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ARIUS Announces Third Quarter Fiscal 2007 Financial Results
Date:10/12/2007

and administrative expenses, and lower interest income, offset partially by lower interest expense and higher revenues.

Revenue decreased to $845,974 for the nine-month period ended August 31, 2007, compared to $2,668,010 for the nine-month period ended August 31, 2006. The decrease during the nine-month period ended August 31, 2007, was primarily the result of the recognition of licensing fee revenue from Genentech in the fiscal 2006 period, partially offset by the recognition of revenue from the Takeda collaboration and the recognition of unearned revenue from PDL BioPharma Inc. ("PDL"). For the three-month period ended August 31, 2007, the Company's revenue increased to $716,128 compared to $226,710 for the three-month period ended August 31, 2006. The increase in the three month period relates to the recognition of revenue from the Takeda collaboration and the recognition of unearned revenue from PDL in the fiscal 2007 period.

Interest income increased to $537,128 for the nine-month period ended August 31, 2007, compared to $396,966 for the same period in fiscal 2006. For the three-month period ended August 31, 2007, the Company's interest income decreased to $155,721 compared to $275,529 for the same period in fiscal 2006. The increase for the nine-month period was primarily the result of higher average cash balances due to the completion of a private placement in February and March 2006, payments from the Genentech licensing agreement and the Takeda research collaboration and higher interest rates. The decrease for the three-month period was primarily the result of lower average cash and investment balances.

Research and development costs amounted to $6,461,991 for the nine-month period ended August 31, 2007, compared to $3,175,663 for the same period in fiscal 2006. For the three-month period ended August 31, 2007, the Company's research and development costs amounted to $2,402,060 compared to $1,303,088 for the same period in fiscal 2006. T
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