PAGE    3                                                        Business 
Wire

                             July 14, 1989, Friday

DISTRIBUTION: Business Editors

LENGTH: 521 words

HEADLINE: DAMON-BIOTECH; (DBIO) Damon Biotech financial results

DATELINE: NEEDHAM HEIGHTS, Mass

 BODY:    Damon Biotech (NASDAQ:DBIO) Friday reported a loss of 
$2,020,119, or 9 cents per share, for the third quarter of fiscal 1989 
ended May 31, 1989, compared with a loss of $1,117,056, or 5 cents per 
share, for the same period in fiscal 1988.

   Revenues for the third quarter were $521,663, compared with $1,002,729 
in the third quarter of fiscal 1988. The third quarter of fiscal 1989 
includes $116,685 of initial revenues under the company's recently 
announced urokinase agreement with Abbott Laboratories. The fiscal 1988 
revenues included $333,333 derived from a contract for the 
commercialization of tissue plasminogen activator which has subsequently 
been cancelled.

   Membership on the board of directors has been increased to seven, with 
the addition of  Robert L. Rosen,  Glen Kassan and Henry Hendler, each of 
whom are affiliated with Damon Corp. which owns 62 percent of Damon 
Biotech's common stock, and George B. Raymond.

   Damon Biotech develops, manufactures and markets biomedical products 
including monoclonal antibodies and genetically engineered proteins using 
its two patented technologies: the Cellular Enhancer and ENCAPCEL system.                                 
Damon Biotech Inc.                   Condensed Consolidated Statements of 
Operations                                 (Unaudited)                      
Third Quarter Ended          Nine Months Ended                May 31, 
1989  May 31, 1988   May 31, 1989   May 31,1988  Revenues-(a)  $      
311,965  $     769,389   $  2,845,728    $  5,117,543 Interest income     
209,698       233,340       659,119        839,214 Total revenues      
521,663     1,002,729     3,504,847      5,956,757 Cost and expenses 
2,541,782     2,119,785     7,640,454      8,836,375 Net loss         
(2,020,119)   (1,117,056)   (4,135,607)    (2,879,618) Net loss per 
share-(b)          (9 cents)     (5 cents)     (19 cents)    (13 cents)     
(a)-Revenues in the third quarter and first nine months of fiscal 1988, 
include $333,000 and $3,437,000, realized under two agreements for the 
commercialization of a biological product.  As previously reported, these 
agreements have since been terminated and the company 

                                                                       
PAGE    4                      (c) 1989 Business Wire, July 14, 1989                      


received a cash termination payment of $2,000,000, which is included in 
the nine months revenues of fiscal 1989.    (b)-The weighted average 
number of common shares outstanding was 22,539,130 for the nine months 
ended May 31, 1989 and 22,317,039 for the nine months ended May 31, 1988.


   CONTACT: Damon Biotech, Needham Heights             Robert M. 
Stoddard, 617/449-6002             KEYWORD: MASSACHUSETTS   

                                                                       
PAGE    5                                                           
Business Wire