Human Pheromone Sciences Announces Quarterly and Full Year Results

(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., [phone]



Web site:  http://www.erox.com/

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