Carrington Laboratories Reports 2003 Third Quarter Results

Third Quarter Revenue Grows 48% over Prior Year
70% increase in Revenue for the first nine months over Prior Year
Significant Growth in Raw Material and Specialty Manufacturing Sales
DelSite reports Promising Results from Studies

IRVING, Texas, Nov. 13 /PRNewswire-FirstCall/ -- Carrington Laboratories, Inc. (Nasdaq: CARN - News) announced today that third quarter revenue for the company rose nearly 48 percent to $7.5 million from $5.1 million a year earlier. Carrington reported net loss for the third quarter of $466,000, or 5 cents per share, compared with a loss of $541,000 or 5 cents per share a year earlier. Excluding its DelSite subsidiary, Carrington reported net income for the quarter ended September 30, 2003 of $157,000, as compared to $45,000 for the same quarter the prior year. Revenue for the first nine months of 2003 was up 70% over the same period in 2002, rising to $22.4 million this year from $13.2 million in 2002. Carrington reported a net loss for the nine months of $426,000, or 4 cents per share, compared with a loss of $2.4 million, or 25 cents per share for the same period last year. Excluding DelSite, Carrington reported net income for the 9 months ended September 30, 2003 of $1.5 million compared to a loss of $1.2 million for the same period last year.

Raw material sales for the third quarter increased over a million dollars to $3.2 million compared to $2.2 million a year earlier. Specialty manufacturing revenues increased by 315% to approximately $2 million, due primarily to business acquired late last year. Carrington's wound care and related product sales, reported as part of the Medical Services segment, remained flat at $1.5 million for the quarter.

Year-to-date raw material sales for the nine months rose to $9.0 million compared to $4.5 million a year earlier. Specialty manufacturing revenue increased by 313% to $6.5 million compared to $1.6 million last year due to business acquired and growth from domestic customers. Carrington's wound care sales dipped slightly to $4.7 million this year from $4.8 million for the nine months last year. "Our strategy to aggressively grow the top line, fully fund DelSite, have a positive cash flow, and be at or near break even for the year remains on target," said Carlton Turner, president and CEO of Carrington Laboratories, Inc.

DelSite Update

Earlier in the quarter DelSite reported results obtained from an animal study of its GelSite(TM) technology which demonstrated that the polymer undergoes resorption from the site of injection. In this study, the GelSite(TM) polymer was administered as a liquid that subsequently gels in the animal. The resorption study, sponsored by DelSite Biotechnologies, demonstrated that the polymer deposited at the injection site was eliminated.

In addition, the research team, using a GelSite formulation, successfully obtained data which demonstrated a seven-day delivery of a commercial, bioactive protein. "The results meet two key milestones in the development of GelSite technology as a platform for the delivery of injectable proteins and peptides," added Turner.

About Carrington Laboratories, Inc.

Carrington Laboratories, Inc., is an ISO 9001-certified, research-based biopharmaceutical and consumer products company currently utilizing naturally occurring complex carbohydrates to manufacture and market products for mucositis, radiation dermatitis, wound and oral care as well as to manufacture and market the nutraceutical raw materials Manapol® and Hydrapol(TM). Carrington Laboratories also manufactures and markets consumer products sold under its AloeCeuticals® brand and manufactures quality products for other companies. Manufacturing operations comply with cGMP standards. The company's DelSite subsidiary is developing its proprietary GelSite(TM) technology designed to provide controlled release of peptide and protein-based drugs. More than 120 patents in 26 countries protect Carrington Laboratories' technology. Select products are honored with the internationally coveted CE mark, recognized by more than 20 countries around the world. For more information, visit .

Certain statements in this release concerning Carrington Laboratories, Inc. may be forward-looking. Actual events will be dependent upon a number of factors and risks including, but not limited to subsequent changes in plans by management, delays or problems in formulation, manufacturing, distribution, production and/or launch of new finished products, supply of raw materials, separation and formulation of GelSite production, changes in the regulatory process, changes in market trends, and a number of other factors and risks described from time to time in the Company's filings with the Securities and Exchange Commission, including Form 10-Q filed August 14, 2003.

Carrington, Manapol, AloeCeuticals, Hydrapol, GelSite and Acemannan Hydrogel are trademarks, registered trademarks or service marks of Carrington Laboratories, Inc., in the United States and/or other countries. All other trademarks or service marks contained herein are the properties of their respective owners.

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