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IDM Pharma Reports 2007 Financial Results
Date:3/20/2008

to the decision to close the Company's operations in France following notification of sanofi-aventis' decision in December 2007 to terminate its participation in the UVIDEM development program.

Interest income increased to $0.4 million for the three months ended December 31, 2007 from $0.1 million in the prior year period. Interest income increased to $1.1 million for the year ended December 31, 2007 from $0.5 million in 2006. These increases in interest income were the result of higher investment cash balances.

Interest expense for the quarter ended December 31, 2007 was a negative expense of $1.1 million compared with no interest expense in the prior year period. Interest expense for the year ended December 31, 2007 was a negative expense of $3.9 million compared to no interest expense for the year ended December 31, 2006. The negative expense in both the quarter and year ended December 31, 2007 was to record the net decrease in the fair value of warrants issued in February and June 2007.

The foreign exchange loss, which results from changes in the value of the dollar versus the Euro on the dollar denominated inter-company loan between the Company's subsidiaries, was $0.4 million in the fourth quarter of 2007, compared to $0.9 million in the prior year period. This foreign exchange loss was $1.7 million in the year ended December 31, 2007, compared to $2.6 million in 2006.

Net loss for the fourth quarter of 2007 was $2.7 million, or $0.11 per basic and diluted share, compared to a net loss of $5.9 million, or $0.44 per share in the corresponding period in 2006. Net loss for the year ended December 31, 2007 was $18.3 million, or $0.87 per basic and diluted loss per share compared to a net loss of $23.5 million, or $1.75 per share in the year ended December 31, 2006.

Update on L-MTP-PE Regulatory Status

The Company recently announced that following presentation of data at an oral explanation hearing before the Committee for
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SOURCE IDM Pharma, Inc.
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