Neurobiological Technologies, Inc. Reports Fourth Quarter and Fiscal Year-End Financial Results for 2007 Announces 1-for-7 Reverse S...(- FINANCIAL TABLES TO FOLLOW - CONDEN...)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

Three months ended June 30, Year ended June 30,

2007 2006 2007 2006

REVENUES

Royalty income $1,901,000 1,377,000 $6,853,000 $5,063,000

Technology sale

and collaboration

services 2,093,000 2,946,000 10,820,000 7,276,000

Total revenues 3,994,000 4,323,000 17,673,000 12,339,000

EXPENSES

Research and

development 7,508,000 7,944,000 26,737,000 22,808,000

Acquired in-process

research

and development -- -- -- 11,501,000

General and

administrative 1,792,000 1,225,000 6,537,000 5,968,000

Total expenses 9,300,000 9,169,000 33,274,000 40,277,000

Operating loss (5,306,000) (4,846,000) (15,601,000) (27,938,000)

Non-cash gain on

change in fair

value of warrants 980,000 -- 980,000 --

Investment income 140,000 171,000 494,000 399,000

Loss before

income tax $(4,186,000) $(4,675,000) $(14,127,000) $(27,539,000)

Provision for

income taxes -- 170,000 -- 300,000

NET LOSS $(4,186,000) $(4,845,000) $(14,127,000) $(27,839,000)

BASIC and DILUTED NET

LOSS PER SHARE $(0.13) $(0.16) $(0.47) $(0.98)

Shares used in basic

and diluted net

loss per share

calculation 32,685,615 29,546,326 30,364,114 28,490,373

SELECTED CONSOLIDATED BALANCE SHEET DATA

June 30, June 30,

2007 2006