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

cautioned not to place undue reliance on any such forward-looking statements, any of which may turn out to be wrong due to inaccurate assumptions, unknown risks, uncertainties or other factors. Genaera does not intend (and it is not obligated) to publicly update, revise or correct these forward-looking statements or the risk factors that may relate thereto.

GENAERA CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share data)

Three Months Ended Six Months Ended

June 30, June 30,

2008 2007 2008 2007

Revenues $ 45 $ 2,403 $ 1,354 $ 2,610

Costs and expenses:

Research and development 3,549 3,089 7,387 6,559

General and administrative 1,378 1,639 3,563 3,071

4,927 4,728 10,950 9,630

Loss from operations (4,882) (2,325) (9,596) (7,020)

Interest income 104 338 280 705

Loss before income taxes (4,778) (1,987) (9,316) (6,315)

Income tax benefit -- -- 281 147

Net loss $(4,778) $(1,987) $(9,035) $(6,168)

Net loss per share --

basic and diluted $(0.27) $(0.11) $(0.52) $(0.35)

Weighted average shares

outstanding -- basic and

diluted 17,465 17,449 17,464 17,446

CONDENSED BALANCE SHEETS

(Unaudited)

(In thousands)

June
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SOURCE Genaera Corporation
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