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ARIUS announces second quarter fiscal 2008 financial results
Date:7/11/2008

riods was primarily the result of the recognition of product and research contract revenue from the Takeda collaboration and the recognition of licensing fee revenue for an extension fee payment under the agreement with PDL Biopharma Inc.

For the six-month period ended May 31, 2008, the Company's interest income decreased to $176,512 compared to $381,407 for the same period in fiscal 2007. For the three-month period ended May 31, 2008, the Company's interest income decreased to $69,720 compared to $181,484 for the same period in fiscal 2007. The decrease for both periods was primarily the result of lower average cash and investment balances.

For the six-month period ended May 31, 2008, the Company's research and development costs increased to $5,933,367 compared to $4,059,931 for the same period in fiscal 2007. For the three-month period ended May 31, 2008, the Company's research and development costs increased to $3,337,461 compared to $2,102,603 for the same period in fiscal 2007. The increases were primarily the result of an increase in staffing levels related to an overall increase in activity as the Company is preparing three products for the clinic, accompanied by increased patent and licensing activity and an increase in stock option remuneration expense.

For the six-month period ended May 31, 2008, the Company's general and administrative expenses increased to $2,170,683 compared to $1,437,009 for the same period in fiscal 2007. For the three-month period ended May 31, 2008, the Company's general and administrative expenses increased to $1,149,402 compared to $762,673 for the same period in fiscal 2007. The increases were primarily the result of an increase in staffing levels, consulting fees, legal expenses and stock option remuneration expense.

As at May 31, 2008, ARIUS' cash and cash equivalents, and net working capital position were $8,543,124 and $5,807,638, respectively, compared with November 30, 2007 cash and cash equivale
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SOURCE ARIUS Research Inc.
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