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Nuvelo Reports Second Quarter 2008 Financial Results
Date:7/23/2008

1995. Such statements are based on our management's current expectations and involve risks and uncertainties. Actual results and performance could differ materially from those projected in the forward-looking statements as a result of many factors, including, without limitation, uncertainties relating to drug discovery and the regulatory approval process; clinical development processes; enrollment rates for patients in our clinical trials; changes in relationships with strategic partners and dependence upon strategic partners for the performance of critical activities under collaborative agreements; and the impact of competitive products and technological changes. These and other factors are identified and described in more detail in Nuvelo's filings with the SEC, including without limitation Nuvelo's quarterly report on Form 10-Q for the quarter ended March 31, 2008 and subsequent filings. We disclaim any intent or obligation to update these forward-looking statements.

NUVELO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

Three Months Six Months

Ended Ended

June 30, June 30,

2008 2007 2008 2007

Contract revenues $15,062 $45,825 $15,125 $46,735

Operating expenses:

Research and development 7,630 11,233 19,148 23,958

General and administrative 3,653 7,273 7,662 12,639

Restructuring - - 2,470 -

Facility exit charge - - 1,472 -

Impairment of goodwill 4,671
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SOURCE Nuvelo, Inc.
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