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VirtualScopics Achieves Operating Cash Flow Breakeven in the Fourth Quarter 2008; Reports Record 2008 Revenue and Gross Profit
Date:2/25/2009

ment, net 355,479 542,679 Other assets 156,788 280,317 Total assets $6,861,024 $8,181,016 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued expenses $659,009 $626,693 Accrued payroll 554,425 221,013 Unearned revenue 291,594 279,275 Total current liabilities 1,505,028 1,126,981 Commitments and Contingencies Stockholders' Equity Convertible preferred stock, $0.001 par value; 15,000,000 shares authorized; 8,400 shares designated Series A; issued and outstanding: 3,976 at December 31, 2008, 4,001 at December 31, 2007; liquidation preference $1,000 per share 4 4 6,000 shares designated Series B; issued and outstanding: 4,226 at December 31, 2008, 4,230 at December 31, 2007; liquidation preference $1,000 per share 4 4 Common Stock, $0.001 par value; 85,000,000 shares authorized; shares issued and outstanding: 23,502,352 at December 31, 2008, 23,225,664 at December 31, 2007 23,503 23,226 Additional paid-in capital 16,546,550 15,715,557 Accumulated deficit (11,214,065) (8,684,756) Total stockholders' equity 5,355,996 7,054,035 Total liabilities and stockholders' equity $6,861,024 $8,181,016

    CONTACT:  Company Contact:
              Molly Henderson
              Chief Business and Financial Officer
              500 Linden Oaks
              Rochester, New
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SOURCE VirtualScopics, Inc.
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