<TABLE>
<CAPTION>
BIORELEASE CORP
(A DEVELOPMENT STAGE ENTERPIRSE)
PROFORMA BALANCE SHEET
SEPTEMBER 30, 1996
(Unaudited) Elimination Proforma Proforma Proforma
ASSETS BCORP BTI TPI Adjustments Adjustments A/E # Results
<S> <C> <C> <C> <C> <C> <C> <C>
Cash ......................................... 156 0 23589 0 23745
Cash - held as collateral .................... 0 0 0 0
Investments in government securities ......... 0 0 0 0
Investments in government backed securities .. 0 0 0 0
Accounts receivable, trade ................... 0 192 0 (192) 5 0
Accounts receivable-affiliate ................ 3668534 0 5000 (3673534) 1,2 0
Inventories .................................. 0 27679 0 (27679) 5 0
Deferred income taxes ........................ 0 0 0 0 0
Other receivables ............................ 1015 0 0 0 1015
Prepaid expenses and other current assets .... 2311 0 0 0 2311
------- ------- ------- ------- ------- -------
Total current assets .................... 3672016 27871 28589 (3673534) (27871) 27071
Equipment and leasehold improvements, net .... 27044 0 0 27044
Investments, net ............................. 4582 0 0 (4582) 8 0
Investments in subsidiaries .................. 0 3668534 (3668534) 1,6 0
Notes receivable - long term.................. 0 0 0 0
Intangible assets, net ....................... 0 36110 0 (36110) 5 0
Deverred income taxes - long term............. 0 0 0 0 0
Other noncurrent assets ...................... 398 300 0 0 (300) 5 398
Deferred underwriting fees for future offering 0 0 12500 12500
Deferred legal fees for future acquisition ... 14811 0 0 14811
------- ------- ------- ------- ------- -------
Total assets ............................ 3718851 64281 41089 (5000) (3737397) 81824
======= ======= ======= ======= ======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable ............................. 28993 65453 3215 0 (65453) 5 32208
Accounts payable - affiliate ................. 5000 3668534 0 (5000) (3668534) 2,4 0
Accrued expenses ............................. 70779 25841 375 0 (25841) 5 71155
Notes payable - stockholders ................. 0 58100 80000 (58100) 5 80000
Income taxes payable ......................... 0 1549 0 (1549) 5 0
Deferred income taxes ........................ 0 0 0 0 0
Other current liabilities .................... 1748 4000 0 (4000) 5 1748
------- ------- ------- ------- ------- -------
Total current liabilities ............... 106520 3823477 83590 (5000) (3823477) 185110
Notes payable - stockholders ................. 102689 14955 0 (25476) 5 102689
Deferred income tax........................... 0 16000 0 0 0 0
------- ------- ------- ------- ------- -------
Total liabilities ....................... 209209 3848952 83590 (5000) (3848952) 267799
------- ------- ------- ------- ------- -------
Stockholders' equity:
Common stock.................................. 99217 5047 1 (1) (34835) 2,5,7,8,9 69428
Additional paid-in capital.................... 6989159 2129673 0 1 (2099885) 2,3,4,5,7,8,9 7018948
Development stage accumulated deficit.........(3524234)(5919391) (42501) 2246275 5,6,8 (7239851)
Stock subscriptions receivable................ (50000) 0 (1) (50001)
------- ------- ------- ------- ------- -------
3514142 (3784671) (42501) 0 111555 (201475)
Less: Treasury stock........................ (4500) 0 0 (4500)
------- ------- ------- ------- ------- -------
Total stockholders' equity.................... 3509642 (3784671) (42501) 0 111555 (205975)
------- ------- ------- ------- ------- -------
Total liabilities and stockholders' equity.... 3718851 64281 41089 (5000) (3737397) 81824
======= ======= ======= ======= ======= =======
</TABLE>
-16-
<PAGE>
<TABLE>
<CAPTION>
BIORELEASE CORP
(A DEVELOPMENT STAGE ENTERPRISE)
PROFORMA CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended September 30, 1996
(Unaudited)
3 MONTHS SEPT 1996 Elimination Proforma Proforma
BCORP BTI TPI Adjustments Adjustments Results
<S> <C> <C> <C> <C> <C> <C>
Revenues ..................................... 0 12691 0 12691
Cost of Goods Sold ........................... 0 0 0 0
------- ------- ------- ------- ------- -------
Gross Profit 0 12691 0 0 0 12691
Operating expenses:
Cell culture operations.................... 0 0 0 0
Research and development................... 0 0 0 0
Purchased technology....................... 0 0 0 0
General and administrative ................ (34405) (9912) (42501) (86818)
Other...................................... 0
------- ------- ------- ------- ------- -------
Loss from operations ......................... (34405) 2779 (42501) 0 0 (74127)
Other income (costs) :
Interest, net ............................. 0 (981) 0 (981)
Accelerated lease cost..................... 0 0 0 0
Litigation costs........................... 0 0 0 0
Gain (Loss) on sale of assets.............. 0 0 0 0
Offering costs............................. 0 0 0 0
Option compensation........................ 0 0 0 0
Other income (settlements)................. 0 0 0 0
Other non operating costs.................. 0 0 0 0
Loss on disposition of invest-
ment in subsidiaries .................... 0 0 0 (3671958) (3671958)
Realized loss for decline in
value of investment........................ 0 0 0 0
------- ------- ------- ------- ------- -------
Loss before provision for (benefit)
from) income taxes and
cumulative effect of change
in accounting principle.................... (34405) 1798 (42501) 0 (3671958) (3758776)
(Provision) Credit for income
taxes...................................... 0 0 0 0
------- ------- ------- ------- ------- -------
Loss before cumulative effect of
change in accounting principle............. (34405) 1798 (42501) 0 (3671958) (3758776)
Comulative effect of change in
accounting principle....................... 0 0 0 0
------- ------- ------- ------- ------- -------
NET LOSS ..................................... (34405) 1798 (42501) 0 (3671958) (3758776)
======= ======= ======= ======= ======= =======
Weighted average shares ...................... 5117915
Loss per share ............................... (0.73215)
</TABLE>
-17-
<PAGE>
<TABLE>
<CAPTION>
BIORELEASE CORP
CONSOLIDATED ELIMINATION AND PROFORMA ADJUSTING ENTRIES
SEPTEMBER 30, 1996
ELIMINATION ENTRIES
<S> <C> <C> <C>
1 ELIMINATE INTERCOMPANY RECEIVABLE/ PAYABLE IN CONSOLIDATION
ACCOUNTS PAYABLE- AFFILIATE - BCORP 5000
ACCOUNTS RECEIVABLE - AFFILIATE - TPI 5000
2 ELIMINATE INVESTMENT IN SUBSIDIARIES
COMMON STOCK - TPI 1
APIC - BCORP 1
------- -------
5001 5001
======= =======
PROFORMA ADJUSTMENTS
3 TO RECLASSIFY BTI'S LIABILITY TO BCORP AS ADDITIONAL PAID IN CAPITAL
ACCOUNTS PAYABLE- AFFILIATE - BTI 3668534
ADDITIONAL PAID IN CAPITAL - BTI 3668534
4 TO RECLASSIFY BCORP'S RECEIVABLE FROM BTI TO INVESTMENTS IN SUBSIDIARIES
INVESTMENT IN SUBSIDIARIES - CORP 3668534
ACCOUNTS RECEIVABLE - AFFILIATE - B CORP 3668534
5 SPIN OUT BTI FROM CONSOLIDATED PROFORMA RESULTS
ACCOUNTS PAYABLE- BTI 65453
ACCRUED EXPENSES - BTI 25841
NOTES PAYABLE STOCKHOLDERS -BTI 58100
INCOME TAXES PAYABLE - BTI 1549
OTHER CURRENT LIABILITIES - BTI 4000
NOTES PAYABLE - STOCKHOLDERS - BTI 25475
COMMON STOCK - BTI 5047
ADDITIONAL PAID IN CAPITAL - BTI 5798207
DEVELOPMENT STAGE ACCUMULATED DEFICIT -BTI 5919391
ACCOUNTS RECEIVABLE - BTI 192
INVENTORIES - BTI 27679
INTANGIBLE ASSETS - BTI 36110
OTHER NONCURRENT ASSETS - BTI 300
6 TO WRITE-OFF BCORP'S RECEIVABLE IN SUBSIDIARY BTI
LOSS ON DISPOSITION OF INVESTMENT IN
SUBSIDIARY - BCORP 3668534
INVESTMENTS IN SUBSIDIARIES - B CORP 3668534
7 PROFORMA ISSUANCE OF 1,650,000 BCORP STOCK TO SHAREHOLDERS OF TPI
(BASED ON TPI RECEIVING 4 SHARES OF BIO FOR EACH SHARE OF TPI)
(750BTI + 750 NEW BTI =1500sh x 2750 x4)
ADDITIONAL PAID IN CAPITAL - BCORP 165000
COMMON STOCK - BCORP 165000
8 WRITE OFF BCORP'S INVESTMENT IN BTI
LOSS ON DISPOSITION OF INVESTMENT IN
SUBSIDIARY -BCORP 4582
INVESTMENTS, NET - BCORP 4582
9 REFLECT THE REVERSE SPLIT OF BCORP STOCK ON A ONE FOR FOUR BASIS
COMMON STOCK - BCORP 194788
ADDITIONAL PAID IN CAPITAL - BCORP 194788
ISSUED BCORP SHARES 99217
LESS TREASURY STOCK (4500)
BCORP SHARES ISSUED TO BTI 165000
------
TOTAL PROFORMA SHARES 259717
SPLIT TO EQUAL 64929
------
ADJUST 194788
====== -------- --------
10016576 10016576
======== ========
</TABLE>
-18-
