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Therapeutic DNA Vaccine Company Inovio Biomedical Reports Second Quarter 2008 Financial Results
Date:8/7/2008

o's securities, and other factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2007, our 10-Q for the six months ended June 30, 2008 and other regulatory filings from time to time including, but not limited to, the registration statement/proxy statement and related consent solicitation materials to be filed by Inovio under Form S-4 pursuant to the merger agreement. There can be no assurance that any product in our product pipeline will be successfully developed or manufactured, that final results of clinical studies will be supportive of regulatory approvals required to market licensed products, that the proposed merger will be consummated or that any of the forward-looking information provided herein will be proved accurate.

INOVIO BIOMEDICAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

June 30,2008 December 31,2007 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 8,106,802 $ 10,250,929 Short-term investments — 16,999,600 Accounts receivable 560,796 1,139,966 Prepaid expenses and other current assets 561,042 613,656 Total current assets 9,228,640 29,004,151 Investments 12,487,900 — Fixed assets, net 403,108 401,727 Intangible assets, net 5,962,380 6,186,430 Goodwill 3,900,713 3,900,713 Other assets 282,000 282,000 Total assets $ 32,264,741 $ 39,775,021 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 1,881,287 $ 1,807,305 Accrued clinical trial expenses 594,483 573,767 Common stock warrants 453,196 367,071 Deferred revenue 546,610 544,410 Deferred rent 71,094 61,946 Total current liabilities 3,546,670 3,354,499 Deferred revenue, net of current portion 4,172,811 4,335,806 Deferred rent, net of current portion 59,591 99,712 Deferred tax liabilities 918,750 950,250 Total liabilities 8,697,822 8,740,267 Stockholders' equity: Preferred stock 113 113 Common stock 43,886 43,815 Additional paid-in capital 171,330,7
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