Synthetech Announces Fiscal 2008 Results(nufacturing processes. Research and d...)

Research and development expense for fiscal 2008 compared to fiscal 2007 increased $245,000, primarily due to increased compensation and related costs arising from budgeted increases in the number of chemists employed by Synthetech, and general increases in salaries and benefits. These changes were made primarily in response to improving business conditions and the need to provide competitive compensation packages.

Selling, general and administrative expense for fiscal 2008 compared to fiscal 2007 increased $321,000, primarily as the result of the planned addition of a new senior sales position in April 2007, an increase in consulting fees related to the implementation of Section 404 of the Sarbanes-Oxley Act and an increase in stock-based compensation expense.

The Company's cash and cash equivalents were $1.1 million at March 31, 2008, compared to $259,000 at March 31, 2007. As of March 31, 2008, Synthetech's working capital was $4.4 million, compared to $5.6 million at March 31, 2007. The decrease in working capital between the two periods is primarily the result of the fiscal 2008 net loss of $1.2 million.

Synthetech, Inc.

Condensed Statements of Operations

(unaudited)

Three Months Ended Year Ended

(in thousands, except per March 31, March 31,

share data) 2008 2007 2008 2007

Revenue $4,557 $4,256 $14,561 $12,910

Cost of revenue 3,437 3,030 11,707 9,269

Gross income 1,120 1,226 2,854 3,641

Research and development 380 277 1,362 1,117

Selling, general and

administrative 612 635 2,603 2,282

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