NEWS RELEASE


SYNERGEN, INC.
1885 33rd Street
Contact: Susan Eustes
Boulder, Colorado  80301
(303) 938-6242
(303) 938-6200


FOR IMMEDIATE RELEASE


            SYNERGEN REDUCES WORKFORCE BY 60 PERCENT
                                
                                
BOULDER, CO -- August 1, 1994 -- Synergen, Inc. (Nasdaq:SYGN) 
announced that, effective today, 60 percent of its workforce is 
terminated.

The reduction in staff comes two weeks after the Company
announced that it stopped its follow-up Phase III clinical
trial of ANTRILtm (anakinra) for severe sepsis because an
interim analysis of the data showed a lack of efficacy of
the product for that indication.  The reduction in staff 
and the elimination of some operations and development
activities are being taken to conserve cash and permit
continued development of Synergen's priority projects.
Synergen's LakeCentre manufacturing plant in Boulder is 
being closed.  The Company will also evaluate strategic 
alternatives for its operations.

Synergen is terminating approximately 375 positions, 340 of
which are from Boulder. The remaining 35 positions being
terminated are located in Europe and Japan.  Synergen is 
closing its Japan office and will maintain a clinical group 
in Europe to oversee the conduct of a Phase II clinical 
trial of the Company's interleukin-1 receptor antagonist 
(IL-1ra) for rheumatoid arthritis.

With a staff of about 250, the Company will retain its
capabilities in discovery research, clinical development
through the Phase II stage, and process development and
manufacturing.  In addition to the Phase II clinical trial
of IL-1ra for rheumatoid arthritis, the Company is currently
conducting a Phase I clinical trial of tumor necrosis factor
binding protein (TNFbp) for inflammatory diseases and,
through a neuroscience joint venture with Syntex (U.S.A.)
Inc., a Phase II/III clinical trial of ciliary neurotrophic
factor (CNTF) for amyotrophic lateral sclerosis (ALS or Lou
Gehrig's disease).  Synergen also will continue preclinical
development of glial derived neurotrophic factor (GDNF) for
Parkinson's disease.

Gregory B. Abbott, president and chief executive officer,
said, "We are following through on our commitment to
restructure Synergen's operations.  We regret deeply the
necessity of these actions; however, it was imperative that
we reduce our staff and operations to allow the Company
adequate resources to continue to assess the clinical
prospects of our other lead products and move earlier stage
discovery research farther along in development."

Synergen ended its second quarter on June 30, 1994 with
approximately $135 million in cash.  The Company expects 
to substantially reduce its expenditures after recognition 
of certain restructuring charges reflecting severance packages 
and reductions in operations and asset valuations.

Synergen is a biopharmaceutical Company in Boulder, Colorado
engaged in the discovery, development and production of
protein-based pharmaceuticals.  The Company's research is 
targeted at products for inflammatory and neurological diseases.