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Cryo-Cell International, Inc. Reports Third Quarter 2007 Results
Date:10/15/2007

r the nine month period ended August 31, 2006. The Company reported a net loss for the nine month period ended August 31, 2007 of approximately ($3.3 million), or ($0.29) per basic common share, compared to a net loss of approximately ($1.9 million), or ($0. 16) per basic common share, for the nine month period ended August 31, 2006. The net loss for the nine month period ended August 31, 2007 is attributable to a 7% increase in cost of sales and a 14% increase in marketing, general and administrative expenses partially offset by the 3% increase in revenue and a 23% increase in licensee income. In addition, the net loss in 2007 was increased by certain expenses in the 2007 period, including approximately $481,000 in research and development expenses, and approximately $194,000 in stock option compensation which is the result of the Company's adoption of FASB Statement No. 123(R).

The increase in cost of sales during 2007 period was in part due to expenses associated with the Company's introduction of U-Cord service enhancements, including return shipping by a medical courier for all new U.S. customers, and an increase in cord blood collection reimbursements. The increase in marketing, general and administrative expenses reflects the Company's previously announced strategic initiatives to strengthen the resources allocated to sales and marketing. This resulted in increased expenses associated with various marketing and sales initiatives. Also, contributing to the increase in marketing, general and administrative expenses were approximately $580,000 in professional fees associated with the proxy contest and approximately $126,000 in stock option compensation which is the result of the Company's adoption of FASB Statement No. 123(R).

The Company recognized approximately $779,000 in licensee income for the nine months ended August 31, 2007, compared to approximately $635,000 for the nine months ended August 31, 2006. Licensee income for the nine months ended
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SOURCE Cryo-Cell International, Inc.
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