CryoLife's Earnings Per Share Increased 180 Percent to $0.14 in Second Quarter of 2008 from $0.05 in Second Quart...(nd $490000respectively related to the ad...)

General, administrative, and marketing expenses in the first six months of 2008 were $24.4 million compared to $23.2 million in the first six months of 2007. General, administrative, and marketing expenses in the first half of 2008 and 2007 include benefits of $530,000 and $505,000, respectively, related to the adjustment of reserves for product liability losses.

The increase in general, administrative, and marketing expenses for the three and six months ended June 30, 2008 was primarily due to increases in marketing expenses. These expenses included personnel costs, corporate advertising, and promotional materials to support the Company's expanding tissue service and product offerings and revenue growth. Additionally, there were increases in stock compensation expense over the prior year periods.

Research and development expenses were $1.3 million and $1.0 million in the second quarters of 2008 and 2007, respectively. Research and development expenses were $2.8 million and $2.0 million in the first six months of 2008 and 2007, respectively. Research and development spending in 2008 primarily focused on the Company's SynerGraft(R) products and tissues, protein hydrogel technologies, and research on cold storage and preservation of internal organs.

As of June 30, 2008, the Company had $17.3 million in cash, cash equivalents and marketable securities, of which $1.8 million was received from the U.S. Department of Defense as advance funding for the development of BioFoam protein hydrogel technology for use on the battlefield and $5.0 million was designated as long-term restricted money market funds due to a financial covenant requirement under the Company's credit agreement.

"CryoLife's many life-saving services and products have achieved dominant positions in the field of cardiac reconstruction. The clinical results achieved by these produc
'/>"/>