Human Pheromone Sciences Announces Quarterly and Full Year Results

SAN JOSE, Calif., March 31, 2008  /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, 2007. For the three months ended December 31, 2007, net revenue was $389,000, representing a 6% decrease from revenues of $412,000 in the prior year period, and resulted in net income of $38,000 ($.01 per share) as compared with a net income of $66,000 ($.02 per share) for the same period of 2006. For the full year, net revenues of $1,291,000, were 5% higher than revenues of $1,227,000 generated in the prior year. The net loss in the current year of $16,000 ($.00 per share) was a reduction from the $111,000 loss ($.03 per share) recorded for the full year of 2006.

"In the third and fourth quarters of 2006, we had very large orders from our largest purchaser of pheromones that were not replicated in the current year quarters.  As such, for the full year, revenue from pheromone sales were $207,000 (24%) lower than in 2007, while revenues attributable to licensing activities rose by $344,000 (188%) from the prior year.  The growth in total revenues in the current year is attributable to the licensing activities. Lower operating expenses, coupled with the revenue growth, gave rise to the improved bottom line in the current year," a spokesperson indicated.

"These cyclical pheromone purchases are unpredictable and, as such, we developed a set of strategic imperatives to grow our licensing revenues, to formulate a program to maximize revenues from our proprietary Natural Attractions(R) brand and to 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 noted.  "While we are not pleased by the financial results for the current year fourth 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 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, 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)

                                            December 31, December 31,
                                                2007        2006

  Assets

  Cash and cash equivalents                    $1,437       $1,941
  Accounts receivable                             194           39
  Inventories, net                                 25           75
  Other current assets                             40           18
  Property and equipment, net                       3            2

  Total                                        $1,699       $2,075


  Liabilities and Shareholders' Equity

  Accounts payable                                $28          $30
  Other current liabilities                       141          114
  Deferred income - current                       518          846
  Deferred income - non-current                   566          721
  Common stock                                 20,963       20,865
  Accumulated deficit                         (20,517)     (20,501)

  Total                                        $1,699       $2,075



                      HUMAN PHEROMONE SCIENCES, INC.
                    Condensed Statements of Operations

              (Dollars in thousands, except per-share data)


                                    Three months              Year
                                  ended December 31,     ended December 31,
                                   2007     2006          2007      2006

  Net revenues                     $389      $412        $1,291    $1,227

  Cost of goods sold                 99       108           376       287
  Research and development           11        14            49       102
  Selling, general and
   administrative                   256       235           942       969

  Income (loss) from operations      23        55           (76)     (131)

  Other income                       15        18            65        27

  Income (loss) before provision
   for income taxes                  38        73           (11)     (104)

  Provision for Income taxes          -         7             5         7

  Net income (loss)                 $38       $66          $(16)    $(111)



      Net income (loss)
       per share -

           Basic                  $0.01     $0.02        $(0.00)   $(0.03)
           Fully diluted          $0.01     $0.01        $(0.00)   $(0.03)


      Weighted average number
       of shares -

           Basic                  4,152     4,152         4,152     4,152
           Fully diluted          4,852     4,782         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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