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Biopure Announces 2007 Third Quarter Financial Results
Date:8/23/2007

expenses in 2007. Partially offsetting the decline in these costs was higher salaries expense due to increased headcount.

Sales and marketing expenses increased to $341,000 for the third quarter of fiscal 2007, from $197,000 for the same period in 2006, due to strategic planning activities for Hemopure in the U.K. and to increased personnel in South Africa.

General and administrative expenses were $2.1 million for the third quarter of fiscal 2007 compared to $2.2 million for the corresponding period in 2006 due to lower insurance premiums.

Financial Condition

At July 31, 2007, Biopure had $6.3 million in cash on hand.

Recent Developments

Marketing

The increase in Hemopure sales in South Africa, while not financially significant, reflects company-led marketing and gradually increasing use of the product. Hemopure has been ordered by members of every private hospital group in South Africa at a price based on current exchange rates of approximately $830 per unit. Twenty-two public hospitals stock donated product, and the South African army is a customer. Most of the sales are to private hospitals; sales to the government are at a lower price than sales to private hospitals. Selling activities continue to promote use in surgery when suitable blood is not readily available, medically is not an option or is unacceptable and blood avoidance is requested. The South Africa marketing experience continues to give the company important commercial, clinical and marketing experience.

Compassionate Use

The company recently submitted a draft clinical study protocol to the FDA for compassionate use of Hemopure in the United States for the treatment of life-threatening or potentially life threatening anemia where red blood cell transfusion is not an option. As mentioned previously in a letter to shareholders, this is a first step in attempting to formalize the compassionate use of Hemopure without requiring the filing of an IND
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SOURCE Biopure Corporation
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