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Cardium Reports on Third Quarter 2009 Financial Results and Recent Developments
Date:11/10/2009

and regenerate tissue in certain medically-compromised patient populations. Osteorate will be based on a reformulation of the Excellarate wound healing product candidate. The Gene Activated Matrix technology allows for a broad spectrum of formulations which would include, but not be limited to, collagen, demineralized bone matrices, allograft and synthetic graft materials.

In addition, Cardium recently announced the results of preclinical research published in the scientific journal, Gene Therapy, demonstrating the potential benefits of its Gene Activated Matrix technology for accelerating and enhancing periodontal tissue repair and oral implant osseointegration. This research further supports Cardium's decision to expand the Company's focus of its regenerative medicine technologies to include the emerging new high growth market segment of orthobiologics.

Financial Report

For the third quarter ended September 30, 2009, the Company reported net income for the current period of $4.9 million or $0.10 per share, compared to a net loss of $6.2 million, or $0.13 per share for third quarter 2008. During the quarter, the Company recorded a gain on the sale of InnerCool Therapies in the amount of $6.4 million. The third quarter 2009 financial results also includes a $2.0 million favorable adjustment to income for the non-cash change in fair market value of certain common stock warrants recorded as derivative liabilities, required as a result of the adoption of Emerging Issues Task Force EITF 07-05, recorded in "Change in Fair Value of Derivative Liabilities." Grant revenue for the third quarter 2009 was $236,000. There was no revenue from the grant recorded during the third quarter of 2008. Research and development costs for the three months ended September 30, 2009 totaled $1.2 million and selling, general and administrative expenses were $1.3 million, compared to $2.6 million and $1.7 million, respectively, for the sa
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