August 19, 1998
						
H. Joseph Reiser, Ph.D.
6 Thackery Lane
Mendham, NJ   07945

Dear Dr. Reiser:

CYTOGEN Corporation is pleased to offer you the position of 
President and Chief Executive Officer.

This employment agreement will remain in force for an 18-
month period following your date of hire.  It is renewable 
for subsequent 12 month periods, with a 90-day written 
notice period preceding each renewal date for the Company to 
specify its intentions regarding the renewal of the 
agreement.  

In this position, your annual salary will be  $275,000, 
effective on your date of hire, August 24, 1998.   You will 
be eligible to participate in the CYTOGEN bonus plan as 
approved by the Board of Directors for each performance 
year.  Your targeted bonus opportunity for 1998 will be 
$50,000, depending on the level of achievement of 
performance objectives. The target bonus opportunity for 
subsequent years will be approximately 35% of base salary, 
also depending on the achievement of performance objectives.

You will also be granted a sign-on bonus in the amount of 
$50,000, less taxes, payable upon commencement of 
employment.  

As discussed, you have been granted options to purchase 
2,250,000 shares of CYTOGEN Common Stock, conditioned on 
your commencement of employment. The option vesting periods 
will begin on the following schedule of milestones to be 
achieved, with each tranche to vest in equal annual 
increments over a three year period from the date of the 
achievement of the related milestones:

- 900,000 shares upon hire

- 450,000 shares upon completion of a CYTOGEN Business 
  Plan, to the satisfaction of the Board of Directors

- 450,000 shares upon the completion of securing adequate 
  financing for CYTOGEN and staffing the senior executive 
  positions to the satisfaction of the Board of Directors, 
  each in accordance with the Business Plan.

- 450,000 shares upon the achievement of CYTOGEN's 
  profitability, which is defined as the first calendar 
  quarter where the Company shows an "operating profit" as 
  reported in the CYTOGEN's Exchange Act Reports.


<PAGE>
Dr. H. Reiser
August 19, 1998
Page 2

The exercise price for these stock options will be the 
market price (the average of the low and high prices) of 
CYTOGEN Corporation stock on August 18, 1998,  $1.0937.  

A copy of your Option Agreement, evidencing these and other 
terms of your option grants, will be provided to you during 
your first week of employment.

In the event your employment is terminated by the Company 
for reasons other than Cause, you shall receive twelve 
months of base pay and group medical and dental insurance. 
You will also receive base pay, benefits and bonus for any 
remaining months (if applicable) of the employment 
agreement.  The base pay shall be payable, at the sole 
discretion of the Company, in monthly or bi-weekly 
installments, or in a lump sum. You will also be entitled to 
receive, on a pro rata basis, such portion of a short term 
incentive award as earned based on performance, if any, 
through the date of termination.  The final decision 
regarding the amount of such bonus payment will be 
determined by the Board of Directors.

"Cause" shall mean material refusal or failure to perform 
and discharge duties and responsibilities to the Company in 
accordance with the terms of your employment, or willful 
action or inaction that is materially inconsistent with the 
terms of your employment; or material breach of your 
fiduciary duties as an officer of the Company or any 
subsidiary or affiliate of the Company; or conviction of a 
felony; or conviction of any other crime involving personal 
dishonestly or moral turpitude.

As a CYTOGEN employee, you are entitled to comprehensive 
medical, dental, life, AD&D, long-term disability, and 
travel and accident coverage.  Dependent medical and dental 
coverage is also available.  Employees contribute 20% 
towards the cost of the premiums for medical and dental 
benefits.  This amount is deducted through payroll on a pre-
tax basis.  The insurance benefit package becomes effective 
on the first day of your date of employment. Your vacation 
benefit will be 4 weeks per year, in accordance with the 
accrual schedule of the Company. You will also be eligible 
to participate in the Cytogen Retirement Investment Savings 
Plan.

The Company will pay you a monthly car allowance of $750.00. 
Other benefits may apply as defined by the Company executive 
benefits program.

These benefits, as with all benefits programs, are subject 
to change at the discretion of the Board of Directors.

You will also have the option to relocate, in accordance 
with the CYTOGEN Corporation Relocation Policy, within two 
years from your date of hire.


<PAGE>
Dr. H. Reiser
August 19, 1998
Page 3

Enclosed you will find a variety of new hire documents for 
you to review and complete prior to your employment date.  
Federal law requires the completion of the enclosed I-9 form 
and our examination of original documentation from either 
list A or from both lists B and C.  Please bring this 
necessary supporting documentation, as well as the new 
hire paperwork, with you when you commence employment.

You will be required to schedule a pre-employment drug 
screen.  Please contact Jill Searing, Director, Human 
Resources at 609-987-8260 to set up a mutually agreeable 
time for your appointment

This offer of employment is contingent on the results of the 
drug screening test and verification of your references and 
academic credentials.

Please indicate your acceptance of this offer letter by 
signing below and returning the original to me.  

We look forward to your joining CYTOGEN and leading the 
organization forward.

                                     Sincerely,


                                     /s/ James A. Grigsby
                                     James A. Grigsby
                                     Chairman


cc:	Dr. Bagalay
    Dr. Brenner
    Mr. Crane
    Mr. Hendrickson
    Ms. Searing


ACCEPTED AND AGREED TO THIS 20th DAY OF August, 1998
                            ----        ------

BY:  /s/ H Joseph Reiser, Ph.D.
     -----------------------------------------
    	H. Joseph Reiser, Ph.D.