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Star Scientific, Inc. Files Second-Quarter Financial Report (Net Sales and Gross Profits Continue to Increase) and Updates Research and Marketing Activities
Date:8/9/2012

ed with a net loss of ($11.1) million for the same period in 2011.  The increase in net loss was attributable, in part, to increased marketing and advertising costs of approximately $1.3 million related to the expanded distribution and consumer awareness of Anatabloc®, as well as to increased research costs of $1.0 million in connection with clinical(human) trials and pre-clinical(non-human) studies relating to Anatabloc®, and to the development of the Anatabloc® face cream.

The Company also has completed an interim look at the ASAP Thyroid Study that began in April 2012, which examines the effects of nutritional supplementation with an Anatabloc® formulation for Hashimoto's thyroiditis.  Paul L. Perito, Chairman, President, and COO of Star Scientific, said, "The ASAP thyroid double-blind, randomized, placebo controlled, twelve week study has reached the point where we were able to take an interim look as allowed by the protocol.  I am very grateful that the medical/scientific team, in approximately five months, has established nine separate sites, recruited and enrolled 124 subjects, and secured sufficient summary data whereby the scientific committee determined to continue and complete the study.  I am encouraged by the preliminary data and look forward to definitive findings after 120 subjects have all completed the study." Later this summer, the Company plans to report interim results of the CRP/Cardiac Flint Study analyzing the impact of anatabine on C-reactive protein ("CRP") levels. CRP is a molecule produced by the liver in response to an inflammatory signal, and is a marker for inflammation. Mr. Perito further commented, "We are enthusiastic about our many exciting projects, which we believe have significant fiscal potential, including our anticipated launch of the Anatabloc® face cream during the third quarter."

David Dean, Vice President for Sales and Marketing, commented, "We continue to be very
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SOURCE Star Scientific, Inc.
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