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MIGENIX Reports First Quarter Fiscal Year 2008 Financial Results
Date:9/11/2007

$0.4 million increase in these unallocated research and development costs is spread out across personnel costs (increased headcount initiated last year, particularly with respect to non-clinical work in the celgosivir program), patent costs (advancement of MX-3253 patent applications) and other costs (higher level of activity in both the MX-3253 and MX-2401 programs).

We anticipate that we will make determinations as to which programs to pursue and how much funding to direct to each program on an ongoing basis. We are currently focusing our resources on advancing the development of our non-partnered programs: celgosivir and MX-2401.

General and Corporate Expenses

General and corporate expenses in Q1/08 were $1.0 million (Q1/07: $0.8 million). Personnel costs were $0.5 million in Q1/08 (Q1/07: $0.5 million). The approximate $0.2 million increase in general and corporate costs in Q1/08 compared with Q1/07 is principally due to: (i) contract personnel in the Finance department engaged for internal controls, implementation of new accounting software and year end work; and (ii) greater legal and accounting costs.

Amortization

Amortization expense for equipment was approximately $0.1 million for Q1/08 (Q1/07: $0.1 million).

Amortization expense for intangible assets was approximately $0.1 million for Q1/08 (Q1/07: $0.2 million).

Other Income and Expenses

Interest income was $0.1 million for Q1/08 (Q1/07: $0.1 million).

Accretion expense related to the convertible royalty participation units for Q1/08 was $0.4 million (Q1/07: $0.3 million). This accretion expense is a non-cash expense resulting from accreting the liability component of the convertible royalty participation units to the maximum royalties payable of $29.5 million (will be reduced for actual royalties paid, any units converted into common shares and should the estimate of royalties payable decline below $29.5 million) over the estimated royalty payment te
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SOURCE MIGENIX Inc.
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