Guilford Pharmaceuticals Reports First Quarter 1999

Results Baltimore (PROTEXT) - Guilford Pharmaceuticals Inc. (Nasdaq:GLFD) today reported financial results for the first quarterended March 31, 1999. In the first quarter, Guilford reported anet loss of $8.5 million, or $0.44 per share, compared to a netloss of $7.1 million, or $0.36 per share, in the first quarter of1998. Revenues for the first quarter of 1999 increased to $2.9million compared to $2.4 million for the same period in 1998.Increased revenues in the first quarter reflect an increase intransfer sales of GLIADEL(R) Wafer to Guilford's partner, Rhone-Poulenc Rorer. Net product sales during the first quarterincreased to $1.2 million in 1999 from $658,000 in 1998. Research and development costs increased to $9.1 million inthe first quarter of 1999 from $8.7 million in the first quarterof 1998. Research and development expenditures increased due tocosts associated with the preclinical development of Guilford'searly stage neurological and drug delivery programs. General andadministrative costs were $3.5 million in the first quarter of1999 compared to $2.5 million in the first quarter of 1998. Theincrease was largely attributable to increased expendituresrelating to Guilford's intellectual property. "During the first quarter, our total revenues increased 21%over the same period last year while our R&D costs increased lessthan 5%. While we continue to control our general andadministrative expenses, the cost of expanding and managing ourpatent estate continues to grow and we are taking specific stepsto minimize further increases in this area," commented Dr. CraigR. Smith, President and CEO. "Our Company's cash position remains strong and our productdevelopment programs continue to make solid progress. We are ontarget to introduce three novel product candidates in threedifferent therapeutic areas into clinical trials this year." Guilford Pharmaceuticals Inc. is a biopharmaceutical companyengaged in the development of polymer-based therapeutics forbrain cancer and other cancers, and novel products for thetreatment of neurological diseases, including Parkinson'sdisease, Alzheimer's disease, stroke, head trauma, spinal cordinjuries, multiple sclerosis, and peripheral neuropathies.

GUILFORD PHARMACEUTICALS INC.

AND SUBSIDIARIES

Financial Highlights

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended March31,

1999

1998 Revenues: Product sales

1,192

658 License and royalty revenues

547

580 Revenues under collaborative agreements 1,137

1,144

Total revenues

2,876

2,382 Costs and expenses: Cost of sales

630

339 Research and development

9,127

8,655 General and administrative

3,521

2,517

Total costs and expenses

13,278

11,511 Loss from operations

(10,402)

(9,129) Interest and other income, net

1,905

2,055 Net loss

$(8,497)

$(7,074) Basic and diluted (loss) per share

$(0.44)

$(0.36) Shares used in the calculation of basic and diluted (loss) per share

19,491

19,411

Condensed Consolidated Balance Sheets

(In thousands)

March 31, December 31,

1999

1998

(Unaudited) (Audited) Assets Cash, cash equivalents and investments

$117,625

$128,261 Plant and equipment, net

18,297

18,790 Inventories

1,316

1,291 Other assets

2,781

2,686

$140,019

$151,028 Liabilities and Stockholders' Equity Current liabilities

$12,049

$11,883 Long-term debt, net of current portion

8,227

8,766 Stockholders' equity

119,743

130,379

$140,019

$151,028 Internet Address:

http://www.guilfordpharm.com For Press Releases: http://www.prnewswire.com This press release contains forward-looking statements thatinvolve risks and uncertainties, including those described in thesection entitled "Risk Factors" contained in the Company's AnnualReport on Form 10-K for the year ended December 31, 1998, thatcould cause the Company's actual results and experience to differmaterially from anticipated results and expectations expressed inthese forward-looking statements. Among other things, there canbe no assurance that the Company will be able to successfullycomplete all work necessary to put any of its preclinical leadsinto clinical trials in a timely and cost-effective manner, if atall, or meet and earn development milestones under existingcollaboration. NOTE TO INVESTORS:

CONFERENCE CALL ALERT!

Tuesday, May 4th

GUILFORD

P H A R M A C E U T I C A L S

(Nasdaq: GLFD)

WILL DISCUSS ITS

1999 FIRST QUARTER RESULTS

VIA CONFERENCE CALL

from 11:00 a.m. to 12:00 p.m. (Eastern Time)

Tuesday, May 4, 1999

Dial In Number:

(USA) 212-896-6031

There will be a question and answer session

following management's comments. Playback dial in number: 800-633-8284 (int'l callers (USA)619-812-6440), then dial reservation number 12160160. Theplayback will run from 1:00 p.m. EDT on

May 4th through 1:00 p.m. on May 5th.

If you have any questions, please contact

Stacey Jurchison (USA) 410-631-5022 or

Angela Rubin (USA) 410-631-6449. ots Original TextService: Guilford Pharmaceuticals Inc. Internet:http://www.newsaktuell.de Contact: Stacey Jurchison or AngelaRubin of Guilford Pharmaceuticals (USA) 410-631-6300 CompanyNews On-Call: http://www.prnewswire.com/comp/112882.html orFax: (USA) 800-758-5804, ext. 112882 Web site:http://www.guilfordpharm.com

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