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Kosan Announces Fourth Quarter and Full Year 2007 Financial Results and 2008 Outlook
Date:2/28/2008

trials; manufacturing; regulatory approval requirements and process; the effort and expense necessary for further development of Kosan's product candidates, including the costs of bortezomib; intellectual property matters, including Kosan's ability to obtain valid and enforceable patents covering its product candidates; Kosan's dependence on its collaboration with Pfizer for development of its motilin agonist product candidate; Kosan's need for additional financing and Kosan's strategy to enter into partnering or licensing arrangements. These and other risk factors are discussed under "Risk Factors" in Kosan's Quarterly Report on Form 10-Q for the quarter ended September 30, 2007 and other periodic filings with the SEC. Kosan expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein.

Velcade(R) (bortezomib) is a registered trademark of Millennium Pharmaceuticals, Inc.
Herceptin(R) (trastuzumab) is a registered trademark of Genentech, Inc.

Selected Financial Information

Condensed Statements of Operations

(in thousands, except per share amounts)

Three Months Ended Year Ended

December 31, December 31,

2007 2006 2007 2006

(unaudited) (unaudited)

Total revenues $5,636 $5,710 $22,707 $13,506

Operating expenses:

Research and development 13,902 8,817 47,283 37,179

General and administrative 2,108 2,090 8,162 7,823

Total operating expenses 16,010 10,907 55,445 45,002

Loss from operations (10,374) (5,197) (32,738) (31,496)

Other income, net 893 638 4,080 2,027

Net loss
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SOURCE Kosan Biosciences Incorporated
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