MiddleBrook Pharmaceuticals Reports Fourth Quarter and Full Year 20...( Note payable ...)

Note payable - 75,000

Deferred product revenue - 189,000

Total current liabilities 7,273,296 17,255,849

Warrant liability 2,100,000 -

Deferred contract revenue 11,625,000 11,625,000

Deferred rent and credit on lease

concession 1,177,840 1,252,900

Total liabilities 22,176,136 30,133,749

Noncontrolling interest 7,337,811 -

Commitments and contingencies

Stockholders' equity (deficit):

Preferred stock, undesignated - -

Common stock, par value 467,488 363,625

Capital in excess of par value 189,019,188 164,593,930

Accumulated deficit (195,334,828) (153,085,462)

Accumulated other comprehensive loss - (73)

Total stockholders' equity (deficit) (5,848,152) 11,872,020

Total liabilities and

stockholders' equity (deficit) $23,665,795 $42,005,769

MIDDLEBROOK PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Year Ended December 31,

2007 2006

Cash flows from operating activities:

Net loss $(42,249,366) $(41,990,154)

Adjustments to reconcile net income

to net cash used in operating

activities:

Loss attributable to non-

controlling interest (162,189)
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