[DUSA GRAPHIC OMITTED]

INNOVATION IN PHOTODYNAMIC THERAPY



DUSA PHARMACEUTICALS, INC.

FOR RELEASE AT 7:00 A.M. NOVEMBER 12, 2002





                   DUSA PHARMACEUTICALS REPORTS THIRD QUARTER

             CORPORATE HIGHLIGHTS AND FINANCIAL RESULTS, INCLUDING:



                 DUSA COMPLETES RE-ACQUISITION OF LEVULAN(R) PDT

                  DERMATOLOGY RIGHTS FROM SCHERING AG, GERMANY;

               REFOCUSES DERMATOLOGY EFFORTS ON EXPANDING LABELING



             ACCELERATION OF PREVIOUS SCHERING AG PAYMENTS LEADS TO

             NON-RECURRING $15.8 MILLION PROFIT DURING THIRD QUARTER



WILMINGTON, MA. NOVEMBER 12, 2002 - DUSA Pharmaceuticals, Inc. (NASDAQ NMS:

DUSA) reported today its corporate highlights and financial results for the

third quarter ended September 30, 2002. The quarter's major event was the

completion of the re-acquisition of Levulan PDT dermatology rights from Schering

AG, Germany, effective September 1, 2002. Going forward, DUSA will be

responsible for all dermatology marketing and development efforts. As a result,

our intention is to increase product sales over time by understanding and

meeting the needs of dermatologists, and educating them about the benefits of

our therapy. In addition, our clinical work in dermatology has been refocused to

concentrate on studies which, if successful, would support Broad Area Actinic

Keratoses (BAAK) as an expansion of our approved product labeling for AK. We are

also supporting efforts to improve reimbursement for our approved product, and

are seeking a partner for our Barrett's esophagus dysplasia indication.



Over the last few months, the Company has also reduced its work force by

approximately 20% through a combination of layoffs and attrition, and intends to

minimize expenditures that are not directly related to our core objectives

during 2003.



The termination of the Marketing, Development and Supply Agreement resulted in a

significant one-time profit for DUSA of over $15.8 million for the quarter, due

to the net effect of the acceleration of the previously received, but

unamortized, contract payments and related charges.



CORPORATE HIGHLIGHTS:



LEVULAN PDT IN DERMATOLOGY

As previously announced, on June 7, 2002, DUSA received a Notice of Termination

from Schering AG related to the Marketing, Development and Supply Agreement

between the parties. Although the agreement provided for a 12-month transition,

both parties agreed that it would be mutually advantageous to advance the actual

termination date. This required DUSA to implement management of all the

FDA-regulated functions that had previously been the responsibility of Schering

AG, including marketing, medical







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education, drug distribution, customer service, drug safety reporting, and

medical information. Effecting this transfer took a major effort during the

quarter, and we were pleased to be able to complete the termination effective

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