Enzo Biochem Strongly Positioned for Growth Opportunities, Annual Meeting Told

Board Elects Dr. Stephen Kent, Nationally Recognized Biomedical Researcher and University of Chicago Professor, a Director


Enzo Biochem, Inc. (NYSE: ENZ) is positioning itself for important growth in the years ahead, shareholders attending the annual meeting here were told.

Citing major pioneering patents awarded to the Company, Enzo President Barry Weiner told shareholders that fiscal 2006 was a bellwether year for Enzo. "We have added important building blocks to our already imposing foundation," he said. "With these patents, and our patent applications where interferences have been declared, we have an opportunity to secure strategic partnerships on favorable terms, and to capitalize IP assets with multiple participants relating to sizable markets, some estimated to be upwards of a billion dollars."

Among the patents that have been issued to Enzo, he pointed out, was one for labeling the phosphate portion of nucleic acids, either directly or indirectly, a technology that can be applied to a range of commercial products. Another patent award was for arrays, which permit the activities of thousands of individual genes to be measured simultaneously, and also has applications in determining the presence or absence of pathogens, changes in chromosomal DNA that are associated with diseases and in obtaining nucleic acid sequences information, among others. Both are important to new diagnostic and treatment methodologies that are currently evolving.

Mr. Weiner also noted that Enzo was declared the senior party in two interferences declared by the U.S. Patent and Trademark Office. One interference involves signal amplification in nucleic acid technology and is the basis for several significant products in clinical diagnostics and the life sciences currently being marketed. The other interference involves gel sequencing, which is the primary technique for sequencing DNA.

Mr. Weiner noted that the Company has strengthened its management team the past year with the appointment of new presidents for Enzo Life Sciences and Enzo Therapeutics, and a new Senior Vice President for Finance; that it has enhanced its capital as a result of a recent equity offering that has increased its cash at the end of calendar 2006 to over $114 million, with no debt; and the acquisition of an additional facility to accommodate increased activity at both Enzo Life Sciences and Enzo Clinical Labs.

Carl W. Balezentis, President of Enzo Life Sciences, told shareholders that Life Science's goals include maximizing the use of its vast intellectual property and increasing revenues through enhanced direct sales efficiencies, new product development, possible collaborations with major life sciences companies and possible acquisition of products, product lines and companies.

Enzo Therapeutics President Gary C. Cupit said that the Phase II studies involving treatments for Crohn's and NASH (nonalcoholic steatohepatitis) are in process. Shareholders were informed that Enzo Therapeutics also has instituted "thought leader" cultivation for implementing trials in Crohn's and uveitis in the U.S., and that the first patients for the HIV Phase I/II trials are being screened.

Shahram K. Rabbani, President of Enzo Clinical Labs, reported that the new third party payor agreements with Aetna and UnitedHealthcare/Oxford, along with increased esoteric test offerings, and organic expansion were currently driving the subsidiary's growth. Enzo Clinical Labs is planning to add specialized pathology assays, such as tumor identification studies, to its menu, and is exploring the addition of molecular genetics assays. He said that Enzo Clinical Labs is also seeking to expand geographically as well as into unique market niches, and towards that end was evaluating acquisition possibilities.

"For a company the size of Enzo, we have a great many projects underway, all of which present significant opportunities," said Mr. Weiner. "This past year we have expanded our management and scientific staffs, broadened our capabilities, enhanced our capital, added to our intellectual property and continue to determinedly pursue litigation which we believe will importantly benefit our Company and shareholders. We regard the outlook enthusiastically."

New Director Elected

Following the annual meeting, the Board of Directors announced the election of Stephen Brian Henry Kent, Ph.D., University of Chicago Professor of Biochemistry and Molecular Biology, and Director of the University's Institute for Biophysical Dynamics, as a director. In addition to receiving numerous honors, and serving on various scientific advisory boards, including that of the Biosciences Division at Argonne National Laboratory, Dr. Kent is the holder of 37 United States patents. He will serve as one of 5 independent directors on the 8-person Enzo board.

Shareholders at the annual meeting elected Messrs. Shahram Rabbani and Irwin C. Gerson as Class 1 directors, and ratified the appointment of Ernst & Young LLP as the Company's independent registered public accounting firm for the current fiscal year ending July 31, 2007.

About Enzo

Enzo Biochem is engaged in the research, development and manufacture of innovative health care products based on molecular biology and genetic engineering techniques, and in providing diagnostic services to the medical community. The Company's proprietary labeling and detection products for gene sequencing and genetic analysis are sold to the life sciences market throughout the world. The Company's therapeutic division is in various stages of clinical evaluation of its proprietary gene medicine for HIV-1 infection and its proprietary immune regulation medicines for hepatitis B and hepatitis C infection and for Crohn's Disease. Pre-clinical research is being conducted on several candidate compounds aimed at producing new mineral and organic bone, including technology that could provide therapy for osteoporosis and fractures, among other applications. The Company also holds a patent covering a method and materials for correcting point mutations or small insertions or deletions of genetic material that would allow for editing and correcting certain abnormalities in genes. The Company owns or licenses over 200 patents worldwide. For more information visit our website www.enzo.com.

Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. The Company disclaims any obligations to update any forward-looking statement as a result of developments occurring after the date of this press release.

Source: Enzo Biochem, Inc.