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Genaera Corporation Announces 2008 Financial Results
Date:3/3/2009

ra's general and administrative expenses for the year and quarter ended December 31, 2008 were $6.5 million and $1.5 million, respectively, compared to $6.8 million and $2.5 million, respectively, for the same periods in 2007. The decrease in general and administrative expenses for the year ended December 31, 2008 as compared to the same period in 2007 was due to decreases in bonus expense, legal and accounting fees, personnel expenses, realignment costs, investor and public relations expense, public company expenses and consulting fees as a result of cost cutting initiatives implemented in May 2008. The decreases were partially offset by an increase in stock-based compensation expense.

The Company's cash, cash equivalents and short-term investment balance was $8.1 million at December 31, 2008.

About Genaera

Genaera Corporation is developing trodusquemine (MSI-1436), for type 2 diabetes and obesity currently in phase 1 clinical testing and has a fully out-licensed partnership with MedImmune, Inc. that is in phase 2 clinical testing in asthma. For further information, please see our website at www.genaera.com.

This announcement contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties, known and unknown. Forward-looking statements reflect management's current views and are based on certain expectations and assumptions. You may identify some of these forward-looking statements by the use of words in the statements such as "anticipate," "believe," "continue," "develop," "expect," "plan" and "potential" or other words of similar meaning. Genaera's actual results and performance could differ materially from those currently anticipated and expressed in these and other forward-looking statements as a result
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