(Revenue growth in both periods results in net income for quarter and 88% loss reduction for full year) SAN JOSE, Calif., March 28 /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, 2006. For the three months ended December 31, 2006, net revenue was $412,000, representing more than a five-fold increase from revenues of $66,000 in the prior year period, and resulted in net income of $66,000 ($.02 per share) as compared with a net loss of $207,000 ($.05 per share) for the same period of 2005. For the full year, net revenues of $1,227,000, were approximately three times higher than the revenue of $414,000 in the prior year. The net loss in the current year of $111,000 ($.03 per share) was a significant reduction from the $934,000 loss ($.22 per share) recorded in the full year of 2005. Excluding deferred revenue, the Company's current ratio improved to 14.4 as compared with 3.9 at December 31, 2005, with cash increasing to $1,941,000 from $452,000 at prior year end. The growth of revenue in both the fourth quarter and the full year was attributable to significant increases in pheromone purchases by our largest customer (more than 500% for the quarter and 300% for the full year) and revenues resulting from a licensing agreement signed in the third quarter of 2006. In addition, international revenues for the full year more than doubled as a result of higher sales to existing customers and additional markets opened during the year. Increased gross profit associated with the revenue jump in the quarter gave rise to a net income of $66,000 in the period as compared with a loss of more than $200,000 in the prior year period. For the full year, increased gross profit, coupled with more than a 15% drop in total operating expenses resulted in the loss being reduced to $111,000 from more than $900,000 in 2005. "Obviously, we are pleased by the continued growth in existing markets, new licensees and new interest being shown in our patented technology," 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 REALM(R), innerREALM(R) and EROX(R) trademarks. These products, and its Natural Attraction(R) product line, 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, 2006 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, 2006 2005 Assets Cash and cash equivalents $1,941 $452 Accounts receivable 39 11 Inventories, net 75 70 Other current assets 18 18 Property and equipment, net 2 8 Total $2,075 $559 Liabilities and shareholders' equity Accounts payable $30 $21 Other current liabilities 114 119 Deferred income - current 846 - Deferred income - non-current 721 - Common stock 20,865 20,809 Accumulated deficit (20,501) (20,390) Total $2,075 $559 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Dollars in thousands, except per-share data) Three months Year ended December 31, ended December 31, 2006 2005 2006 2005 Net revenues $412 $66 $1,227 $414 Cost of goods sold 108 18 287 88 Research and development 14 32 102 164 Selling, general and administrative 235 226 969 1,113 Income (loss) from operations 55 (210) (131) (951) Other income 18 3 27 17 Income (loss) before provision for income taxes 73 (207) (104) (934) Provision for Income taxes 7 - 7 - Net income (loss) $66 $(207) $(111) $(934) Net income (loss) per share - Basic $0.02 $(0.05) $(0.03) $(0.22) Fully diluted $0.01 $(0.05) $(0.03) $(0.22) Weighted average number of shares - Basic 4,152 4,152 4,152 4,152 Fully diluted 4,782 4,152 4,152 4,152 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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