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Nastech Announces Third Quarter 2007 Financial Results
Date:10/29/2007

September 30, September 30,

2006 2007 2006 2007

(Unaudited)

Revenue

License and research fees $ 5,130 $ 1,792 $ 22,667 $ 11,197

Government grants 383 105 383 307

Product revenue 32 -- 624 245

Total revenue 5,545 1,897 23,674 11,749

Operating expenses:

Cost of product revenue 13 -- 314 68

Research and development 10,483 13,774 31,050 39,412

Selling, general and

administrative 3,447 5,090 10,529 14,490

Total operating expenses 13,943 18,864 41,893 53,970

Loss from operations (8,398) (16,967) (18,219) (42,221)

Other income (expense):

Interest income 751 817 2,107 2,722

Interest and other expense (161) (300) (394) (858)

Loss before cumulative effect of (7,808) (16,450) (16,506) (40,357)

change in accounting principle

Cumulative effect of change in

accounting principle -- -- 291 --

Net Loss $(7,808) $(16,450) $(16,215) $(40,357)

Basic and diluted net loss per

share:

Prior to cumulative effect of

change in accounting

principle $ (0.36) $ (0.66) $ (0.78) $ (1.62)

Cumulative effect of change in

accounting principle -- -- 0.01 --

Net loss per common share -

basic and diluted $ (0.36) $ (0.66) $ (0.77) $ (1.62)

Shares used in computing net

loss per share - basic and

diluted
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SOURCE Nastech Pharmaceutical Company Inc.
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