HemaCare announces research and development changes and current developments.

LOS ANGELES--(BUSINESS WIRE)--Jan. 17, 1995--HemaCare Corp. (NASDAQ:HEMA) Tuesday announced strategic and operational changes involving its wholly owned subsidiary, HemaBiologies Inc. (HBI), and the research and development related to Immupath, an anti-HIV hyperimmune plasma, a potential treatment

Because of the company's limited cash resources and regulatory delays involving the U.S. Food and Drug Administration (FDA), and to reduce the financial drain on its core blood products and services business, the company plans to take the steps described below over the next 60 days.

In addition, the company intends to seek more focused financing for HBI and Immupath separate from the financing of expansion of its historically profitable and cash flow positive core blood products and services business.

Product Redirection -------------------

The company has decided to focus its efforts on the ultimate commercial form of Immupath, a multi-step fractionated intravenous immunoglobulin (IVIG) preparation consisting of the same neutralizing antibodies to HIV as the current first generation whole plasma product. With a whole plasma product, like the first generation of Immupath, the company now believes that it will face more potential difficulties related to sterilization, stability and product uniformity than with an IVIG product.

Therefore, the company will no longer seek FDA approval to conduct Phase III clinical trials of the current whole plasma, first generation version of Immupath, which are on clinical hold pending FDA review of the results of an independent laboratory's study of the sterilization method used for the product.

The second generation IVIG version of Immupath will be sterilized by a method currently in wide commercial use. To this end, the company has signed an agreement with the New York Blood Center to utilize this sterilization method known as solvent/detergent.

Operations ----------

In order to conserve cash, HBI and Immupath research and development expenses will be significantly decreased by reducing staff, reducing the number of active plasma donor centers and curtailing activities of the plasma processing facility. The company will make every effort to continue the treatment of the patients from the Phase I/II clinical trial with the first generation whole plasma Immupath product.

According to Hal Lieberman, HemaCare's president and CEO, "Our goal is to preserve the basic assets of the Immupath program without jeopardizing the financial health of HemaCare and its core blood products and services business.

"The core business continues to generate positive cash flow and we believe that there is currently a window of opportunity for a national roll-out of these and related businesses. We are currently in discussions with potential corporate partners and other potential financing sources for such an expansion.

"We are also continuing our efforts to finance the research and development of the second generation IVIG version of Immupath and will move forward when the necessary financing has been obtained."

Research and Development Update -------------------------------

An abstract recently authored by company personnel describing a study of donors whose blood plasma is the source of Immupath has been accepted for presentation to the American Society for Apheresis.

The study demonstrates that donating high antibody, anti-HIV hyperimmune plasma is not only safe, but in many cases, donor CD4 T-cell levels decreased more slowly than would be expected.

Recently an independent university laboratory tested Immupath against a wide variety of field strains of HIV and found that it was effective in neutralizing all strains tested. This observation is significant because HIV mutates rapidly, resulting in the virus becoming resistant to currently available anti-HIV drugs.

The broad-based activity demonstrated by Immupath against a wide variety of strains may suggest advantages over existing anti-viral drugs.

Corporate Background --------------------

HemaCare has been a leading provider of hemapheresis-derived blood products and services since its inception in 1979.

In addition to providing mobile therapeutic hemapheresis services to hospitals in southern California and northern Georgia, the company also provides blood component products produced by utilizing hemapheresis technology, together with comprehensive donor-screening procedures which reduce the patient risk of contracting hepatitis, AIDS and other diseases potentially transmitted by blood transfusions.

Since 1990, HemaCare has conducted a Phase I/II clinical trial to establish the safety and efficacy of Immupath anti-HIV hyperimmune plasma as a potential treatment for HIV/AIDS. The company holds proprietary rights under a U.S. patent and U.S. FDA orphan drug status.

Results of the 220-patient Phase I/II study, reported in early 1993, demonstrated that Immupath improved immune competence as measured by CD4 cell counts and improved survival in certain patient groups.

CONTACT: HemaCare Corp.

Hal I. Lieberman/Thomas M. Asher/JoAnn Stover,

818/986-3883