ThermoGenesis Reports First Quarter 20...(September 30 ...),Health

2008 2007

Cash flows from operating activities:

Net loss ($2,679,000) ($2,300,000)

Adjustments to reconcile net loss to net

cash used in operating activities:

Depreciation and amortization 120,000 136,000

Stock based compensation expense 123,000 628,000

Accretion of discount on short-term

investments (76,000) (295,000)

Net change in operating assets and

liabilities:

Accounts receivable, net 1,800,000 259,000

Inventories (856,000) (716,000)

Other current assets 1,000 34,000

Other assets 6,000 13,000

Accounts payable (1,555,000) (74,000)

Accrued payroll and related

expenses (149,000) (162,000)

Deferred revenue (240,000) (162,000)

Other current liabilities 569,000 227,000

Net cash used in operating activities (2,936,000) (2,412,000)

Cash flows from investing activities:

Capital expenditures (105,000) (173,000)

Purchase of investments (3,982,000) (9,766,000)

Maturities of investments 9,000,000 13,000,000

Net cash provided by investing

activities 4,913,000 3,061,000

Cash flows from financing activities:

Payments on capital lease obligations (3,000) (5,000)

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