NUCRYST Pharmaceuticals announces year-e...(/p Effect of exchange rate changes...),Health

Effect of exchange

rate changes on cash

and cash equivalents 207 (826) 2,762 (95)

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Net decrease in cash

and cash equivalents (2,588) (2,249) (1,085) (16,975)

Cash and cash

equivalents at

beginning of year 20,429 21,175 18,926 35,901

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Cash and cash

equivalents at end

of year $ 17,841 $ 18,926 $ 17,841 $ 18,926

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NUCRYST Pharmaceuticals Corp.

Consolidated Statements of Shareholders' Equity

(unaudited)

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Common Shares Accumulated

(thousands of --------------------------- Additional Other

U.S. dollars, Stated Paid-in Comprehensive

except share data) Number Amount Capital Income (Loss)

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December 31, 2005 14,227,500 42,629 - (5,281)

Issuance of common

shares upon

conversion of

indebtedness to

related party

(note 9) 3,964,200 39,642 - -

Issuance of common

shares in connection

with restricted

shares and exercises

of stock options

and share

appreciation rights 117,913 401 - -

Stock-based

compensation - - 482 -

Foreign
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