Initiatives to Expand Business Potential Achieve Milestones in Quarter SAN JOSE, Calif., Nov. 13 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC:EROX) (BULLETIN BOARD: EROX) ("HPS" or "the Company") today announced results for the third quarter ended September 30, 2007. Net revenues of $239,000 compared with $365,000 in the prior year period resulted in a net loss of $93,000 ($.02 per share) as compared with a net income of $49,000 ($.01 per share) for the same period of 2006. For the nine month period in 2007 net revenues grew by 11% to $902,000 from $815,000, and the net loss for the first nine months of 2007 was $54,000 ($.01 per share), a $123,000 (70%) improvement from the 2006 net loss of $177,000 ($.04 per share) incurred in the first nine months of the prior year. At September 30, 2007, basic liquidity (cash plus accounts receivable, less accounts payable and accrued expenses) was $1,455,000 as compared with $1,836,000 at December 31, 2006, reflecting net spending of $381,000 for the nine months of the current year. "In the third and fourth quarters of 2006, we had sizable orders from our largest purchaser of pheromones and we do not expect comparable orders in the current year. These cyclical purchases are unpredictable and, as such, we developed a set of strategic imperatives to grow our licensing revenues (which were up by more than 175% in the current year's quarter), formulate a program to maximize revenues from our proprietary Natural Attractions(R) brand and complete human testing on additional novel compounds that can contribute to the expansion of our business through the scientific validation of additional technologies that will enhance the value of our Company," a spokesman indicated. During the third quarter of the current year, the Company received its first royalty payment from a licensing pact, signed earlier in the year with a major International corporation for our original compounds, signed an agreement to update, repackage and reposition the Company's proprietary Natural Attraction(R) line of products and filed a patent application for an exciting new compound that has shown significant potential in human studies. "While we are not pleased by the financial results for the current quarter as compared with the prior year three month period, we believe that focus on these three strategic imperatives will lessen our dependence on the purchasing pattern of one large customer, and ensure balanced growth in revenue and an expanded technology and customer base, without major capital investment," the spokesman further noted. 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 compounds, whose efficacy has been validated at leading universities around the world, and whose use is covered under United States and foreign patents. The Company is also involved in research and product development efforts on new compounds that have been previously identified as stimulating the emotional centers of the human brain. 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, and Form 10-QSB for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007, 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) September 30, December 31, 2007 2006 (Unaudited) Assets Cash and cash equivalents $1,550 $1,941 Accounts receivable 60 39 Inventories, net 76 75 Other current assets 35 18 Property and equipment, net 1 2 Total assets $1,722 $2,075 Liabilities and shareholders' equity Accounts payable $48 $30 Other current liabilities 107 114 Deferred revenue - current 508 846 Deferred revenue - non-current 681 721 Common stock 20,933 20,865 Accumulated deficit (20,555) (20,501) Total liabilities and shareholders' equity $1,722 $2,075 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Unaudited) (Dollars in thousands, except per-share data) Three months Nine months ended September 30, ended September 30, 2007 2006 2007 2006 Net revenues $239 $365 $902 $815 Cost of goods sold 94 68 277 179 Research and development 10 29 38 88 Selling, general and administrative 240 227 686 734 Income (loss) from operations (105) 41 (99) (186) Other income 16 8 50 9 Provision for income taxes 4 - 5 - Net income (loss) $(93) $49 $(54) $(177) Income (loss) per share, basic: $(0.02) $0.01 $(0.01) $(0.04) Income (loss) per share, fully diluted: $(0.02) $0.01 $(0.01) $(0.04) Weighted average common shares outstanding- Basic 4,152 4,152 4,152 4,152 Weighted average common shares outstanding- Fully diluted 4,152 4,841 4,152 4,152 Net income (loss) per share is based on the weighted average number of common shares and common share 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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