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Echo Therapeutics Reports Third Quarter 2007 Results

Completion of Strategic Acquisition Reflected in Q3 Results

FRANKLIN, Mass., Nov. 20 /PRNewswire-FirstCall/ -- Echo Therapeutics, Inc. (OTC Bulletin Board: ECTE) today announced financial results for the third quarter ended September 30, 2007. For the quarter ended September 30, 2007, net loss was $8,677,000 or $.70 per share, compared to $1,390,000 or $.49 per share, for the same period in 2006. For the nine months ended September 30, 2007, net loss was $10,278,000, or $1.05 per share, compared to $4,229,000 or $1.60 per share, for the same period in 2006. Net loss for the three and nine months ended September 30, 2007 included purchased research and development of $6,556,000 in connection with the strategic acquisition of Echo Therapeutics, Inc. as described in more detail below.

Cash and short term investments totaled $2,218,000 at September 30, 2007, compared to $559,000 at December 31, 2006.

Recent Highlights

The quarter was highlighted by the merger of Sontra Medical Corporation with Echo Therapeutics, Inc. and the surviving Company's name change to Echo Therapeutics, Inc. The merger created a dual platform-enabled transdermal therapeutics and diagnostics company focused on multiple large markets for improved formulations of specialty pharmaceuticals and new applications of next generation transdermal diagnostics for diabetes management and hospital intensive care markets. Echo Therapeutics is now marked by the following key attributes and capabilities:

-- Two transdermal drug penetration technologies, with emphasis on

development and commercialization advanced reformulations of

well-established, FDA-approved products using Echo's AzoneTS dermal

penetration enhancement technology in concert with a 505(b)(2)

regulatory strategy and development of a next generation wireless,

needle-free, continuous transdermal glucose monitor system for the

diabetes home use and hospital intensive and critical care markets;

-- Diverse, late-stage specialty therapeutics and diabetes management

device pipeline with one FDA-approved product, a therapeutic

dermatology product candidate covered by a pending NDA filed with the

FDA and ten (10) product development programs;

-- Flexible, strategic partnership with Cato Research, an established

global contract research organization (CRO), to maximize development

and regulatory efficiencies; and,

-- Expertise from Cato Research to expand the reach of ongoing late-stage

clinical development programs in continuous transdermal glucose


About Echo Therapeutics

Echo Therapeutics is a dual platform-enabled, specialty therapeutics and diagnostics company developing an extensive pipeline of advanced topical reformulations of FDA-approved products and a portfolio of next generation wireless, needle-free continuous transdermal glucose monitor (CTGM) systems for the diabetes home use and hospital intensive and critical care markets. Echo is also developing a broad portfolio of advanced topical reformulations of well-established, FDA-approved products using its proprietary AzoneTS(TM) dermal penetration technology. Echo has submitted a New Drug Application (NDA) to the FDA for the approval of its lead AzoneTS-based product, Durhalieve(TM), for the treatment of corticosteroid responsive dermatoses. Echo's next generation CTGM system leverages its FDA-approved SonoPrep(R) ultrasound-mediated skin permeation technology platform.

SonoPrep is a registered trademark of Echo Therapeutics, Inc.

Any statements contained in this press release that do not describe historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein are based on current expectations, but are subject to a number of risks and uncertainties. The factors that could cause actual future results to differ materially from current expectations include, but are not limited to risks and uncertainties relating to our ability to develop, market and sell pharmaceutical or diagnostic products based on our AzoneTS and CTGM technologies, including AzoneTS-based Durhalieve for corticosteroid responsive dermatoses and the use of our SonoPrep ultrasound-mediated skin permeation technology platform with our CTGM system for the diabetes home use and hospital intensive and critical care markets; the success of our AzoneTS and CTGM business, research, development, and regulatory approval, marketing and distribution plans and strategies; and, our ability to raise sufficient capital in the future to fund our research and development programs, commercialize our product candidates and achieve profitability. These and other factors are identified and described in more detail in our filings with the SEC, including, without limitation, our respective annual reports on Form 10-KSB for the year ended December 31, 2006, our most recent quarterly reports on Form 10-QSB, and our current reports on Form 8-K. Echo Therapeutics, Inc. does not undertake to update these forward- looking statements.

Investor Relations Contacts:

Patrick T. Mooney, M.D., CEO


10 Forge Parkway

Franklin, MA 02038, USA

Tel: 1+ 877-476-6878

Fax: 1+ 508-553-8760

All rights reserved worldwide.

Echo Therapeutics, Inc.

(Formerly Sontra Medical Corporation)

Consolidated Balance Sheets

As of,

September 30, December 31,

2007 2006



Current Assets:

Cash and cash equivalents $2,218,246 $559,017

Inventory, net of reserve for

obsolescence - 1,556

Prepaid expenses and

other current assets 74,484 12,994

Total current assets 2,292,730 573,567

Property and Equipment, at cost:

Computer equipment 248,272 245,694

Office and laboratory equipment 590,926 590,926

Furniture and fixtures 14,288 14,288

Manufacturing equipment 197,888 197,888

Leasehold improvements 177,768 177,768

1,229,142 1,226,564

Less-Accumulated depreciation and

amortization (1,105,441) (1,017,051)

Net property and equipment 123,701 209,513

Other Assets:

Restricted cash 10,250 19,949

Deposits and other assets 2,000 2,000

Intangible assets, net 10,420,000 -

Total other assets 10,432,250 21,949

Total assets $12,848,681 $805,029


Current Liabilities:

Accounts payable $363,057 $45,817

Deferred revenue 8,333 45,833

Current portion of notes payable,

net of unamortized discount 55,208 89,808

Accrued expenses 488,650 103,365

Total current liabilities 915,248 284,823

Notes Payable, net of current portion - 54,508


Stockholders' Equity

Series A Convertible Preferred Stock,

$0.01 par value, authorized

7,000,000 shares, issued and

outstanding no shares at

September 30, 2007 and 73,334

shares at December 31, 2006 - 76,291

Common stock, $0.01 par value,

authorized 60,000,000 shares,

issued and outstanding

17,707,679 shares at September

30, 2007 and 2,776,192 shares

at December 31, 2006 177,079 27,762

Additional paid-in capital 56,494,899 34,822,306

Accumulated deficit (44,738,545) (34,460,661)

Total stockholders' equity 11,933,433 465,698

Total liabilities and

stockholders' equity $12,848,681 $805,029

Echo Therapeutics, Inc.

(Formerly Sontra Medical Corporation)

Consolidated Statements of Operations


Three Months Ended Nine Months Ended

September 30, September 30,

2007 2006 2007 2006


Product revenues $ - $10,679 $12,120 $37,619

Licensing revenue 12,500 12,500 37,500 37,501

Total revenue 12,500 23,179 49,620 75,120

Operating Expenses:

Cost of product

revenue - 9,445 1,556 61,734

Research and

development 323,078 803,754 923,172 2,489,996

Purchased research

and development 6,556,048 - 6,556,048 -

Selling, general

and administrative 1,767,587 622,518 2,812,002 1,843,534

Total operating

expenses 8,646,713 1,435,717 10,292,778 4,395,264

Loss from operations (8,634,213) (1,412,538) (10,243,158) (4,320,144)

Other income (Expense):

Interest income 21,657 28,604 35,563 109,687

Interest expense (64,131) (4,469) (70,289) (14,439)

Other income, net (42,474) 24,135 (34,726) 95,248

Net loss (8,676,687) (1,388,403) (10,277,884) (4,224,896)

Accretion of dividend on

Series A Convertible

Preferred Stock - (1,479) (483) (4,389)

Net loss applicable

to common

shareholders $(8,676,687) $(1,389,882) $(10,278,367) $(4,229,285)

Net loss per common share,

basic and diluted $(0.70) $(0.49) $(1.05) $(1.60)

Basic and diluted weighted

average common shares

outstanding 12,438,201 2,839,201 9,771,183 2,640,691

SOURCE Echo Therapeutics, Inc.
Copyright©2007 PR Newswire.
All rights reserved

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