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

al, personnel and insurance expenses for the nine months ended September 30, 2007 as compared to the same period in 2006.

Research and Development (R&D) Expense

R&D expense increased by $0.3 million from $4.4 million for the third quarter of 2006 to $4.7 million for the third quarter of 2007. During the 2007 quarter the company proceeded with two clinical trials of NP-1, which commenced in April 2007, prepared its response to the EMEA regarding the Day 120 List of Questions related to the Ceplene MAA and continued its Phase I clinical trial of EPC 2407. During the third quarter of 2006, the company's research and development efforts concentrated on the continuation of its Phase III clinical trial for LidoPAIN SP, the registration of Ceplene in Europe as remission maintenance therapy for AML and preparing EPC2407 for an IND filing and commencement of clinical trials.

R&D expenses decreased by $0.6 million from $12.3 million for the nine months ended September 30, 2006 to $11.7 million for the nine months ended September 30, 2007. During the nine months ended September 30, 2007, the Company's clinical activity increased significantly with the initiation of three clinical trials of NP-1 and the continuation of its Phase I clinical trial of EPC 2407. Consulting expenses also increased significantly as the company received and reviewed the EMEA's Day 80 report and the Day 120 List of Questions related to the Ceplene MAA, submitted a written response to the Day 120 List of Questions, and gave an oral presentation in September. The increase in clinical activity and consulting expense during the nine months ended September 30, 2007 was offset by a reduction in preclinical and manufacturing activity. During the nine months ended September 30, 2006, EpiCept's research and development efforts concentrated on preparing EPC2407 for an IND filing and commencement of clinical trials, the continuation of a Phase III clinical trial for LidoPAIN SP, preparation of t
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