EMERYVILLE, Calif., Feb. 12 /PRNewswire-FirstCall/ -- Neurobiological Technologies, Inc. (NTI(R)) (Nasdaq: NTII) today announced financial results for the three-month and six-month periods ended December 31, 2008.

Revenues for the second quarter of fiscal 2009 were $3.5 million compared to $3.7 million for the second quarter of fiscal 2008. Research and development expenses were $10.4 million for the three months ended December 31, 2008 compared to $7.4 million for the three months ended December 31, 2007. General and administrative expenses were $1.2 million for the three months ended December 31, 2008 compared to $1.9 million for the three months ended December 31, 2007.

The net loss for the second quarter of fiscal 2009 was $7.8 million, or $0.29 per share, compared to a net loss of $6.9 million, or $0.36 per share, for the second quarter of fiscal 2008.

Revenues for the first six months of fiscal 2009 were $7.1 million compared to revenues of $7.6 million for the same period of fiscal 2008. Research and development expenses were $15.8 million for the six months ended December 31, 2008 compared to $12.9 million for the six months ended December 31, 2007. General and administrative expenses were $2.5 million for the six months ended December 31, 2008 compared to $3.6 million for the six months ended December 31, 2007. The net loss for the six months ended December 31, 2008 was $10.6 million, or $0.39 per share, compared to a net loss of $7.8 million, or $0.65 per share, for the six-months ended December 31, 2007.

Cash, cash equivalents and investments were $32.2 million at December 31, 2008. The cash and total investments balance included cash and equivalents of $6.9 million, short term investments of $16.4 million and auction-rate securities carried at an estimated fair value of $8.9 million and classified as long-term investments. Total liabilities, excluding deferred revenue of $16.0 million, were $8.5 million at December 31, 2008.

About Neurobiological Technologies, Inc.

Neurobiological Technologies, Inc. is a biopharmaceutical company historically focused on developing novel, first-in-class agents for central nervous system conditions and other serious unmet medical needs. The company recently terminated development of its most advanced product candidate, Viprinex(TM) (ancrod), which was studied in Phase 3 clinical trials for evaluation as a new drug to treat acute ischemic stroke. NTI has an early-stage development program for Alzheimer's disease and rights to receive payments on an approved drug for Alzheimer's disease and an investigational drug which has recently completed a Phase 3 trial for brain swelling.

NOTE: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve risks and uncertainties, including risks relating to our terminated clinical trials and our continuing contractual commitments, and levels of future operations and expenditures, as well as other risks detailed from time to time in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Actual results may differ materially from those projected. These forward-looking statements represent our judgment as of the date of the release and we undertake no obligation to update these forward-looking statements.





                         CONDENSED STATEMENTS OF OPERATIONS
               (Unaudited - in thousands, except per share amounts)


                                    Three months ended   Six months ended
                                        December 31,        December 31,
                                      2008      2007      2008      2007


     REVENUES
         Royalty                     $2,007    $2,103    $4,085    $4,084
         Technology sale and
          collaboration services      1,484     1,560     2,971     3,479

     Total revenues                   3,491     3,663     7,056     7,563

     EXPENSES
         Research and development    10,392     7,416    15,844    12,877
         General and administrative   1,201     1,912     2,532     3,571

             Total expenses          11,593     9,328    18,376    16,448

     Operating loss                  (8,102)   (5,665)  (11,320)   (8,885)
     Interest income                    264       452       513       479
     Gain on sale of long-term
      investment                          -         -       170         -
     Interest expense, including
      non-cash amortization of
      $1,748 and $2,336 discount
      on notes for the three and
      six months ended December
      31, 2007, respectively              -    (1,847)        -    (2,478)
     Non-cash gain on change in
      fair value of warrants              -       177        37     3,079

     NET LOSS                       $(7,838)  $(6,883) $(10,600)  $(7,805)

    BASIC AND DILUTED NET LOSS
      PER SHARE                      $(0.29)   $(0.36)   $(0.39)   $(0.65)

     Shares used in basic and
      diluted net loss per share
      calculation                    26,924    19,313    26,924    12,042








                           SELECTED BALANCE SHEET DATA
                                 (in thousands)

                                         December 31,  June 30,
                                            2008         2008
                                         (unaudited)   (Note 1)

      Cash and cash equivalents            $6,914       $27,941
      Short-term investments               16,400         2,039
      Long-term investments                 8,876        11,850
      Total assets                         32,884        43,187
      Current liabilities                  14,032         9,042
      Total liabilities                    24,574        22,901
      Stockholders' equity                  8,310        20,286

      (1) Derived from audited financial statements.

SOURCE Neurobiological Technologies, Inc.