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ISTA Pharmaceuticals Reports Second Quarter 2008 Financial Results
Date:8/7/2008

second quarter ended June 30, 2008, were $0.8 million, as compared to $0.6 million in the second quarter of 2007.

At June 30, 2008, ISTA had cash and short-term investments of $21.8 million and long-term investments in auction rate securities of $4.4 million.

At June 30, 2008, ISTA reclassified the indebtedness under its convertible notes from a long term liability to a current liability as a result of the note holders right to require the Company to redeem the principal amount of the convertible notes at anytime on or after June 22, 2009.

Reconfirming 2008 Financial Outlook

-- We continue to expect our full-year 2008 net revenue will be approximately $75 to $82 million.

-- We continue to expect our full-year 2008 gross margin will be approximately 70% to 73%, subject to quarterly fluctuations based on revenue mix.

-- Depending upon the progress of our clinical and pre-clinical programs, we continue to expect that our research and development expenses for the full year of 2008 will be approximately $34 to $38 million, including stock-based compensation expense, which we continue to estimate will be approximately $0.5 to $1 million.

-- We continue to anticipate that our selling, general, and administrative expenses for the full-year 2008 will be approximately $50 to $54 million, including stock-based compensation expense, which we continue to estimate will be approximately $3.5 to $4.5 million.

Conference Call

ISTA will host a conference call with a simultaneous webcast today, August 7, 2008, at 5:00 PM Eastern Time, to discuss its second quarter 2008 results. To access the live conference call, U.S. and Canadian participants may dial 866-314-5232; international participants may dial 617-213-8052. The access code for the live call is 15676858. To access the 24-hour audio replay, U.S. and Canadian participants may dial 888-286-8010; international participants may dial 617-801-6888. The access code for the
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SOURCE ISTA Pharmaceuticals, Inc.
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