Medarex Announces 2008 First Quarter Financi...(the research development and comm...),Health

research, development and commercialization of therapeutic vaccines,

which is outside the scope of Medarex's core business operations.

(2) For the three months ended March 31, 2008, Medarex incurred $5.3

million in non-cash stock compensation expense, of which $2.0 million

is included in research and development expenses and $3.3 million is

included in general and administrative expenses. Stock compensation

expense includes costs associated with stock awards, including stock

options which were recorded in accordance with the provisions of FAS

123(R). FAS 123(R) requires companies to record stock-based payments

in the financial statements using a fair value method. Medarex adopted

FAS 123(R) on a modified prospective basis beginning on January 1,

2006.

In addition to excluding the items described in footnotes 1 and 2 above, items have been excluded based upon management's evaluation (on an individual basis) of both quantitative and qualitative aspects of the item, including, (i) size and nature, (ii) whether it relates to our ongoing business operations, and (iii) whether management expects it to occur as part of our normal business on a regular basis. Those additional items excluded for purposes of determining non-GAAP net loss and non-GAAP net loss per share are gain on sales of Genmab stock and equity in net loss of affiliate.