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Array BioPharma Reports Financial Results For The Fourth Quarter and Full Year of Fiscal 2002
BOULDER, Colo., Aug 5, 2002 /PRNewswire-FirstCall via COMTEX/ --

- Strong Revenue Growth Supports Rapidly Expanding Proprietary Research Programs -

Array BioPharma Inc. (Nasdaq: ARRY) today reported financial results for the fourth quarter and full year of fiscal 2002, ended June 30, 2002.

During the fourth quarter of fiscal 2002, total revenue reached $10.0 million, up 77% from $5.7 million during the same period in fiscal 2001. Net loss was $845,000, or ($0.03) per share for the fourth quarter, compared to a net loss of $1.6 million, or ($0.07) per share for the comparable quarter in fiscal 2001. Array ended the fourth quarter of fiscal 2002 with $59.6 million in cash and marketable securities.

"Fiscal 2002 was another exciting year for Array BioPharma. We demonstrated dramatic growth in revenues, collaborations, investment in proprietary research, scientific staff and laboratory facilities," said Robert E. Conway, Chief Executive Officer. "Array continues to execute a unique business strategy of funding our proprietary research primarily out of the earnings from our collaborations. Array is building a sustainable drug discovery company that is not dependent on continually accessing the capital markets for additional funding."

Highlights during the fourth quarter of fiscal 2002 include:

    -- Increased revenue by 77% compared to the same period in the last fiscal year, primarily as a result of new and expanded collaborations.

    -- Initiated a drug discovery collaboration with Syrxx, Inc. to create small molecule therapeutics against a Syrxx target using the Array Discovery Platform. Array will receive research funding and be entitled to milestones and royalties based on development and commercial success.

    -- Hired James D. Winkler, Ph.D., as Director of Discovery Biology. Dr. Winkler is responsible for leading Array's rapidly expanding Discovery Biology Department which includes molecular biology, protein chemistry, structural biology, assay development, high throughput screening and cell biology. Prior to joining Array, Dr. Winkler spent 15 years with GlaxoSmithKline, most recently serving as Associate Director in the department of Oncology Research.

    -- Increased investment in Array's proprietary research to $1.8 million for the quarter and $5.5 million for the full year, compared to $519,000 and $1.6 million for the same periods last fiscal year. We currently have three programs in the lead optimization phase for inflammation and oncology indications.

    -- Continued validation of our cGMP manufacturing facility in accordance with FDA regulations. We anticipate being able to initiate our first cGMP manufacturing campaign in the second half of calendar 2002. This capability will allow us to produce cGMP material for Phase I clinical testing.

    -- Achieved the third consecutive positive quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) of $552,000, compared to a negative EBITDA of $640,000 for the fourth quarter of fiscal 2001, realizing a $1.2 million improvement. Fiscal 2002 EBITDA was $997,000, compared to a negative EBITDA of $4.7 million in fiscal 2001, realizing a $5.7 million improvement.

Revenue for the fiscal year ended June 30, 2002, was $35.1 million, increasing 106% compared to revenue of $17.0 million for fiscal year 2001. The net loss for the fiscal year ended June 30, 2002, was $4.5 million, or ($0.18) per share, compared to a net loss of $15.6 million, or ($0.99) per share, reported in fiscal 2001. Cash flow from operations improved to a positive $1.4 million for the fiscal 2002, compared to $2.4 million net cash used in operations for fiscal 2001, a $3.8 million improvement.

Array will hold a conference call on Tuesday, August 6, 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: Tuesday, August 6, 2002

    Time: 9:00 a.m. eastern time

    Toll-Free: (800) 289-0493

    Toll: (913) 981-5510

    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 496690. 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 creating new small molecule drugs through the integration of chemistry, biology and informatics. Our experienced scientists use an integrated set of drug discovery technologies, which we call the Array Discovery Platform, to invent small molecule drugs in collaboration with leading pharmaceutical and biotechnology companies and to build 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.

Array Forward-Looking Statement:

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 Final Prospectus filed on February 12, 2002. 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 continue to fund internal research efforts, and our ability to attract and retain experienced scientists and management. We are providing this information as of August 5, 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   Twelve Months Ended
                                          June 30,            June 30,
                                     2002       2001      2002        2001
                                       (unaudited)

    Revenue                        $10,035     $5,671    $35,089    $17,006
    Cost of revenue*                 5,432      3,604     19,411     11,967
    Gross profit                     4,603      2,067     15,678      5,039

    Research and development
     for collaborations*             2,029      1,604      7,499      6,031
    Research and development for
     proprietary drug discovery*     1,808        519      5,509      1,590
    Selling, general and
     administrative expenses*        1,517      1,274      6,213      4,656
    Compensation related to
     stock option grants               488        618      2,421      4,654
       Total operating expenses      5,842      4,015     21,642     16,931

       Loss from operations         (1,239)    (1,948)    (5,964)   (11,892)

    Interest expense                    --        (86)        --       (587)
    Interest income                    394        653      1,483      2,092
    Net loss                          (845)    (1,381)    (4,481)   (10,387)

    Deemed dividend related to
     beneficial conversion
     feature of preferred stock         --         --         --     (5,000)

    Extraordinary item-interest
     from early extinguishment
     of debt                            --       (225)        --       (225)

    Net loss applicable to
     common stockholders             $(845)   $(1,606)   $(4,481)  $(15,612)

    Basic and diluted net loss
     per share applicable to
     common stockholders            $(0.03)    $(0.07)    $(0.18)    $(0.99)

    Shares used in computing
     basic and diluted net loss
     per share                      27,414     23,176     24,920     15,693


    Earnings before interest,
     taxes, depreciation and
     amortization:
       Net loss as reported          $(845)   $(1,381)   $(4,481)  $(10,387)
       Minus: net interest income      394        567      1,483      1,505
       Plus: depreciation            1,303        690      4,540      2,554
       Plus: compensation related
        to option grants               488        618      2,421      4,654
    EBITDA                            $552      $(640)      $997    $(4,684)

    * Excludes compensation related to option grants


                               Array BioPharma Inc.
                            Summary Balance Sheet Data
                                  (in thousands)

                                                          June 30,   June 30,
                                                            2002       2001

    Cash, cash equivalents and marketable securities      $59,598    $47,712
    Property, plant and equipment, net                     35,788     17,421
    Working capital                                        57,350     44,917
    Total assets                                          107,915     70,950
    Stockholders' equity                                   93,901     62,468


SOURCE Array BioPharma Inc.

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