Third Quarter Operating Highlights
    * Company moves to Amex
    * Japanese patent protection for ImmTher(R)
    * Second Orphan Drug designation for ImmTher(R)
    * Phase II ImmTher(R) trials set for Sloan-Kettering
    * Second drug delivery venture with Elan

    CHICAGO, Nov. 10 /PRNewswire/ -- Endorex Corporation (Amex: DOR) today
reported results for the third quarter ended Sept. 30, 1998.  The Company
reported a net loss of approximately $1.5 million, or a loss of $0.17 per
diluted share, for the three months ended Sept. 30, 1998, as compared with a
net loss of $0.6 million, or a loss of $0.33 per diluted share, for the year
ago quarter.
    Net loss for the nine months ended Sept. 30, 1998, was $12.3 million, or a
loss of $1.28 per diluted share, compared with a loss of $1.8 million, or a
loss of $1.36 per share, for the comparable nine months of 1997.  The current
year-to-date loss was due primarily to the Company's previously reported
$8 million equity loss reflecting Endorex' share of an initial license fee
paid by its January 1998 oral vaccine joint venture ("Innovax") with Elan
Corporation, plc. (NYSE: ELN).  Elan also invested $8 million in Endorex
convertible preferred stock, effectively offsetting the impact of the license
fee on the balance sheet.
    Net loss for the current quarter increased approximately $0.9 million from
the third quarter of 1997, principally due to increased research and
development expenses.  R&D expenses increased in the current quarter because
of the Company's work at its new R&D center in Lake Forest, Ill. as part of
its Innovax joint venture with Elan for the oral delivery of vaccines.
    Weighted average common shares outstanding for the quarter increased to
9,943,532 from 1,329,322 last year as a result of the Company's successful
$20 million private placement in October 1997 and a $2 million common stock
investment by Elan in January 1998.

    Move to the Amex could help trading volumes, liquidity
    During the quarter, the Company reported that its common stock had moved
to trading on the American Stock Exchange under the symbol "DOR".  On Nov. 5
an additional 1.7 million shares from the aforementioned private placement
were available for trading with the expiration of a previous lock-up period.
As of today, approximately 5.2 million shares from the private placement are
available for trading.
    "Our move to the Amex is an essential step in our evolution as a public
company," said Michael Rosen, president and chief executive officer.
"Combined with the registration for sale of approximately 8.6 million common
shares that had previously been part of a private placement in 1997, we
believe that moving from the OTC Bulletin Board to Amex will help our trading
volumes and liquidity."

    Second Orphan Drug designation, second clinical site
    Among the other highlights in the quarter, a second FDA Orphan Drug
designation for ImmTher(R), a drug therapy for treating pediatric bone cancer,
and patent protection for ImmTher(R) in the Japanese market and the initiation
of patient enrollment for the second major cancer site of ImmTher(R).
    "This new Orphan Drug designation, for the treatment of osteosarcoma, a
bone cancer in children and young adults, now means that our ImmTher(R) cancer
drug has been designated for the treatment of the two most prevalent forms of
pediatric bone cancer," said Rosen.  "Additionally, in the third quarter we
learned that ImmTher(R) will also be evaluated for efficacy as an adjunctive
therapy for Ewing's Sarcoma at a second Phase II site, Memorial
Sloan-Kettering Cancer Center in New York City, in addition to the first site
at M.D. Anderson Cancer Center in Houston."
    According to Rosen, the issuance of a Japanese patent (no. 2724338) which
covers composition for macrophage activation for ImmTher(R) is part of the
Company's long-term growth strategy.  "We feel it is essential to establish
our products in the Japanese oncology market -- one of the world's largest,"
said Rosen.  "As a result of our recent visit with a number of major
pharmaceutical companies in Japan, we have seen a high level of interest in
pursuing development of our cancer products there."

    Second Joint Venture with Elan
    Last month the Company announced its second joint venture with Elan.
"We are very excited about our second joint venture with Elan," noted Rosen.
"We will be doing exclusive research, development and commercialization of
certain drugs using Elan's Medipad(TM) delivery system.  This lightweight,
painless, disposable system, which combines the simplicity of a patch with the
extensive delivery capabilities of an infusion pump, diversifies the drug
delivery alternatives we hope to eventually offer into the area of
life-threatening disease management.
    Because of the Company's increased efforts to expand and accelerate oral
delivery R&D programs and cancer drugs clinical programs, Rosen said that the
Company's net loss -- or "burn rate" --  could continue to increase in the
fourth quarter.
    Endorex Corporation is a drug delivery and cancer products company.
Orasomal Technology, Inc., Endorex's oral delivery subsidiary, licensed
technology from the Massachusetts Institute of Technology that is being
developed to deliver vaccines, proteins and peptides.  Earlier this year,
Endorex formed a joint venture with Elan Corporation, plc, to develop oral
delivery systems for human and animal vaccines.  Endorex is focusing on two
innovative directions in cancer therapy: immunotherapy and natural
chemotherapy.  Two Endorex drugs have entered into multiple Phase II clinical
trials: ImmTher(R), an immunomodulator, and Perillyl alcohol, a new
monoterpene.
    The statements made in this press release contain certain forward-looking
statements, within the meaning of Section 21E of the Securities Exchange Act
of 1934, as amended, that involve a number of known and unknown risks and
uncertainties.  Such statements are only predictions and actual events or
results in future periods may differ materially from what is currently
anticipated.  In addition to the matters described in this press release, risk
factors as described from time to time in Endorex's filing with the Securities
and Exchange Commission, including, but not limited to, its most recent
reports on Form 10-QSB and Form 10-KSB, may affect the results achieved by
Endorex.  The Company assumes no obligation to update the information in this
release.


                           Endorex Corporation 1998 Third Quarter Results

    Results of Operations                 Three months ended September 30,
                                                1998                1997
    Revenues                                    $--                 $--
    Operating expenses                    1,699,465             595,217
    Net loss                             (1,519,576)           (588,498)
    Basic and diluted net loss per share    $(0.17)              $(0.33)
    Average shares outstanding            9,936,000           1,810,230

    Nine months ended September 30,            1998                1997
    Revenues                                    $--                 $--
    Operating expenses                    4,871,999           1,841,892
    Net loss                            (12,265,520)         (1,827,224)
    Basic and diluted net loss per share     (1.28)                (1.36)
    Average shares outstanding            9,943,532           1,329,322

    Financial Position                       September 30, 1998

    Cash and cash equivalents                $14,103,207
    Working capital                           15,099,371
    Total assets                              16,656,742
    Long term debt                                    --
    Stockholders' equity                      15,968,758

    Stock Information                        November 9, 1998

    Symbol (Amex)                               DOR
    Recent price                                   $2.25
    Shares outstanding                         9,936,000
    Market capitalization                    $22,400,000

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