EXHIBIT 99.1


FOR IMMEDIATE RELEASE

CONTACTS

BMC Communications/Trout Group                 Enchira Biotechnology Corporation
Brad Miles (media), ext. 17                    Paul G. Brown, III
Jonathan Fassberg (investors), ext. 16         Chief Financial Officer
(212) 477-9007                                 (281) 364-6140


FOR IMMEDIATE RELEASE

         ENCHIRA GETS CONVERSION COMMITMENTS FROM SERIES B STOCKHOLDERS

                MOST OUTSTANDING SHARES OF SERIES B TO BE RETIRED

THE WOODLANDS, TX - OCTOBER 10, 2001 - Enchira Biotechnology Corporation
(NASDAQ: ENBC) announced today that it has received commitments from the holders
of 70% of its outstanding shares of Series B Preferred Stock to convert their
shares of Series B Preferred into shares of the Company's common stock at the
current Series B Preferred conversion rate. In exchange for this conversion, the
Company has committed to pay these Series B Preferred holders in cash all
accrued but undeclared and unpaid dividends on the Series B Preferred to date.

As a result, the Company will retire 215,000 shares of its Series B Preferred
Stock. Only 92,700 shares of its Series B Preferred will remain outstanding
following the completion of this conversion. The Company has committed to pay in
cash an aggregate of $2,510,722 in accrued but undeclared and unpaid dividends
and to issue 642,394 shares of its common stock.

Dr. Peter Policastro, President and Chief Executive Officer of Enchira stated,
"We are very pleased with the commitments we've received from the holders of our
Series B Preferred Stock. These conversions remove a significant impediment to
the Company's ability to raise funds in the future, and allow us to pursue
several different options in order to achieve our objective of developing the
proprietary kinase inhibitor-based anti-cancer drug candidates in our pipeline.
As a result of the conversions, the Company has in excess of $6.3 million
available for product development and working capital. This action, together
with our recent news that Nasdaq has closed its delisting action against us, and
the buy-back of 1,080,000 shares of our common stock at a discounted rate,
provide us with an excellent opportunity to move forward toward our goals."

Enchira Biotechnology Corporation is applying its proprietary Drug Candidate
Optimization Platform(TM) to create new therapeutic proteins. The Company is



focusing its efforts on protein kinases, which are involved in various cellular
processes. Irregularities of these proteins have been implicated in many Human
diseases, including cancer and other proliferative disorders. Of particular
interest are certain protein tyrosine kinases (PTKs) and related receptor
tyrosine kinases (RTKs) that regulate cell growth and proliferation and that
have been implicated in the most malignant forms of cancer. Enchira is
collaborating with researchers at the University of Texas M. D. Anderson Cancer
Center and other institutions to create molecules that interfere with RTK
activity. The Company has a number of molecules in its development pipeline.
Additional information is available at the Company's website: WWW.ENCHIRA.COM.

THIS DOCUMENT CONTAINS FORWARD-LOOKING STATEMENTS REGARDING THE COMPANY'S
ABILITY TO RAISE ADDITIONAL CAPITAL AND DEVELOP ITS PRODUCT CANDIDATES, THAT ARE
SUBJECT TO CERTAIN RISKS, UNCERTAINTIES AND ASSUMPTIONS, INCLUDING BUT NOT
LIMITED TO, THE OUTCOME OF THE PENDING ARBITRATION WITH MAXYGEN, THE ABILITY TO
RAISE ADDITIONAL FUNDS ON ACCEPTABLE TERMS, THE TECHNICAL UNCERTAINTY AND RISKS
ASSOCIATED WITH COMMERCIALIZATION OF THE COMPANY'S TECHNOLOGY, THE MARKET
ACCEPTANCE OF THE COMPANY'S TECHNOLOGY, THE COMPANY'S DEPENDENCE ON
COLLABORATION PARTNERS, COMPETITION, AND THE ABILITY TO ENFORCE AND DEFEND THE
COMPANY'S PATENTS AND PROPRIETARY TECHNOLOGIES. SHOULD ONE OR MORE OF SUCH RISKS
AND UNCERTAINTIES MATERIALIZE, OR SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT,
ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE INDICATED IN SUCH FORWARD-LOOKING
STATEMENTS. FOR A DISCUSSION OF SUCH RISKS AND ASSUMPTIONS, SEE "RISK FACTORS"
INCLUDED IN THE COMPANY'S SEC FILINGS.


SOURCE: Enchira Biotechnology Corporation

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