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Genaera Corporation Announces Second Quarter Financial Results
Date:8/11/2008

periods in 2007. The decrease in the three-month period ended June 30, 2008 was due principally to decreases in realignment costs, bonus expense, public company expenses and accounting fees. The decrease was partially offset by an increase in stock-based compensation expense. The increase in the six-month period ended June 30, 2008 was due principally to an increase in stock-based compensation expense. This increase was partially offset by decreases in realignment costs, payroll expenses, bonus expense, accounting fees and public company expenses.

The Company's cash, cash equivalents and short-term investment balance was $12.8 million at June 30, 2008.

About Genaera

Genaera Corporation is focused on advancing the science and treatment of metabolic diseases. The Company has significant market opportunities with a first-in-class molecule, trodusquemine (MSI-1436), that has the potential to redefine the treatment paradigm for obesity and type 2 diabetes and is presently in a phase 1 trial in obesity. In addition, Genaera has a value-driven, fully out-licensed partnership with MedImmune, Inc. for a second core program that is presently undergoing phase 2 clinical testing in asthma. Genaera is committed to directing resources to its core program and the aggressive clinical development of its key assets to build stockholder value. For further information, please see our website at http://www.genaera.com.

This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties, known and unknown. Forward-looking statements reflect management's current views and are based on certain expectations and assumptions. Such statements include, among others, statements regarding the preliminary results, clinical development plans and prospects for Genaera's programs including trodusquemine (MSI-1436) and t
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