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Contact: Jason Rubin
(610) 344-0200

FOR IMMEDIATE RELEASE

                      Cephalon and Schering-Plough Conclude
                   Alzheimer's Disease Research Collaboration

         West Chester, PA -- January 16, 1997 -- Cephalon, Inc. (NASDAQ: CEPH)
announced today that Schering-Plough Corporation (NYSE: SGP) will discontinue
its funding of the companies' research collaboration to develop compounds for
the treatment of Alzheimer's disease.

         The collaboration has been focused on the development of protease
inhibitors that prevent the secretion of beta-amyloid peptide, a major component
of the neuritic plaques that cause neuronal death in patients with Alzheimer's
disease. Schering-Plough has been Cephalon's collaborator in this area since
1991.

         "Protease inhibitors that significantly reduce beta-amyloid secretion
represent important therapeutic leads directed at the underlying pathogenesis of
Alzheimer's disease, " said Frank Baldino, Jr., Ph.D., Cephalon's president and
chief executive officer. "We have made substantial progress based upon this
approach, and are grateful to Schering-Plough for its long-standing financial
support for this program. We remain committed to pursuing this therapeutic
approach to treating Alzheimer's disease."

         Other provisions of the companies' agreement continue, including
Cephalon's non-exclusive right to use the technology developed in the program
and the right to receive royalties on net sales of any products licensed
exclusively to Schering-Plough under the agreement.

         Approximately 4 million people in the United States suffer from
Alzheimer's disease today. The age-dependent nature of the disorder indicates
that an ever-increasing percentage of the population will be affected by
Alzheimer's disease as the population ages.

         Cephalon, Inc., headquartered in West Chester, PA, is an international
biopharmaceutical company that discovers, develops and markets products to treat
neurological disorders. The company is developing products for the treatment of
ALS, narcolepsy, peripheral neuropathies, Alzheimer's disease, head and spinal
injury, and stroke, and currently copromotes two products in the United States
for the treatment of neurological conditions.

         This news release may contain forward-looking statements that involve
risks and uncertainties. A full discussion of Cephalon's operations and
financial condition, including factors that may affect the company's business
and future prospects, is contained in documents the company files with the SEC,
such as form 10-Q and 10-K reports. These documents identify important factors
that could cause the company's actual performance to differ from current
expectations.