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Genaera Corporation Announces Third Quarter Financial Results
Date:11/9/2007

tock. The decrease in the nine-month period ended September 30, 2007, was due principally to decreases in stock-based compensation expense for stock options and restricted stock, partially offset by increases in costs associated with the departure of an executive in the current year.

The Company's cash, cash equivalents and short-term investment balance was $23.2 million at September 30, 2007.

"During the third quarter, both of our core assets, MEDI-528 for asthma and trodusquemine, or MSI-1436, for type 2 diabetes and obesity, progressed and remain on track with plan. Positive interim Phase 1 trodusquemine data announced in the quarter is another example of hitting stated milestones," said Jack Armstrong, President and Chief Executive Officer. "We continue to focus internal resources on the MSI-1436 program while maintaining control of our spending and remaining committed to meet our milestone targets to drive shareholder value."

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 sta
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