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ExonHit Therapeutics Invested Strongly in 2008 for Pivotal 2009 Results
Date:3/3/2009

7.

Marketing and selling expenses have increased by 9% to EUR 1.1 million in 2008, compared to EUR 1.0 million in 2007. This rise is driven by increased marketing effort in the diagnostic field.

General and administrative costs increased by 30% to EUR 4.6 million in 2008, compared to EUR 3.5 million in 2007. This increase is primarily due to significant expenses incurred to defend our IP portfolio.

Operating expenses increased by 18% to EUR 15.6 million in 2008 compared to EUR 13.2 million in 2007. In 2008, 63% of these expenses were allocated to R&D compared to 65% in 2007.

Consequently, the company posted an operating loss of EUR 11.4 million in 2008, compared to EUR 7.8 million in 2007.

The end of some leasing agreements explains the decrease in interest expenses between 2007 and 2008 from EUR 0.8 million to EUR 0.5 million. Meanwhile, a decrease on our cash and cash equivalent balances combined with the decrease of interest rates over 2008 leads to lower financial gains in 2008 at EUR 0.9 million versus EUR 1.3 million in 2007. Nonetheless, the favorable evolution of the euro/dollars exchange rate between the two years has led to a currency rate gain of EUR 0.02 million during 2008, compared to a loss of EUR 0.7 million in 2007. As a consequence, the financial result amounts to a gain of EUR 0.38 million in 2008 compared to a loss of EUR 0.22 million in 2007.

The modification of the way research tax credits have been calculated since January 1, 2008 led to an increase of the income tax benefit from EUR 0.7 million in 2007 to EUR 2.1 million in 2008.

As a consequence, ExonHit recorded a consolidated net loss of EUR 8.9 million in 2008, compared to EUR 7.3 million in 2007.

- Balance sheet

On December 31, 2008, the cash position of the Company amounted to EUR 21.0 million, compared to EUR 31.3 million at the end of 20
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SOURCE ExonHit Therapeutics SA
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