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Transition Therapeutics Announces Third Quarter Fiscal 2009 Financial Results
Date:5/13/2009

and facility expenses. These increases have been partially offset by decreases in insurance, professional and regulatory costs as the comparative periods contained increased costs associated with the NASDAQ listing of August, 2007.

Amortization

Amortization for the three-month period ended March 31, 2009, decreased $38,577 to $690,752 as compared to $729,329 for the three-month period ended March 31, 2008. For the nine-month period ended March 31, 2009, amortization increased $120,596 to $2,173,149 as compared to $2,052,553 for the same period in fiscal 2008.

The three-month period decrease in amortization expense is primarily due to reduced amortization expense relating to the workforce acquired from Protana due to second quarter workforce reductions. The reduction in amortization expense was partially off-set by the amortization expense resulting from the assets acquired from Forbes during the first quarter of fiscal 2009. The nine-month period increase in amortization expense is due to increased amortization expense relating to the workforce acquired from Protana due to a workforce reduction, the full-quarter impact of amortizing the additional consideration paid to acquire the ENI technology in December, 2007 and the amortization expense resulting from the assets acquired from Forbes.

Interest Income, net

Interest income for the three-month period ended March 31, 2009 was $170,553 as compared to $638,959 for the same period in fiscal 2008, resulting in a decrease of $468,406. For the nine-month period ended March 31, 2009, interest income was $930,682 as compared to $1,927,990 for the same period in fiscal 2008, resulting in a decrease of $997,308. The decreases in interest income resulted from decreases in effective interest rates.

    About Transition
    ----------------

Transition is a biopharmaceutical company, developing novel therapeutic
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SOURCE Transition Therapeutics Inc.
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