Human Pheromone Sciences Announces Quarterly and Full Year Results (Continuing operations revenue grows and loss declines) SAN JOSE, Calif., March 30 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC:EROX) (BULLETIN BOARD: EROX) ("HPS" or "the Company") today announced results for the three months and the year ended December 31, 2004. For the three months ended December 31, 2004, net sales from on-going operations were $432,000, representing a 208% increase from sales of $140,000 in the prior year period, and resulted in a loss from on-going operations of $76,000 ($.02 per share) as compared with a loss from on-going operations of $171,000 ($.04 per share) for the same period of 2003, a 56% improvement. For the full year, net sales from on-going operations of $1,140,000, represented a 76% increase from the sales of $646,000 in the prior year period, and resulted in a loss from continuing operations of $570,000 ($.14 per share) as compared with a loss from continuing operations of $577,000 ($.15 per share) for the same period of 2003. "The growth in revenues for both the quarter and the full year from the 2003 periods reflects significant increases in sales of our mood enhancing compounds to current licensees in both periods and the addition of the Natural Attraction from Demeter Fragrance Library product line sales that were launched in April 2004. In both periods, research and development costs increased due to the funding of studies on several new naturally-occurring compounds that the Company believes may be incorporated in future products. The increase in selling, marketing and administrative costs were primarily associated with the launch of the Natural Attraction from Demeter line as well as new initiatives implemented to enhance shareholder value," a Company spokesperson indicated. Human Pheromone Sciences, Inc. is a technology-based company, whose proof- of concept products included prestige-priced fragrances and toiletries and environmental products sold under the Natural Attraction(R), REALM(R), innerREALM(R) and EROX(R) trademarks. These products contain mood- enhancing synthesized human pheromones covered under U.S. and foreign patents. The Company also licenses its proprietary technology to other companies for inclusion in their products for direct sale to the consumer. Scientific and consumer studies have shown that the Company's human pheromones positively impact on the moods, attitudes and emotions of wearers. Further information is available on line at http://www.erox.com/. The statements in this news release may contain forward-looking statements that involve risks and uncertainties that could cause results to differ from predicted results. Further information on factors that could affect the Company's results is detailed in the Company's annual report to shareholders on Form 10-KSB for the year ended December 31, 2004 as filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. HUMAN PHEROMONE SCIENCES, INC. Condensed Balance Sheets (Dollars in thousands) December 31, December 31, 2004 2003 Assets Cash and cash equivalents $1,201 $1,950 Accounts receivable, net 259 38 Inventories 63 52 Other current assets 8 19 Property and equipment, net 17 9 Total $1,548 $2,068 Liabilities, convertible redeemable preferred stock and shareholders' equity Accounts payable $41 $23 Other current liabilities 154 150 Convertible redeemable preferred stock -- 150 Common stock 20,809 20,659 Accumulated deficit (19,456) (18,914) Total $1,548 $2,068 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Dollars in thousands, except per-share data) Three months ended Year ended December 31, December 31, 2004 2003 2004 2003 Net sales and revenues $432 $140 $1,140 $646 Cost of goods sold 98 20 215 177 Research and development 50 10 93 28 Selling, general and administrative 366 256 1,419 1,059 (Loss) from operations (82) (146) (587) (618) Other income 6 (46) 17 (14) Tax benefit from ongoing operations -- 21 -- 55 (Loss) from continuing operations (76) (171) (570) (577) Net income (loss) from operations sold -- (5) -- 74 Net gain (loss) on sale of assets 6 (48) 28 1,170 Net income (loss) $(70) $(224) $(542) $667 Basic earnings (loss) per share: From on-going operations $(0.02) $(0.04) $(0.14) $(0.15) From disposed operations $(0.00) $0.00 $0.00 $0.02 From assets sold $(0.00) $(0.02) $0.01 $0.31 Net income (loss) $(0.02) $(0.06) $(0.13) $0.18 Diluted earnings (loss) per share: From on-going operations $(0.02) $(0.04) $(0.14) $(0.13) From disposed operations $(0.00) $0.00 $0.00 $0.02 From assets sold $0.00 $0.02 $0.01 $0.26 Net income (loss) $(0.02) $(0.06) $(0.15) $0.15 Weighted average number of shares outstanding - Basic 4,152 4,058 4,129 3,803 Weighted average number of shares outstanding - Assuming dilution 4,152 4,058 4,129 4,588 Net income (loss) per share is based on the weighted average number of common shares and common equivalents outstanding during each period. Certain common stock equivalents are excluded when their effect would be anti-dilutive. DATASOURCE: Human Pheromone Sciences, Inc. CONTACT: William P. Horgan, Chairman, CEO of Human Pheromone Sciences, Inc., +1-408-938-3030 Web site: http://www.erox.com/

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