Human Pheromone Sciences Announces Full Year Results (Continuing Operations Revenue Grows and Loss Declines) SAN JOSE, Calif., March 30 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (BULLETIN BOARD: EROX) ("HPS" or "the Company") today announced results for the year ended December 31, 2003 and the fourth quarter ended the same day. 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 sold. The prior year financial data have been restated to conform to the current year financial presentation. For the full year, net sales from on-going operations of $646,000, represented a 17% increase from the restated sales of $554,000 in the prior year period, and resulted in a loss from on-going operations of $577,000 ($.15 per share) as compared with a loss from on-going operations of $934,000 ($.27 per share) for the same period of 2002, a 38% reduction. Net income for the full year was $667,000 ($0.18 per share) as compared with a net loss of $213,000 ($0.06 per share) for the twelve months ended December 31, 2002, a result of the reduced loss from continuing operationsand the net gain from the sale of the REALM assets. For the three months ended December 31, 2003, net sales from on-going operations were $140,000, representing a 43% increase from the restated sales of $98,000 in the prior year period, and resulted ina loss from on-going operations of $171,000 ($.04 per share) as compared with a loss from on-going operations of $281,000 ($.08 per share) for the same period of 2002, a 39% decrease. For the quarter ended December 31, 2003, there was a net loss from assets sold of $53,000 ($.02 per share), as compared with a net income of 240,000 ($.07 per share) generated by this sector of the business in the fourth quarter of 2002. At December 31, 2003, the Company had cash balances of $1,950,000, a 40% increase from December 31, 2002; In addition, the Company had no outstanding bank borrowing, and a current ratio of 11.9 as compared to 6.6 at December 31, 2002. "The sale of the REALM and innerREALM business earlier this year provided HPS with the additionalfinancial resources to expand business development efforts and establish an internal research and development program. As part of this program, the Company signed an agreement with Demeter F.L., Inc. for the joint development and marketing a new line of fragrance and toiletry products under both the Company's Natural Attraction(R) trademark and the Demeter trademark. The initial products in the Natural Attraction from Demeter lines will be introduced in April 2004 in all Sephora stores in the United States. Business development continued to be active during the past quarter and dedicated research and development efforts should commence in the second quarter of this 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," a 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 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.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, 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) Dec. 31, Dec. 31, 2003 2002 Assets Cash and cash equivalents $1,950 $1,394 Accounts receivable, net 38 249 Inventories 52 146 Assets to be sold -- 168 Other current assets 19 10 Property and equipment, net 9 5 Product licenses 50 Total $2,068 $2,022 Liabilities, convertible redeemable preferred stock and shareholders' equity (deficit) Accounts payable $23 $186 Other current liabilities 150 110 Convertible redeemable preferred stock 150 3,706 Common stock 20,659 17,667 Accumulated deficit (18,914) (19,581) Foreign currency translation -- (66) Total $2,068 $2,022 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Unaudited) (Dollars in thousands, except per-share data) Three months Year ended December 31, ended December 31, 2003 2002 2003 2002 Net sales and revenues $140 $98 $646 $554 Cost of goods sold 20 32 177 167 Research and development 10 54 28 296 Selling, general and administrative 256 297 1,059 1,056 (Loss) from operations (146) (285) (618) (965) Other income (expense) (46) (6) (14) 21 Tax benefit from ongoing operations 21 10 55 10 (Loss) from on-going operations (171) (281) (577) (934) Net income (loss) operations sold (5) 240 74 721 Net gain (loss) from sale of assets (48) -- 1,170 -- Net income (loss) $(224) $(41) $667 $(213) Basic earnings (loss) per share: From on-going operations $(0.04) $(0.08) $(0.15) $(0.27) From operations sold $(0.00) $0.07 $0.02 $0.21 From assets sold $(0.02) $0.00 $0.31 $0.00 Net income (loss) $(0.06) $(0.01) $0.18 $(0.06) Diluted earnings (loss) per share: From on-going operations $(0.04) $(0.08) $(0.13) $(0.27) From operations sold $(0.00) $0.07 $0.02 $0.21 From assets sold $(0.02) $0.00 $0.26 $0.00 Net income (loss) $(0.06) $(0.01) $0.15 $(0.06) Weighted average number of shares outstanding -- Basic 4,059 3,430 3,803 3,430 Weighted average number of shares outstanding -- Assuming dilution 4,059 3,430 4,588 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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