Genta Incorporated Announces Second Quarter 2000 Results

LEXINGTON, MA, August 7, 2000 - Genta Incorporated (Nasdaq: GNTA )announced today its operating results for the second quarter ended June 30, 2000. The Company reported a net loss applicable to common shareholders totaling $2.9 million, or a loss of $(0.09) per common share for the three months ended June 30, 2000, compared to a net loss of $2.3 million, or a loss of $(0.14) per common share, for the same period in 1999. For the six months ended June 30, 2000, the Company"s net loss applicable to common shareholders was $15.1 million, or $(0.49) per share, compared to a loss of $3.4 million, or $(0.23) per share for the same period in 1999.

The Company"s total operating expenses for the three months ended June 30, 2000 increased approximately $1.1 million over the same period last year due primarily to additional material for clinical trials. The net loss applicable to common shareholders for the six months ended June 30, 2000 includes $8.1 million non-cash charges related to stock option accounting for employees, board members and consulting services and $3.4 million in accrued dividends payable in the Company"s common stock to preferred stockholders. The net loss in the first six months of 1999 included a one-time, non-recurring gain of $2.3 million related to Genta"s equity interest in the net income of its joint venture with SkyePharma PLC as a result of an agreement on March 4, 1999 in which Genta and SkyePharma agreed to release each other from all liability relating to unpaid development cost and funding obligations, and a $1.6 million gain from discontinued operations related to the sale of substantially all the assets of its wholly owned specialty chemical subsidiary, JBL Scientific, Inc.

"We had several significant financial achievements during the 2nd quarter," said Dr. Raymond P. Warrell, Jr., President and CEO. "Genta began trading on the Nasdaq National Market System. In July, we were added to the Russell 2000 Index. Pursuant to management"s commitment to simplify the Company"s capital structure, we completed the conversions of the Series D Preferred Stock on June 15, as well as the exercise of Class D Warrants on July 14, which generated $925,000 in cash. This conversion eliminated the final remaining class of shares to which the Company was obligated to pay dividends."

Genta Incorporated is a biopharmaceutical company with a diversified product portfolio that is focused on anticancer therapy. The research platform is anchored by antisense technology. Genasense ^TM , the Company"s lead compound, has received "Fast Track" and "Orphan Drug" designation from the Food and Drug Administration. Genasense ^TM  is currently in several Phase 3 clinical trials. Gentas product pipeline also comprises a portfolio of small molecules, including gallium-containing compounds for treatment of diseases associated with accelerated bone loss (which includes Ganite ^TM , our first product approved for marketing), and Androgenics compounds for prostate cancer. Genta aims to become a direct marketer of its pharmaceutical products in the United States.

For more information about Genta, please visit our website at: http://www.genta.com/

The statements contained in this press release that are not historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the expectations, beliefs, intentions or strategies regarding the future. Without limiting the foregoing, the words ``anticipates,"" ``believes,"" ``expects,"" ``intends,"" ``may"" and ``plans"" and similar expressions are intended to identify forward-looking statements. The Company intends that all forward-looking statements be subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company"s views as of the date they are made with respect to future events, but are subject to many risks and uncertainties, which could cause the actual results of the Company to differ materially from any future results expressed or implied by such forward-looking statements. For example, the results obtained in pre-clinical or clinical studies may not be indicative of results that will be obtained in future clinical trials, and delays in the initiation or completion of clinical trials may occur as a result of many factors. Further examples of such risks and uncertainties also include, but are not limited to: the obtaining of sufficient financing to maintain the Company"s planned operations; timely development, receipt of necessary regulatory approvals, and acceptance of new products; the successful application of the Company"s technology to produce new products; the obtaining of proprietary protection for any such technology and products; the impact of competitive products and pricing and reimbursement policies; and changing market conditions. The Company does not undertake to update forward- looking statements. Although the Company believes that the forward-looking statements contained herein are reasonable, it can give no assurances that the Company"s expectations are correct. All forward looking statements are expressly qualified in their entirety by this cautionary statement and other factors detailed in the Company"s reports filed with the Securities and Exchange Commission.

Selected Condensed Consolidated Financial Data (Unaudited)
(In thousands, except per share data)

                                                 Three months ended     Three months ended
                                                          June 30,                         June 30,

Condensed Consolidated Balance Sheet Data

                                          June 30, 2000                 December 31, 1999

(c)Copyright 2000 Genta Incorporated 

SOURCE: Genta Incorporated