Human Pheromone Sciences Announces First Quarter Results SAN JOSE, Calif., May 16 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC:EROX) (BULLETIN BOARD: EROX) ("HPS" or "the Company") today announced results for the first quarter ended March 31, 2005. Net sales from on-going operations of $126,000, represented a 51% decrease from the sales of $259,000 in the prior year period, and resulted in a net loss $281,000 ($.07 per share) as compared with a net loss of $88,000 ($.02 per share) for the same period of 2004. At March 31, 2005, the Company reflected cash balances of $1,095,000 as compared with $1,201,000 at December 31, 2004, representing a net $106,000 cash outflow during the three months. There was no bank indebtedness outstanding at either date. "The first quarter sales decline resulted from a large volume of orders that were received the fourth quarter 2004 that the Company had historically received and shipped in the first quarter of each year. In order to bolster sales of the Company's Natural Attraction(R) line of pheromone based products the Company has recently undertaken a project to redesign the product's electronic marketing program and the institution of a creative campaign to attract more customers to a newly-developed website in the third quarter of this year. Sales in the international markets increased 93% and represented 63% of the Company's current year revenues in the quarter," a spokesperson indicated. The Company also noted that it continues to invest in the future -- with new product development programs, the expanded electronic marketing for its Natural Attraction brand, and increased laboratory testing on male and female volunteers with a series of compounds that have shown promising early results in current human studies. "We have once again seen extensive validation of our research on our patented human pheromone technology by independent scientists at leading institutions around the world. Headlines this week regarding our pheromones, Androstadienone and Estratetraenol, have validated that we are indeed the industry leader in human pheromone technology." The Company spokesman was referring to the study conducted at the prestigious Karolinska Institute, indicating that the two leading compounds for which the Company has use patents elicit different responses in heterosexual men and women as compared to homosexual men. The spokesman continued, "these findings were first reported by our scientists, and we are indeed honored to have their work independently verified by such a highly regarded institution. We will continue to invest in the development of new compounds that we have already identified, reproduced and are currently being tested in our laboratories." Human Pheromone Sciences, Inc. is a technology-based company, which develops and markets mood enhancing compounds for use in consumer products. The Company's proof-of concept products included prestige-priced fragrances and toiletries and consumer products sold under the Natural Attraction(R), REALM(R), innerREALM(R) and EROX(R) trademarks. The Company also licenses its proprietary technology to other companies for inclusion in their products for direct sale to the consumer. These products contain human pheromones, the use of which is covered under United States and foreign patents. 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 (Unaudited) (Dollars in thousands) March 31, December 31, 2005 2004 Assets Cash and cash equivalents $1,095 $1,201 Accounts receivable, net 72 259 Inventories 68 63 Other current assets 34 8 Property and equipment, net 15 17 Total $1,284 $1,548 Liabilities and shareholders' deficit Accounts payable $75 $41 Other current liabilities 137 154 Common stock 20,809 20,809 Accumulated deficit (19,737) (19,456) Total $1,284 $1,548 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Unaudited) (Dollars in thousands, except per-share data) Three months ended March 31, 2005 2004 Net sales and revenues $126 $259 Cost of goods sold 41 40 Research and development 46 9 Selling, general and administrative 326 301 Loss from operations (287) (91) Other income 6 3 Net loss $(281) $(88) Earnings (loss) per share, basic and fully diluted: $(0.07) $(0.02) Weighted average number of shares outstanding - Basic and fully diluted 4,152 4,105 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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