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ULURU Inc. Reports Second Quarter 2009 Financial Results
Date:8/14/2009

on identifying the right strategic partner. We are pleased to announce that we are in discussions with multiple wound care companies and we plan to conclude negotiations by the end of the year".

Operating Results

Revenue for the second quarter of 2009 was $136,000, compared to $96,000 for the second quarter of 2008. The increase of approximately $40,000 in revenue from the second quarter of 2008 compared to the second quarter of 2009 was due to an increase in Altrazeal(TM) product sales of $47,000 and $15,000 in sponsored research as the prior year included a non-recurring revenue adjustment. These revenue increases were partially offset by a decrease of $10,000 in Zindaclin(R) royalties.

Research and development expenses for the second quarter of 2009 were $854,000, including $213,000 in share-based compensation, compared to $888,000, including $40,000 in share-based compensation, for the second quarter of 2008. The decrease of approximately $33,000 in research and development expenses was primarily due to lower product development costs of $265,000 associated with our Altrazeal(TM) and OraDisc(TM) technologies. This decrease was partially offset by an increase of $96,000 in regulatory expenses for consultants engaged for our regulatory filings for Altrazeal(TM) related products, increased clinical testing expenses of $21,000 for Altrazeal(TM) and Altrazeal(TM) Silver, and additional compensation costs of approximately $125,000, primarily for the vesting of certain restricted stock awards associated with the Company's workforce reduction in June 2009.

Selling, general and administrative expenses for the second quarter of 2009 were $1.8 million, including $279,000 in share-based compensation, compared to $1.3 million, including $220,000 in share-based compensation, for the second quarter of 2008. The increase of approximately $0.5 million in selling, general and administrative expen
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