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Neurobiological Technologies, Inc. Reports Receipt of Notice From Nasdaq
Date:8/31/2007

EMERYVILLE, Calif., Aug. 31 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NTI(R)) (Nasdaq: NTII), announced today that on August 29, 2007, the Company received notification from the NASDAQ Listing Qualifications Department that it is not in compliance with the $35 million market value of listed securities requirement for continued listing on The NASDAQ Capital Market set forth in NASDAQ Marketplace Rule 4310(c)(3)(B). In accordance with Marketplace Rule 4310(c)(8)(C), the Company has a cure period of 30 calendar days, or until September 28, 2007, to regain compliance.

The Company was further advised that it does not comply with either the NASDAQ's minimum $2.5 million stockholders' equity requirement set forth in Marketplace Rule 4310(c)(3)(A) or the requirement under Marketplace Rule 4310(c)(3)(C) that the Company report at least $500,000 net income from continuing operations in the most recently completed fiscal year or in two of the last three most recently completed fiscal years. To maintain its listing, the Company must comply with at least one of these three alternative listing standards.

The Company expects that it will be able to regain compliance under Marketplace Rule 4310(c)(3)(B) through its proposed public offering of up to $65 million of its common stock, pursuant to the registration statement on Form S-1 that was filed with the SEC on August 13, 2007 and which is expected to close after the above-referenced 30-day cure period expires on September 28, 2007.

About Neurobiological Technologies, Inc.

NTI is a specialty biopharmaceutical company with expertise in identifying and acquiring promising drug candidates and in designing and managing late-stage clinical trial
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SOURCE Neurobiological Technologies, Inc.
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