MINNEAPOLIS, Dec. 10 /PRNewswire/ -- CELLEX BIOSCIENCES, Inc.
(Nasdaq: CLXX), today announced that it will reorganize its debt under the
protection of U.S. Federal Bankruptcy laws, as a voluntary bankruptcy case
under United States Code Chapter 11. To this end, the company said that it
filed a Consent to Order for Relief with the U.S. Bankruptcy Court, District
of Minnesota, on December 8, 1998, and is now operating as a
debtor-in-possession pursuant to Chapter 11. This reorganization under Chapter
11 replaces the original recapitalization plan announced on July 1 of this
year.
    Cellex was the subject of an involuntary bankruptcy petition filed with
the same Bankruptcy Court on October 6, 1998, by three of the company's
unsecured creditors. By request of the petitioning creditors and by a
stipulation, the company was granted until December 4, 1998, to file its
answer to the involuntary petition. The company said that it is facilitating a
negotiated and consensual plan of reorganization by and among its various
creditors. Cellex also indicated that potential new investors had been
identified to provide the necessary capital to fund its reorganization and
ongoing operations. In addition, the company expects to complete
debtor-in-possession financing within the next ten days and to file a
consensual plan of reorganization upon the completion of due diligence by the
new investors. The reorganization is expected to be completed by the end of
June 1999.
    CELLEX BIOSCIENCES, Inc. is dedicated to providing cell processing
products and services to meet the needs of human health care and biotechnology
markets worldwide with perfusion technology, as well as stirred tank cell
culturing systems and freeze dryers. The company's innovative perfusion
bioreactors are generally used by diagnostic and emerging biotechnology
companies. CELLEX BIOSCIENCES is headquartered in Minneapolis, Minn.
    The statements contained in this press release that are forward-looking,
including those which relate to the company's ability to obtain
debtor-in-possession financing and to successfully file 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 such additional debtor-in-possession financing would have
a material adverse effect on the company, including requiring the company to
curtail, and possibly cease operations. Moreover, even if additional financing
is obtained and a plan of reorganization is successfully filed, it remains
probable that holders of the company's common stock will realize little, if
anything, 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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