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ISTA Pharmaceuticals Reports Fourth Quarter and Full-Year 2008 Financial Results
Date:2/19/2009

, and we will complete a confirmatory Phase III trial for Xibrom QD to support our sNDA filing. We also have initiated a clinical study with a lower concentration of Xibrom to treat dry eye syndrome. At the end of 2008, we completed a Phase IIb clinical study for ecabet sodium and believe the recently announced positive results, in addition to our previous Phase II studies, provide a clear path forward to the Phase III study designs and NDA filing requirements. Based upon our further analysis of the ecabet sodium Phase II data and results from our Xibrom lower concentration study, we will make a decision on which product or products in our dry eye franchise to move into Phase III trials, which could start as early as 2010."

Dr. Anido concluded, "We expect 2009 will be an exciting year for ISTA with a number of catalysts. FDA approval of Bepreve will take ISTA into the largest category in which we have competed, and we believe we will have the same type of success we had with Xibrom in the ophthalmic NSAID space. We also expect to be approximately breakeven on an operating income basis in 2009, reflecting our evolution from a drug development company to a successful, commercial pharmaceutical company. Although we anticipate a difficult macro environment in 2009, we believe we have the people and strategies to utilize our deep pipeline and strong financials for continued growth in the upcoming year."

                                      Net Revenue
                         (in millions, except percentage data)

                         Year-Ended             Year-Ended
                      December 31, 2008      December 31, 2007    % Change
    Xibrom                        $63.0                  $42.1         50%
    Istalol                        14.6                   11.3         29%
    Vitrase                         5.2                    5.2          0%
    Other                           0.3            
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SOURCE ISTA Pharmaceuticals, Inc.
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