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Human Pheromone Sciences, Inc. - Shareholder Update

SAN JOSE, Calif., Oct. 27 /PRNewswire-FirstCall/ -- HPSI (OTC Bulletin Board: EROX) releases letter to its shareholders

Dear Shareholders,

In light of events that have shaken the investment community around the

world over the past several weeks, I want to take this opportunity to

update you as to what is happening in your Company at the present time.

Excluding technology advancements, an update of which will be provided

very shortly in another release, the objectives and strategies for the

Company for this year and 2009 are as follows:

-- The Company is continuing to work closely with our current licensees as

they undertake programs to introduce consumer products containing our

patented compounds.

During this year we have continued to be closely involved with the J&J

Personal Products Group as they continue product development efforts

under our License Agreement. This project is ongoing and viable.

In mid 2007, we entered into an agreement with Schwarzkopf and Henkel,

for the inclusion of our patented technology in several of their got2b

brand products sold in the United States. During this year, the

Agreement has been expanded geographically to include Henkel's European

businesses and an additional product line has been included in the


We continue, this year, to work with other U.S. and international

companies including Avon Products, who continue to utilize our

pheromone compounds. In addition, we continue to look

internationally, and continue to enter into agreements with companies

doing business in Mexico and Japan.

In addition, we are in discussions with several other companies in the

United States and overseas, in efforts to open new markets for our

current technology with local companies, with their own infrastructures

here in this country and in foreign markets.

Not only has our Company benefited financially from our agreements with

these world-class companies, our association with them has confirmed

the viability of our technology, an imperative for a small

technology-based business to generate interest of others in the longer


-- While our historical business model has been validated by these

relationships, we are still dependent upon the internal timetable of

these licensees for the generation of revenues for our Company.

However, there are other viable and fast growing channels in which

consumer products are sold, including electronic media, and

direct-to-consumer companies, that may provide a more consistent flow

of revenues to our Company. During this year, your management has been

working to introduce our technology to several companies who are in

leaders in these fields. We hope to be able to provide more specifics

about these efforts shortly.

-- Technology - our heritage, our future; another focus of our Company.

During 2008, we have spent significant amounts of time, but not a lot

of money, in the development of new compounds. You will be hearing

more about the positive results of these efforts in the next two weeks.

-- Merger and Acquisition Opportunities. We feel strongly that our

current technology and new research and development initiatives can

continue to attract world-class partners. We have also undertaken a

program to seek mergers and/or other types of partnerships that can

enhance shareholder value - our ultimate goal.

Unlike many companies whose share price has dropped radically this year,

who have no historic operations, an un-tested business plan and tens of

millions of shares outstanding, our Company has existing relationships and

agreements with worldwide leaders in the consumer products industry, is in

discussions with other international companies for the use of our

technology, looking to expand our relationships to provide a more

consistent stream of revenues, and has a pipeline of additional compounds

that can offer patented differentiation. And, importantly, our cash

assets exceed our current market valuation, and we have no

interest-bearing debt.

Thank you for interest and support. Please do not hesitate to contact me

directly if you have any questions.


William P. Horgan

Chairman and CEO


SOURCE Human Pheromone Sciences, Inc.
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