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Human Pheromone Sciences Announces First Quarter Results
Date:5/15/2008

Results Impacted by Downturn in U.S. Beauty Market

SAN JOSE, Calif., May 15 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or "the Company") today announced results for the first quarter ended March 31, 2008. Net revenues of $266,000 represented a 20% decrease from the revenues of $334,000 in the prior year period, and resulted in a net loss of $63,000 ($.02 per share) as compared with net income of $24,000 ($.01 per share) for the same period of 2007. At March 31, 2008, the Company reflected cash balances of $1,397,000 compared with $1,437,000 in cash at December 31, 2007, a $40,000 reduction in the quarter. There was no bank indebtedness at either period and current liabilities were the same at both periods, excluding deferred revenue changes.

According to a Company spokesperson, the results were in line with Company forecasts, and reflected the overall downturn in the U.S. Fragrance and Beauty Market sales during the period. "We had anticipated the weakness of revenues in our largest consumer product segment, and, as such, had undertaken the program to expand the markets for the use of our patented technology in other consumer product arenas. Some of the shortfall in the basic beauty area was offset by revenues received under our licensing agreement signed last year with Schwarzkopf & Henkel, in the hair care market, which was expanded in the current quarter, and recognition of revenue from our license agreement with Johnson & Johnson entered into in September 2006. It is apparent that such diversification is the way to hedge against a potential continued decline in a single market that represented our initial focus in the Fragrance and Beauty business," the spokesperson noted. As previously stated, the Company's focus in 2008 is the generation of additional licensing and supply activities, and increasing product development spending for additional compounds that have been identified and is
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SOURCE Human Pheromone Sciences, Inc.
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