MELVILLE, N.Y., Jan. 19 /PRNewswire/ -- V. I. Technologies, Inc.
(Nasdaq: VITX) today announced financial results for the fourth quarter and
year ended January 2, 1999.  For the quarter, the Company posted net income of
$1,025,000, or $0.08 per share.  These results compare to a net loss of
$4,044,000, or $0.52 per share, incurred in the year-ago quarter.  Revenue for
the quarter was $10,028,000 compared to $4,510,000 from the year-ago quarter.
    The current quarter's results included a $644,000 non-cash gain related to
the discounting of a $3.0 million non-interest bearing advance from the
American National Red Cross (ANRC).  Excluding this non-recurring item, the
Company's net income for the quarter would have been $381,000, or $0.03 per
share.
    For the year ending January 2, 1999, revenue totaled $33,755,000 compared
to $15,843,000 for the year ended December 31, 1997.  The Company reported a
net loss of $6,400,000, or $0.61 per share, for the year, compared to a net
loss of $11,700,000, or $1.62 per share, for the prior year.
    The most significant event in the quarter was the extension of the
exclusive agreement between VITEX and the ANRC for the distribution of
PLAS+SD.  The restructured ANRC agreement provides for a minimum of $50
million in orders over the two-year period of the agreement.  In addition, the
agreement sets out a new repayment schedule for the $3.0 million advance which
is recorded at its net present value of $2,356,000.
    VITEX continued to strengthen its manufacturing process in both plasma
fractionation and in PLAS+SD resulting in improved margins from previous
quarters.  Factors contributing to the margin improvement included:

    -- Higher pricing under the renegotiated ANRC agreement;
    -- Manufacturing cost reductions implemented during the quarter including
       a reduction in staffing;
    -- Strong yields in the production of PLAS+SD and yield improvements in
       fractionation.

    John Barr, V.I. Technologies' President and Chief Executive Officer
commented, "We ended our first year as a public company on a high note.  This
was a year of accomplishment for VITEX that included FDA approval and market
launch of PLAS+SD, successful completion of an IPO raising $40 million, a new
partnership with Pall Corporation for viral inactivation of red cells, and the
cost effective scale up of the new PLAS+SD manufacturing process.  We also
continued to make solid progress with our R&D programs in both fibrin sealant
and red cells."
    Mr. Barr added, "Hiring of our new sales force was accomplished in the
fourth quarter and training was completed last week.  The sales force is now
out calling on hospitals and working with our partner, the American National
Red Cross to continue to increase sales of PLAS+SD."
    VITEX is a leading developer and manufacturer of a broad portfolio of
blood products that utilize its patented viral inactivation technologies
designed to ensure safe blood products.  The technologies are tailored for all
blood component applications and other blood-derived products, including
plasma, plasma derivatives, red blood cells and platelets.  The first of
VITEX's virally-inactivated products, PLAS+SD, is the only FDA approved method
for viral inactivation of plasma.
    Central to VITEX's strategy are collaborations to accelerate the
commercialization of its products.  These include agreements with Bayer
Corporation to supply plasma fractions, the American National Red Cross to
distribute PLAS+SD, United States Surgical Corporation for the development and
distribution of fibrin sealant and Pall Corporation for the development and
distribution of systems for the viral inactivation of red blood cells and
platelets.
    Except for the historical information contained herein, the matters
discussed are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.  These
statements involve risks and uncertainties, such as quarterly fluctuations in
operating results, the timely availability of new products, market acceptance
of the company's products, the impacts of competitive products and pricing,
government regulation of the company's products and other risks and
uncertainties set forth in the company's filings with the Securities and
Exchange Commission.  These risks and uncertainties could cause actual results
to differ materially from any forward-looking statements made herein.


                           V. I. Technologies, Inc.
                        Selected Financial Information
                      Condensed Statements of Operations
                     (In thousands, except for share data)

                                     Thirteen
                                       Weeks  Three Months Fifty-two
                                       Ended      Ended     Weeks
                                       Jan. 2,   Dec. 31,   Ended  Year Ended
                                       1999       1997      Jan. 2,   Dec. 31
                                   (Unaudited) (Unaudited)   1999      1997

    Revenue                          $10,028    $4,510    $33,755   $15,843
      Costs and expenses:
      Cost of sales                    5,937     3,435     23,860    16,326
      Research and development, net    2,219     2,285      7,507     5,912
      Selling, general and
        administrative                 1,764     1,979      6,951     4,353
      Charge related to Pall research
        collaboration                      -         -      2,202         -
    Total operating costs and expenses 9,920     7,699     40,520    26,591
      Income (loss) from operations      108    (3,189)    (6,765)  (10,748)
      Interest income (expense), net     273      (855)      (279)     (952)
      Discount on customer advance, net  644         -        644         -
      Total interest income (expense),
        net                              917      (855)       365      (952)
    Net income (loss)                 $1,025   $(4,044)   $(6,400) $(11,700)

    Basic and diluted net income (loss)
      per share                        $0.08    $(0.52)    $(0.61)   $(1.62)

    Weighted average shares used in
      calculation of:
      Basic earnings per share        12,314     7,844     10,454     7,241
      Diluted earnings per share      12,717     7,844     10,454     7,241


                           Condensed Balance Sheets
                                (In thousands)

                                                  January 2,     December 31,
                                                    1999               1997

        Cash and cash equivalents                  $35,264          $ 5,250
        Trade receivables                            3,967            1,355
        Inventory                                    2,512              575
        Other current assets                         1,894            1,216
        Property, plant & equipment, net            30,821           29,050
        Other assets                                   767              721
        Total assets                               $75,225          $38,167

        Current liabilities                        $10,535          $11,171
        Long-term debt                              11,055           15,318
        Stockholders' equity                        53,635           11,678
        Total liabilities and stockholders' equity $75,225          $38,167

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