

About Array BioPharma:

Array BioPharma is a drug discovery company inventing new drugs through the integration of chemistry, biology and informatics. We collaborate with leading pharmaceutical and biotechnology companies to identify novel small molecule drugs using the Array Discovery Platform. We leverage this integrated approach to small molecule drug discovery to develop our own pipeline of proprietary drug candidates. For more information on Array BioPharma, please visit our web site at www.arraybiopharma.com .

About EBITDA:

EBITDA means earnings before interest, taxes, depreciation and amortization. EBITDA should be considered in addition to, but not as a substitute for, loss from operations, net loss and other measures of financial performance prepared in accordance with generally accepted accounting principles that are presented in Array's financial statements. Array's calculation of EBITDA may be different from the calculation used by other companies and therefore, may not be comparable to similarly titled measures reported by other companies.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve significant risks and uncertainties, including those discussed below and described more fully in reports filed by Array with the Securities and Exchange Commission, including our Annual Report on Form 10-K as filed on September 27, 2001. Because these statements reflect our current expectations concerning future events, our actual results could differ materially from those anticipated in these forward-looking statements as a result of many factors. These factors include, but are not limited to, our ability to achieve and maintain profitability, the extent to which the pharmaceutical and biotechnology industries are willing to collaborate with third parties on their drug discovery activities, the ability of our collaborators and of Array to meet drug discovery objectives tied to milestones and royalties, our ability to create successful proprietary drug candidates and our ability to attract and retain experienced scientists and management. We are providing this information as of January 22, 2002. We undertake no duty to update any forward-looking statements to reflect the occurrence of events or circumstances after the date of such statements or of anticipated or unanticipated events that alter any assumptions underlying such statements.

                             Array BioPharma Inc.
                      Condensed Statement of Operations
                   (in thousands, except per share amounts)

                                    Three Months Ended     Six Months Ended
                                       December 31,          December 31,
                                     2001        2000      2001         2000
                                       (unaudited)            (unaudited)

    Revenue                         $8,358      $3,833   $15,550       $6,594
    Cost of revenue*                 5,004       3,291     9,537        5,699
    Gross profit                     3,354         542     6,013          895

    Research, and development
     expenses*                       3,262       2,115     6,047        3,817
    Selling, general and
     administrative expenses*        1,720       2,955     3,549        4,649
        Total operating expenses     4,982       5,070     9,596        8,466

        Loss from operations        (1,628)     (4,528)   (3,583)      (7,571)
    Interest expense                    --        (180)       --         (353)
    Interest income                    351         477       812          607
    Net loss                        (1,277)     (4,231)   (2,771)      (7,317)
    Deemed dividend related to
     beneficial conversion
     feature of preferred stock         --          --        --       (5,000)
    Net loss applicable to common
     stockholders                  $(1,277)    $(4,231)  $(2,771)    $(12,317)
    Basic and diluted net loss
     per share applicable
     to common stockholders         $(0.05)     $(0.33)   $(0.12)      $(1.49)
    Shares used in computing
     basic and diluted net
     loss per share                 23,516      12,855    23,434        8,287

    * Includes compensation
      related to option grants:
        Cost of revenue               $271        $277      $542         $486
        Research and development
         expenses                      180         163       360          302
        Selling, general and
         administrative expenses       193       2,191       442        2,548
           Total                      $644      $2,631    $1,344       $3,336


                          Summary Balance Sheet Data
                                (in thousands)

                                                 December 31,        June 30,
                                                     2001              2001
                                                  (unaudited)

    Cash, cash equivalents and marketable
     securities                                     $36,824           $47,712
    Property, plant and equipment, net               27,349            17,421
    Working capital                                  34,073            44,917
    Total assets                                     73,687            70,950
    Stockholders' equity                             61,598            62,468

                     
SOURCE Array BioPharma Inc.

CONTACT: Tricia Haugeto of Array BioPharma Inc., +1-303-386-1193, or thaugeto@arraybiopharma.com