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EpiCept Corporation Reports Third Quarter 2007 Operating and Financial Results
Date:11/4/2007

n 15 million people in the U.S. Three clinical trials for NP-1 are underway. Two Phase IIb trials are ongoing, one in diabetic peripheral neuropathy and the second in peripheral herpetic neuropathy. Top-line results from the trial in diabetic neuropathy are expected late this year or early in 2008. Patient dosing has begun in a Phase III study in chemotherapy-induced peripheral neuropathy, which will be conducted by the National Cancer Institute funded Community Clinical Oncology Program.

EPC2407 - a vascular disruption agent that also has potent direct apoptotic activity on cancer cells. EpiCept announced in October that it had completed enrollment in its Phase Ia clinical trial for EPC2407 and that the trial met all of its objectives. EpiCept is currently evaluating the pharmacodynamic effects of EPC2407 with different dosage schedules. A Phase Ib combination trial for EPC2407 with other chemotherapeutic agents is being planned. The company anticipates initiating this combination trial in 2008.

Azixa(TM) - a compound discovered by EpiCept and licensed to Myriad Genetics, Inc. as part of an exclusive, worldwide development and commercialization agreement. EpiCept announced in the third quarter that Myriad had initiated a third Phase II clinical trial for Azixa in patients with non-small-cell lung cancer that has spread to the brain. Two additional Phase II trials for Azixa are also underway in Glioblastoma multiforme and in melanoma that has spread to the brain.

Financial and operating highlights

General and Administrative (G&A) Expense

The company's G&A expense decreased by $0.1 million from $2.5 million for the third quarter of 2006 to $2.4 million for the third quarter of 2007.

G&A expense decreased by $2.8 million from $11.8 million for the nine months ended September 30, 2006 to $9.0 million for the nine months ended September 30, 2007. The decrease was primarily attributable to lower stock- based compensation, premises, leg
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