Medarex Announces 2008 Third Quarter Financi...(ot asa substitute for or superior to fin...)

The following reconciliation of GAAP net income (loss) to non-GAAP net loss and GAAP net income (loss) per share to non-GAAP net loss per share is provided as a complement to results presented in accordance with GAAP because Medarex's management believes these non-GAAP financial measures provide better insight into Medarex's performance by focusing on results generated by its ongoing operations and are important in comparing current results with prior period results. Non-GAAP net loss and non-GAAP net loss per share are intended to illustrate Medarex's results of operations for the periods presented excluding the items discuss below. Medarex's management believes investors' understanding of Medarex's financial performance is enhanced as a result of our disclosing these non-GAAP financial measures. Non-GAAP net loss and non-GAAP net loss per share should not be viewed in isolation or as a substitute for GAAP net income (loss) or GAAP net income (loss) per share.

MEDAREX, INC.

Reconciliation of GAAP Net Income (Loss) to Non-GAAP Net Loss

(In thousands, except per share data)

(unaudited)

Three Months Ended Nine Months Ended

September 30, September 30,

(unaudited) (unaudited)

2008 2007 2008 2007

GAAP Net income (loss) $(45,685) $(51,555) $4,528 $17,756

Celldex net loss (1) - 4,007 2,924 11,355

Minority interest - Celldex (1) - (1,602) - (4,542)

Stock-Based compensation

expense (2) 5,442 5,955 16,701 13,776

Acquisition of in-
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