Harbert Discovery Fund Releases Detailed Investor Presentation Highlighting Case for Change at Enzo Biochem

Harbert Discovery Fund, LP and Harbert Discovery Co-Investment Fund I, LP (collectively “HDF”), the beneficial owner of more than 11.8% of the outstanding shares of Enzo Biochem, Inc. (NYSE: ENZ) (“Enzo” or the “Company”), today released a detailed investor presentation on Enzo. The presentation outlines the Company’s history of value destruction, persistent underperformance, and corporate governance issues and details HDF’s Nominees’ strategic plan to realize value at Enzo.

The complete investor presentation is available at https://cureenzo.com/.

In the presentation, HDF explains why change is needed at the Company, including:

• Enzo’s history of value destruction which has been enhanced by a pattern of overpromising and underdelivering, resulting in total shareholder returns of -49% over a 10-year period.
• Enzo’s worst-in-class corporate governance and executive compensation which have continued to disillusion shareholders. Enzo has reported operating losses every year since 2004, yet the Board has approved paying Chairman / CEO Elazar Rabbani and his brother-in-law Barry Weiner over $34 million cumulatively since 2004, including a significant cash bonus every year.
• The opportunity to unlock potential value at Enzo through a series of strategic decisions, including adding two new independent directors to the Board and executing HDF’s initiatives to create shareholder value. Highlights of the comprehensive plan by HDF’s Nominees include:
  • Address Excess Compensation and Cost Structures: Reassess management compensation, bloated cost structures and planning and budgeting processes to ensure capital is being used in the most efficient manner.
  • Deliver on Potential Partnership Opportunities: Apply a growth mindset to Enzo’s product portfolio to determine where partnerships can help return the Company to growth.
  • Revitalize Corporate Strategy: Refocus on Enzo’s inherent strengths of its lab’s location in a high-density population market and strong customer relationships to position the Company for success.
  • Deliver Profitable Growth and Excess Cash to Shareholders: Realize that through systematically targeting the cost structure, incentive plan, and growth opportunities Enzo can achieve profitable growth, driving substantial long-term value for all shareholders.

VOTE ON THE BLUE PROXY CARD TO CURE ENZO TODAY

Important Information about Participants in a Proxy Solicitation:

Harbert Discovery Fund, LP (“Harbert Discovery”), Harbert Discovery Fund GP, LLC (“Harbert Discovery GP”), Harbert Discovery Co-Investment Fund I, LP (“Harbert Discovery Co-Investment” and together with Harbert Discovery, the “Discovery Funds”), Harbert Discovery Co-Investment Fund I GP, LLC (“Harbert Discovery Co-Investment GP”), Harbert Fund Advisors, Inc. (“HFA”), Harbert Management Corporation (“HMC”), Jack Bryant (“Mr. Bryant”), Raymond Harbert (“Mr. Harbert”) and Kenan Lucas (“Mr. Lucas” and together with Harbert Discovery, Harbert Discovery GP, Harbert Discovery Co-Investment, Harbert Discovery Co-Investment GP, HFA, HMC and Messrs. Bryant and Harbert, the “Harbert Discovery Parties”) (collectively, the “Participants”) have filed with the Securities and Exchange Commission (the “SEC”) a definitive proxy statement and accompanying form of proxy to be used in connection with the solicitation of proxies from the shareholders of Enzo Biochem, Inc. (the “Company”) in connection with the annual meeting of shareholders of the Company (the “Annual Meeting”). All shareholders of the Company are advised to read the definitive proxy statement and other documents related to the solicitation of proxies by the Participants in respect of the Annual Meeting, as they contain important information, including additional information related to the Participants, their nominees for election to the board of directors of the Company and the Annual Meeting. The definitive proxy statement and an accompanying proxy card will be furnished to some or all of the Company’s shareholders and are, along with other relevant documents, available at no charge on the SEC website at http://www.sec.gov/ and are available upon request from the Participants’ proxy solicitor, Okapi Partners, by calling (888) 758-6707 (banks and brokers call collect (212) 297-0720).

Additional information about the Participants can be found on the Definitive Proxy Statement filed by the Participants on December 6, 2019.

About Harbert Discovery Fund (HDF)
HDF invests in a concentrated portfolio of publicly traded small capitalization companies in the US and Canada. We perform significant due diligence on each portfolio company prior to investing. In addition to researching all publicly available information and meeting with management, our diligence includes substantial primary research with industry experts, consultants, bankers, customers and competitors. We often spend months or years researching ideas before making an investment decision and we only invest in companies that we believe are significantly undervalued, and where there is the potential for change to enhance or accelerate value creation. In an effort to unlock this potential value, we seek to work directly with the boards and management teams of our portfolio companies privately and collaboratively, engaging with them on a range of factors including governance, board composition, corporate strategy, capital allocation, strategic alternatives and operations. We have effected positive, fundamental changes at our current and past investments through this behind-the-scenes, constructive approach. HDF currently has board representation at three of our portfolio companies. In each case, changes to the board were agreed upon privately and it is our strong preference in every investment to avoid the unnecessary distractions and costs of a public proxy campaign.

About Harbert Management Corporation (HMC)
HMC is an alternative asset management firm with approximately $6.7 billion in regulatory assets under management as of December 1, 2019. HMC currently sponsors nine distinct investment strategies with dedicated investment teams. Additional information about HMC can be found at www.harbert.net.

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Investor
Okapi Partners LLC
Bruce Goldfarb / Chuck Garske / Jason Alexander, 212-297-0720 [email protected]

Media
Sloane & Company
Dan Zacchei / Sarah Braunstein, 212-486-9500
[email protected] / [email protected]