Human Pheromone Sciences Announces Third Quarter Results (Continuing Operations Revenue Increases 38% and Loss Declines 51%) SAN JOSE, Calif., Nov. 13 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (BULLETIN BOARD: EROX) ("HPS" or "the Company") today announced results for the third quarter ended September 30, 2003. As a result of the April 14, 2003 sale of its REALM(R) and innerREALM(R) trademarks and related assets, the reported financial data for the current year include information for both the on-going business and for the assets being sold. The prior year financial data have been restated to conform to the current year financial presentation. Net sales from on-going operations of $227,000, represented a 38% increase from the restated sales of $165,000 in the prior year period, and resulted in a loss from on-going operations of $108,000 ($.03 per share) as compared with a loss from on-going operations of $222,000 ($.07 per share) for the same period of 2002. For the nine months ended September 30, 2003, net sales from on-going operations were $506,000, representing an 11% increase from the restated sales of $456,000 in the prior year period, and resulted in a loss from on-going operations of $406,000 ($.11 per share) as compared with a loss from on-going operations of $653,000 ($.19 per share) for the same period of 2002. For the quarter ended September 30, 2003, there was no net income from assets sold ($.00 per share), as compared with $134,000 income ($.04 per share) generated by this sector of the business in the third quarter of 2002. The net gain on the sale of the REALM and innerREALM assets for the nine-month period of the current year was $1,218,000. For the nine- month period, net income from disposed assets was $79,000 in the current year as compared with $481,000 in the prior year nine months. "The sale of the REALM and innerREALM business earlier this year provided HPS with the additional financial resources to expand business development efforts and establish an internal research and development program. Business development has been active during the past quarter and dedicated research and development efforts will be expanded in the final quarter of the year. It is gratifying to see another quarterly increase in revenues from continuing operations and a concurrent decrease in the net loss emanating from our on- going business, the Company indicated. We are pleased with the continued growth of our Natural Attraction(R) product line and the expansion of private label opportunities for our patented technology," the Company spokesman 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 REALM(R), innerREALM(R), EROX(R) and Natural Attraction(R) trademarks. These initial products contain mood- enhancing compounds covered under U.S. and foreign patents. Scientific and consumer studies have shown that the Company's patented technology positively impact on the moods, attitudes and emotions of consumers. Further information is available on line at http://www.naturalattraction.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, 2002 and quarterly report on Form 10-QSB for the quarter and nine months ended September 30, 2003, 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) September 30, December 31, 2003 2002 Assets Cash and cash equivalents $1,860 $1,394 Accounts receivable, net 250 249 Inventories 68 151 Assets to be sold -- 493 Other current assets 46 10 Property and equipment, net 9 5 Product licenses 50 50 Total $2,283 $2,352 Liabilities, convertible redeemable preferred stock and shareholders' deficit Accounts payable $ 39 $ 186 Liabilities associated with assets to be Sold -- 330 Other current liabilities 133 110 Convertible redeemable preferred stock 150 3,706 Common stock 20,717 17,667 Accumulated deficit (18,756) (19,581) Foreign currency translation -- (66) Total $2,283 $2,352 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Unaudited) (Dollars in thousands, except per-share data) Three months ended Nine months ended September 30, September 30, 2003 2002 2003 2002 Net sales and revenues $227 $165 $506 $456 Cost of goods sold 73 54 157 135 Research and development 11 80 18 242 Selling, general and administrative 276 270 803 759 (Loss) from operations (133) (239) (472) (680) Other income 24 17 32 27 Tax benefit from ongoing operations 1 -- 34 -- (Loss) from continuing operations (108) (222) (406) (653) Net income from disposed operations -- 134 79 481 Net gain (loss) on sale of assets (8) -- 1,218 -- Net income (loss) $(116) $(88) $891 $(172) Basic earnings (loss) per share: From on-going operations $(0.03) $(0.07) $(0.11) $(0.19) From disposed operations $(0.00) $0.04 $0.02 $0.14 From assets to be sold $0.00 $0.00 $0.33 $0.00 Net income (loss) $(0.03) $(0.03) $0.24 $ (0.05) Diluted earnings (loss) per share: From on-going operations $(0.03) $(0.07) $ (0.09) $(0.19) From disposed operations $(0.00) $0.04 $0.02 $0.14 From assets to be sold $0.00 $0.00 $0.26 $0.00 Net income (loss) $(0.03) $(0.03) $0.19 $ (0.05) Weighted average number of shares outstanding - Basic 4,028 3,430 3,717 3,430 Weighted average number of shares outstanding - Assuming dilution 4,028 3,430 4,731 3,430 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.realmfragrances.com/

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