NEW YORK, NY, – Enzo Biochem, Inc. (NYSE:ENZ) today reported results for the fiscal second quarter and six months ended January 31, 2013.

• Jury declares Life Technologies infringed Enzo Biochem patents and awards Enzo $48.6 million

• Company Reports Progress on Technology Platforms; Anticipates New Lab-Developed Tests Aimed at Women’s Health Market;

• Superstorm Sandy Aftermath Interrupts Clinical Labs Top-Line Growth.

“Although Hurricane Sandy significantly impacted our Clinical Lab business during the second quarter, our restructuring efforts to streamline operations and deliver improved financial results remain firmly on track,” said Barry Weiner, President. “The storm delayed patient visits to doctors, resulting in lower specimen collection and delayed new product approvals during the quarter, which we estimate reduced revenue at Clinical Labs by $2.2 million. We expect Clinical Labs to return to the pattern of growth it had previously demonstrated during the upcoming quarters. In addition, we anticipate many of our newly introduced diagnostic tests should enhance results in the coming months.

“Our investment in protecting our intellectual property, which involved higher legal expenses during the second quarter, resulted in a favorable $48.6 million verdict that we believe positions the Company well, in advance of litigation surrounding even more significant patent infringement. Currently, the Company has numerous active litigations against many of the leading life sciences and diagnostics companies, which we believe have infringed upon our intellectual property through sales of products that have collectively generated billions of dollars of revenue. The majority of these recent cases are currently being handled on a contingency basis by one of the leading law firms in this area. Meanwhile, while some of the markets for our life sciences products remain challenging, we continue to tightly manage expenses to generate improved bottom-line results.”

Second Quarter Results

Revenues for the second fiscal quarter were $22.2 million, compared with $25.0 million a year ago. Operating expenses declined $0.5 million to $28.2 million, reflecting a reduction in selling, general and administrative and research and development expenses, partially offset by increased legal expenses in connection with the Life Technologies litigation. The net loss for the period was $(5.7) million or $(0.14) per diluted share, compared with $(4.2) million or $(0.11) per diluted share in the same period a year ago. EBITDA loss was $(4.7) million as compared to $(3.0) million in the year ago period.

As of January 31, 2013, cash and cash equivalents totaled $10.0 million. Working capital amounted to $13.7 million. Net cash used in operating activities for the six months ended January 31, 2013 was $4.6 million, up from $3.6 million the year ago period.

“This has been an unexpectedly challenging quarter,” said Mr. Weiner. “It included a devastating hurricane affecting Clinical Labs and reduced government expenditures, including a tightened NIH budget that has affected Life Sciences, while the trend continues towards reduced reimbursements both from government as well as commercial payors. On the plus side, we anticipate the introduction of new esoteric, higher margin laboratory developed tests that should drive revenue growth in Clinical Labs. Clinical Labs will shortly be adding several key assays to its expansive testing menu directed at Women’s Health. Hurricane Sandy not only adversely affected our lab service volume, but it also led to delays in final approval by regulatory authorities of several of these new key tests that we now expect to release.

“Additionally, we remain optimistic about the commercialization potential for products derived from our proprietary nucleic acid target amplification platform, AmpiProbeTM, as we have completed a number of key steps in the manufacturing and product development processes to move this technology towards monetization. I am also pleased to report that we continue to actively recruit and treat patients for the clinical trial of OptiquelTM, our study drug for the treatment of autoimmune uveitis, which is ongoing at the National Eye Institute in Bethesda, MD.

“Our investment in protecting our intellectual property, which resulted in higher legal expenses during the second quarter, resulted in a favorable $48.6 million verdict plus interest to be determined by the Court.

“Our goal remains to utilize Enzo’s considerable intellectual property and know-how to fashion Enzo into an industry-leading integrated life sciences/clinical lab company with cutting edge, innovative products that, in keeping with today’s healthcare cost concerns, are highly effective and provide physicians as well as investigators and product development technicians with advanced tools to better provide for the needs of patients.”

Segment Quarterly Results:

Clinical Labs was affected during the early part of the quarter as a result of the storm, although there has since been a pickup in activity. Revenues were $13.2 million, compared with $14.1 million a year ago, a 6% decline, mostly due to the storm’s impact. Gross profit decreased $1.5 million, to $3.9 million due to the decreased revenues and higher lab costs. Operating expenses, including a 5% reduction in the segment’s SG&A, declined $0.2 million to $6.3 million, from $6.5 million, with the result that the operating loss amounted to $2.4 million, compared with $1.1 million year over year.

Life Sciences’ continued to benefit from its transformation to a more centralized operating and marketing segment, narrower and more profitable product lines, reduced distributorships and lower payroll expenses from personnel staff reduction. However, lower funding for life science activities amidst macroeconomic concerns is having an industry-wide effect, particularly on product sales. Excluding royalty income, which was $1.0 million, product revenues were $7.9 million as compared to $9.5 million in the prior period. Total gross margin was $4.7 million, and as a percentage of sales was 53%, as compared with 57% a year ago. Total operating expenses declined 13%, to $4.8 million, reflecting cost-cutting, and the operating loss was $57,000, compared to operating income of $0.7 million a year ago. Life Sciences’ EBITDA was $0.9 million, a decrease of $.2 million from $1.1 million in the year ago period.

Year-to–Date Summary

For the six months ended January 31, 2013, revenue declined by $2.9 million to $47.8 million, from $50.7 million in the first half of 2012. Clinical Labs’ revenues increased 1%, negatively affected by approximately $2.9 million from the storm while Life Sciences’ product revenues declined 15% and royalty and licensing revenues declined $0.1 million. Gross margins were $20.4 million, $3 million less than a year ago. Operating expenses, including R&D, SG&A, legal and provision for uncollectible accounts decreased by 4%, largely due to reduced SG&A and R&D expenses. Net loss was $(9.4) million, compared with $(8.7) million in the year ago period.