Gensia Sicor Announces Private Placement of Units and Declares Quarterly Dividend

IRVINE, Calif. (ots-PRNewswire) - Gensia Sicor Inc. (Nasdaq: GNSA) today announced that it has privately placed approximately 4 million Units at a purchase price of $4.00 per Unit. Each Unit will consist of one share of Common Stock and a Warrant to purchase one-tenth share of Common Stock at a per share exercise price of $5.75. In addition, the Company has received written purchase agreements for an additional 2.175 million Units that are expected to close on approximately June 10, 1999. Furthermore, the Company expects that Mr. Carlo Salvi, president and chief executive officer, will purchase 2.5 million Units for $10 million. In connection with the transaction, the Company will repay the loan of $10 million made by Mr. Salvi to the Company in December 1998, eliminating approximately $800,000 in annual interest payments for the Company.

The offering, including the participation of Mr. Salvi, would result in proceeds to the Company of approximately $35 million. The Units were sold directly by Gensia Sicor to private investors and there will be no commissions or fees paid to third parties in connection with this transaction. Gensia Sicor intends to use the proceeds to retire short-term and long-term debt, including the repayment of Mr. Salvi's loan to the Company, and for general corporate purposes.

The securities have not been registered under the Securities Act of 1933 and may not be resold absent registration or an applicable exemption from registration. As part of the transaction, Gensia Sicor agreed to file a registration statement on Form S-3 with the Securities and Exchange Commission to cover the resale of the Common Stock no later than 180 days following the closing of this transaction. If a purchaser sells the Common Stock purchased in the Unit offering prior to December 31, 2000, then the purchaser will not be issued the Warrant component of the Unit. With the issuance of the shares expected in this private placement, Gensia Sicor will have approximately 89 million shares issued and outstanding.

The Company also reported that its Board of Directors has set a record date of May 21, 1999 for the preferred stock quarterly dividend payment of $1.5 million payable June 1, 1999.

Gensia Sicor Inc. is a vertically integrated pharmaceutical company with proven expertise in the development, manufacturing and marketing of injectable pharmaceuticals and in the production of active pharmaceutical ingredients utilizing synthesis or fermentation. The company is focused on the worldwide oncology and injectable pharmaceutical markets. Gensia Sicor's commercial pharmaceutical businesses include Gensia Sicor Pharmaceuticals, Inc., a California-based manufacturer and marketer of multisource injectable drugs, SICOR-Societa Italiana Corticosteroidi S.p.A. and Diaspa S.p.A., both of Milan Italy, and Sicor de Mexico, S.A. de C.V. in Toluca, Mexico all which produce active pharmaceutical ingredients, and Lemery, S.A. de C.V. in Mexico City which manufactures injectable and oral finished multisource drug products. Gensia Sicor's company offices are located in Irvine, CA.

This press release contains forward looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements and those matters set forth in the risk factors section of Gensia Sicor's filings on Forms 10-K and 10-Q with the Securities and Exchange Commission. These forward looking statements represent the Company's judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward looking statements.

For more information on the Company, visit Gensia Sicor's new web site at www.gensiasicor.com. News releases are also available at no charge through PR Newswire's News On-Call fax service. For a menu of available news releases or to retrieve a specific release made by Gensia Sicor, call 800-758-5804, extension 354050. Please retain these numbers for future reference.

ots Original Text Service: Gensia Sicor Inc.
Internet: http://www.newsaktuell.de

Contact: Laurie W. Little of Gensia Sicor Inc., 949-455-4879; or Carolyn Bass or Jim Byers, 415-296-7383, or Patricia Walsh or Mark Owen, 212-850-5600, all of Morgen-Walke Associates, Inc., for Gensia Sicor Inc.

Company News On-Call: http://www.prnewswire.com/comp/354050.html or fax, 800-758-5804, ext. 354050

Web site: http://www.gensiasicor.com

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