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Human Pheromone Sciences Announces First Quarter Results
Date:5/14/2009

Current Period Results Impacted by Downturn in Worldwide Beauty Markets

SAN JOSE, Calif., May 14 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC Bulletin Board: EROX) ("HPS" or the "Company") today announced results for the first quarter ended March 31, 2009. Net revenues of $165,000 represented a 38% decrease from the revenues of $266,000 in the prior year period, and resulted in a net loss of $181,000 ($0.04 per share) as compared with net loss of $63,000 ($0.02 per share) for the same period of 2008. At March 31, 2009, the Company reflected cash balances of $664,000 compared with $907,000 in cash at December 31, 2008, a $243,000 reduction in the quarter. There was no bank indebtedness at either period.

According to a Company spokesperson, "the revenue and cash declines were in line with the Company's internal forecasts, reflecting the extremely difficult overall adverse economic climate and the significant downturn in the worldwide Fragrance and Beauty Markets. We had anticipated the reduction of revenues on sales to our once largest fragrance and beauty-based company, and, as such, embarked upon a program to expand other potential 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 supply and royalty revenues received under our licensing agreement with Schwarzkopf & Henkel in the worldwide hair care and personal product markets. Pheromone purchases by our two primary licensees, increased by 79%, in anticipation of a new product launch in May 2009 by one of these companies. While the selling price of the pheromones is quite low compared to that of prior licensees, our newer agreements provide for royalties on licensee sales of products containing our patented technology. As such, we would anticipate an increase in royalty income in subsequent periods this year."

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SOURCE Human Pheromone Sciences, Inc.
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