Purchase Includes Five Year Contract Valued at up to $450 Million
      Over Five Years to Supply Key Intermediates and Active Ingredients

    WELLESLEY, Mass., and DUDLEY, NORTHUMBERLAND, England, July 7 /PRNewswire/
-- ChiRex Inc. (Nasdaq: CHRX), a leading pharmaceutical Contract Manufacturing
Organization, and Glaxo Wellcome plc announced today that they have signed a
letter of intent for ChiRex to acquire Glaxo Wellcome's cGMP pharmaceutical
production facility at Annan, Scotland.  As part of the proposed agreement,
Glaxo Wellcome will award ChiRex a five year contract of up to $450 million
(270 million pounds), of which $250 million (150 million pounds) is
guaranteed, to supply certain pharmaceutical intermediates and active
ingredients.
    "Glaxo Wellcome has more than 15 years of positive experience with the
ChiRex team, and we have found them to be both reliable and dedicated to the
highest quality of product manufacturing," said David Pulman, Ph.D., Director
of International Actives Supply, Glaxo Wellcome.  "We view this five year
supply agreement as the continuation of a long-term relationship with an
organization that has an exciting combination of manufacturing expertise and
innovative technologies," Dr. Pulman added.
    "This agreement is of major strategic importance to ChiRex," said Alan R.
Clark, Chairman and CEO of ChiRex.  "It significantly expands our production
capacity, and ensures a major revenue stream into the next decade.  Moreover,
it positions us to produce ingredients for some of the most significant
compounds in the healthcare industry, and to accelerate the commercialization
of several of our proprietary chiral building blocks that are rapidly emerging
from the ChiRex development pipeline.  We are extremely pleased to enhance our
long-standing relationship with Glaxo Wellcome."
    The proposed agreement calls for ChiRex to purchase all of the buildings,
land and equipment at the 154-acre Annan, Scotland property, encompassing
three main production buildings, for 40 million pounds (approximately $66
million), plus certain working capital.  Under the agreement, ChiRex will
continue to manufacture products currently made at Annan and plans to invest
30 million pounds (approximately $48 million) over five years to accommodate
newly contracted products and to modify the facility for general purpose
manufacturing.  ChiRex intends to use senior bank debt as a source of capital
for the facility purchase and modification.  The sale is expected to close
later this year, and ChiRex anticipates retaining a substantial majority of
the 170 individuals currently employed at the facility.
    ChiRex is a Contract Manufacturing Organization serving the outsourcing
needs of the pharmaceutical industry through its extensive pharmaceutical fine
chemical manufacturing and process development capabilities and proprietary
technologies.  For fiscal year 1996 ended December 31, 1996, the Company
reported total revenues of $89.8 million, of which $50.1 million represented
core revenues.  The Company supports and supplements the in-house development
and manufacturing capabilities of its pharmaceutical and biotechnology
customers with a broad range of fully-integrated services, accelerating the
time from drug discovery to commercialization.  ChiRex currently produces 54
products, of which 29 are core products, in its world-class, cGMP
manufacturing facilities located in Dudley, Northumberland, England.  ChiRex
holds 54 patents and patent applications in the field of chiral
chemistry.
    Glaxo Wellcome is a research-based company committed to fighting disease
by bringing innovative medicines and services to patients throughout the world
and to the healthcare providers who serve them.
    This press release contains forward-looking statements regarding the
transaction, which is subject to completion of definitive documentation and
other prerequisites for the debt financing arrangements, the receipt of
required regulatory and other consents and licenses, the definitive agreement
between the parties, and other customary conditions.  This release also
contains forward-looking statements regarding the future operation of the
facility, assuming the transaction is completed.  These statements involve
risks and uncertainties including, but not limited to, successful transfer of
the facility, the cost and timing of capital improvements, the ability to
operate the facility efficiently, product development and manufacturing risks,
changes in demand for Glaxo Wellcome's products and for ChiRex's products due
to competition or other changes in the market, developments regarding
licensing and intellectual property rights, changes in environmental and other
regulations, and other risks identified in ChiRex's Securities and Exchange
Commission filings.  Actual results may differ materially from expected
results.  ChiRex undertakes no obligation to publicly release any revisions to
these forward-looking statements to reflect events or circumstances after the
date hereof.

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