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Genta Incorporated Announces Second Quarter 2008 Financial Results and Corporate Highlights
Date:8/7/2008

0.9 million for the six months ended June 30, 2008, compared with $7.5 million for the six months ended June 30, 2007. This increase was primarily due to the recognition in March 2008 of $2.5 million for license payments on tesetaxel and higher expenses from the AGENDA clinical trial, partially offset by lower payroll costs.

Selling, general and administrative expenses were $2.6 million for the second quarter of 2008, compared with $4.7 million for the second quarter of 2007, and $6.2 million for the six months ended June 30, 2008, compared with $8.8 million for the six months ended June 30, 2007. These decreases were primarily due to lower payroll costs, resulting from the two workforce reductions, as well as lower administrative expenses.

In May 2008, to reduce its ongoing expenses, the Company reduced its office space. The Company's landlord received a termination payment of $1.3 million, comprised of security deposits, and will receive a future payment of $2.0 million upon the earlier of July 1, 2009 or the Company's completion of a business development transaction that exceeds $5.0 million in upfront cash. This agreement resulted in an incremental $3.3 million in expenses for the second quarter and six months ended June 30, 2008.

In the fourth quarter of 2006, the Company recorded an expense of $5.3 million that provides for the issuance of 2.0 million shares of Genta common stock, for a settlement in principle of class action litigation. This liability was marked to market until the date that the settlement became final on June 27, 2008. Changes in the price of Genta's common stock resulted in income of $0.1 million in the second quarter of 2008, compared with $0.2 million in the second quarter of 2007, and income of $0.3 million for the six months ended June 30, 2008, compared with $1.8 million for the six months ended June 30, 2007.

On June 5, 2008, the Company entered into a securities purchase agreement with certain institutiona
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