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Spectral announces third quarter 2008 results
Date:11/12/2008

ths of 2008. In future years, this temporary decrease should be offset as revenues from a new license agreement, which was signed in late 2007, start to be realized.

Selling, general and administrative expenses for the three months ended September 30, 2008 were $729,000, compared to $799,000 for the corresponding period in 2007. These expenses for the nine months ended September 30, 2008 were $2,295,000, compared to $2,375,000 for the same prior year period due to the continued maintenance of a low cost operating structure.

For the three months ended September, 2008, the Company reported a loss of $332,000 or ($0.01) per share compared to a loss of $382,000 or ($0.02) per share for the corresponding period in 2007. For the nine months ended September, 2008, the loss was $1,199,000 or ($0.05) per share, compared with a loss of $968,000 or ($0.04) per share for the corresponding period in 2007. The higher loss is attributable solely to the reduction in royalties.

Cash and short term investments at September 30, 2008 totalled $4,204,000 compared with $4,927,000 at December 31, 2007. Management expects that the Company will maintain a cash and short term investment balance of approximately $4,000,000 for the rest of the year.

About Spectral Diagnostics

Spectral is a leader in the battle against sepsis. Spectral's lead product is its Endotoxin Activity Assay (EAA(TM)), the only FDA cleared assay for the measurement of endotoxin. With the growing awareness for the role of endotoxemia in sepsis and the increasing number of therapies being developed for this indication, Spectral is well-positioned to promote the adoption of the EAA(TM), which can be used to identify patients, enable therapeutics and monitor treatment. Spectral is listed on TSX under the symbol SDI.

Forward-looking statement

Information in this news release that is not current or historical factual information may constitute forward-looking information within
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SOURCE Spectral Diagnostics Inc.
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