RALEIGH, N.C. (July 27, 2000) -- PharmaNetics, Inc. (NASDAQ NM: PHAR), the holding company of Cardiovascular Diagnostics, Inc. ("CVDI") today announced its financial results for the three months ended June 30, 2000.

Revenues for the 2000 second quarter were $1,377,000, an increase of 22% compared to the same period in 1999. The increase was due to a higher volume of test cards and controls. Operating expenses for the quarter were $2,062,000 compared to $1,554,000 in 1999, principally due to more personnel in administration and research and higher marketing expenses.

The loss from continuing operations for the quarter was $1,270,000 compared with $1,355,000 for the 1999 second quarter due to increased collaborative and interest income in the second quarter of 2000. After accounting for dividends to preferred shareholders and the non-cash amortization related to the beneficial conversion feature of the Series A Convertible Preferred Stock, the net loss for the 2000 second quarter was $2,047,000, or $0.27 per basic and diluted share, compared with a net loss of $2,338,000, or $0.31 per basic share, for the 1999 second quarter. Note that the 1999 second quarter net loss was impacted by the divestiture of the Coeur Laboratories division.

Revenues for the six months ended June 30, 2000 totaled $2,866,000, an increase of 34%,reflecting higher units of test cards and analyzers compared to the six-month period in 1999. Year-to-date operating expenses increased to $3,795,000 compared with $3,064,000 for the same period last year, mainly due to increased personnel, increased marketing costs and expected increases in normal recurring expenses. Other income (expense) increased during 2000 as a result of our development agreement with Bayer and due to increased interest income on higher cash balances. The resulting six-month loss from continuing operations was $2,301,000, compared with the six-month 1999 operating loss of $2,562,000. After accounting for dividends to preferred shareholders and the non-cash amortization related to the beneficial conversion feature of the Series A Convertible Preferred Stock, the net loss for the six months in 2000 was $3,526,000, or $0.47 per basic and diluted share, compared with a net loss of $3,370,000, or $0.45 per basic and diluted share for the same period in 1999. The 1999 six month net loss was impacted by the divestiture of the Coeur Laboratories division.

Commenting on the quarter, John Funkhouser, President and Chief Executive Officer, noted, "the second quarter, as well as the first half of 2000, exceeded our financial expectations. However, the strength of the Company continues to be its development of theranostic tests and various trials proving the importance of rapid testing in therapeutic decision making. The technology platform’s flexibility has the potential to rapidly manage low molecular weight heparins, thrombin inhibitors, platelets and certain sepsis therapies. In this regard, we are close to proving feasibility for our new platelet test; we are reformulating our sepsis test; and we have completed initial field trials on our low molecular weight heparin test and had an investigator review. We are continuing negotiations with three potential long term collaboration partners to ensure reagent sourcing and pharmaceutical participation and co-promotion of the test and drug together."

In regards to the Company’s platelet project, during the quarter PharmaNetics filed a patent application on technology developed for rapid platelet function tests for managing platelet inhibitor drugs. "Given the Company’s strategy of building and maintaining a technology platform capable of managing multiple therapeutics affecting coagulation, the potential addition of a platelet function would make our menu even more comprehensive," continued Mr. Funkhouser. "We believe that a successfully developed platelet test, along with tests in development for thrombin inhibitors and low molecular weight heparins, has significant market potential. We are positioning ourselves to be the leading rapid coagulation technology, and the leader in the emerging theranostic marketplace where rapid diagnostics can influence physicians therapeutic decision making and management."

PharmaNetics, Inc. develops, manufactures and markets rapid turnaround diagnostics to assess blood clot formation and dissolution. The Company develops tests based on its proprietary, dry chemistry Thrombolytic Assessment System for its principal target market of new drug compounds, some of which have narrow therapeutic ranges, as well as for monitoring routine anticoagulants. The Company’s therapeutic diagnostics are used to monitor the effect of antithrombotic agents in the treatment of angina, myocardial infarction (heart attack), stroke, deep venous thrombosis, and pulmonary and arterial emboli.

This press release contains forward-looking statements regarding future events and the future performance of PharmaNetics that involve risks and uncertainties, such as risks related to market acceptance, clinical trials, dependence on third-party distributors and collaborative partners, and continuing losses that could cause actual results to differ materially from those projected in the forward-looking statements. Information concerning these and other factors that could cause actual results to materially differ from those in the forward-looking statements is contained in the Company’s SEC filings, including Form 10-K, Form 10-Q and Form 8-K reports.