MINNEAPOLIS, Feb. 11 /PRNewswire/ -- CELLEX BIOSCIENCES, Inc.
(OTC Bulletin Board: CLXX), today announced that the United States Bankruptcy
Court, District of Minnesota, on February 4 approved a debtor-in-possession
(DIP) financing agreement between the company and its new investor, Biovest,
LLC. Pursuant to this agreement, Cellex Biosciences received an initial
advance of $500,000 from Biovest on February 5 and an additional advance of
$185,000 on February 8. The company anticipates filing its disclosure
statement and consensual plan of reorganization by February 17, 1999, at which
time it should receive an additional advance in the amount of $250,000 from
Biovest. The advances from Biovest of $500,000 and $250,000 bear interest at
the annual rate of ten percent.
    In addition to providing debtor-in-possession financing, Biovest has
agreed to finance the reorganization of the company. The company said pursuant
to this agreement with Biovest, the company will propose a plan of
reorganization that would provide for Biovest to receive a majority of the new
capital stock of Cellex Biosciences. Any plan of reorganization is subject to
approval by the U.S. Bankruptcy Court.
    Richard E. Sakowicz, CEO and President of Cellex Biosciences commented:
"The company has made good progress in its reorganization. Having reached
agreement on the DIP financing, we can now turn our attention to developing a
consensual plan of reorganization and emerging from the reorganization in an
expedited timeframe. This company and Biovest are firmly committed to
providing our customers with the highest quality products and service both
during this reorganization period and into the future."
    In another order issued by the Bankruptcy Court on February 3, the Court
approved a form of notice to be sent to equity security holders advising them
that the company does not anticipate that they will receive anything on
account of their shareholdings under any plan of reorganization that might be
proposed.  Until further notice, shareholders will not be able to file proofs
of interest with the Court and will not be receiving any further notices from
the Court.
    Cellex Biosciences provides advanced cell culture technology -- through
patented systems and contract production services -- to pharmaceutical,
diagnostic and biotechnology companies as well as leading research
institutions worldwide. Cell culture is a key process used by these
organizations for the creation of novel proteins and monoclonal antibodies
needed to detect and treat human diseases such as cancer and AIDS. Cellex
Biosciences' corporate headquarters, R&D, contract cell culture and
manufacturing operations are located in Minneapolis, Minn.
    The statements contained in this press release that are forward-looking,
including those which relate to the company's ability to successfully file a
disclosure statements and a plan of reorganization, are subject to risks and
uncertainties which could cause actual results to differ materially from the
statements made herein. Any inability to obtain confirmation of its plan of
reorganization would have a material adverse effect on the company, including
requiring the company to curtail, and possibly cease operations. Moreover,
even if a plan of reorganization is successfully filed, it is now anticipated
that holders of the company's common stock will realize nothing on their
investment. Additional risks and uncertainties related to the company have
been included in the company's filings made with the Securities and Exchange
Commission.

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