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Neurochem reports results for fourth quarter and fiscal year 2007 and important advances on corporate objectives
Date:2/20/2008

aled $1,397,000 for the current quarter ($10,581,000 for the year), compared to $2,819,000 for the same quarter in the previous year ($11,522,000 for the year). These costs are incurred to support the overall activities of the Company. The decrease is mainly attributable to a reduction in management bonuses, and in performance-based fees due to Picchio International Inc.

Arbitral award amounted to nil for the current quarter and year compared to nil for the quarter ended December 31, 2006 and $1,835,000 for the year ended December 31, 2006. This expense related to the dispute with Immtech Pharmaceuticals, Inc. (formerly known as Immtech International, Inc. (Immtech), which came to a conclusion in January 2007 when Immtech, the University of North Carolina at Chapel Hill (UNC), and Georgia State University Research Foundation, Inc. filed with the Federal District Court for the Southern District of New York, U.S.A. a Notice of Voluntary Dismissal. The plaintiffs voluntarily dismissed their complaint against Neurochem in the Federal District Court without any payment, license, business agreement, concession or compromise by Neurochem.

Reimbursable costs amounted to $64,000 for the current quarter ($396,000 for the year), compared to $178,000 for the same period in the previous year ($712,000 for the year), and consist of costs incurred on behalf of Centocor in respect of eprodisate (KIACTA(TM))-related activities and reimbursable by Centocor.

Stock-based compensation amounted to $1,421,000 for the current quarter ($4,275,000 for the year), compared to $924,000 for the corresponding quarter in the previous year ($3,569,000 for the year). This expense relates to stock options and stock-based incentives, whereby compensation cost in relation to stock options is measured at fair value at the date of grant and is expensed over the award's vesting period. The increase is due to new stock options granted during the past year.

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SOURCE NEUROCHEM INC.
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