Mera Pharmaceuticals Continues Financial Improvement During First Quarter, Revenues Increase 47%

Mera Pharmaceuticals Continues Financial Improvement During First Quarter,
Revenues Increase 47% 


SAN DIEGO, March 16  /PRNewswire-FirstCall/ -- Mera Pharmaceuticals has
announced results for the first quarter of its fiscal year 2004 on form 10-QSB,
filed today with the Securities and Exchange Commission.  The results showed
strong improvement, continuing a positive trend that the company began about a
year ago.

Mera's revenues increased by 47%, rising to $268,000 compared to $182,000 for
the same quarter a year ago.  Also contributing to the overall improvement in
financial performance was a 45% decline in expenses, led by a decrease in
general and administrative expenses from $544,000 to just $222,000, a drop of
nearly 60%.  Mera's operating loss and net loss both declined a hefty 70%, the
former from $666,000 in the first quarter of 2003 to just 198,000 this year, the
latter to $188,000 compared with $628,000.

Dan Beharry, Mera's chief executive, described the results as "very encouraging.
We were pleased by the magnitude of the improvement that we achieved last
quarter, which was larger than expected.  Our efforts during the past year to
improve the company's fundamentals are clearly paying off. Expenses are under
control and revenues continue to grow.  While the company can only be truly
pleased once it achieves profitability, the progress we have made over the last
four quarters shows that we are headed in that direction.

"Our strengthened cash position will allow us to continue our progress by taking
advantage of what we believe will be a significant expansion in the market for
astaxanthin, our principal product, including sales under the AstaFactor(R)
brand.   We have developed a number of strategies for boosting AstaFactor(R)
sales, and we will begin implementing them over the next few months. We will
also launch a new AstaFactor(R) product near the end of April that should
further increase revenues on high margin retail sales.  The positive impact from
those initiatives should start to show up this spring. That will provide further
financial stability for the company."

Mera has plans to increase capacity for astaxanthin production at its Hawaiian
research, development and production facility, in part through improving
efficiencies and in part through capital spending.  The result will be a
decrease in unit production costs, which will help improve margins.  As a sign
of its upbeat outlook, Mera has recently increased the size of its Hawaii-based
workforce, and efforts are underway to hire additional personnel. According to
the company, the decision to hire was based on Mera's improving financial
performance and its expectation of an increase in demand for its products.

Mera Pharmaceuticals, Inc., based in Kona, Hawaii, is focused on identifying and
producing valuable products from the rich, untapped resource of microbial
aquatic plants.  Long recognized for their potential medical and nutritional
value, these plants have been largely ignored because of the virtual
impossibility of growing them at commercial scale.  Mera has overcome that
obstacle through application of its patented photobioreactor technology, which
allows Mera to produce a large number of species at scale reliably, efficiently
and at high quality.  Mera's first nutraceutical product, the AstaFactor(R), is
a concentrated source of natural astaxanthin, found in a number of fish and
seafood species.  Astaxanthin is known to be an effective anti-inflammatory and
an extremely powerful antioxidant.

This press release contains forward-looking statements characterized by the use
of words such as "believe," "expect," "anticipate," "feel" and similar
expressions.  Actual results might differ materially from those projected in,
expressed in or impliedby the forward-looking statements.  The kinds of risks
and uncertainties that could affect the future operating results of Mera
include, without limitation:  (i) the ability to attract new business for its
existing products; (ii) the ability to identify new products and bring them to
market; (iii) the ability to identify promising pharmaceutical candidates and,
if they are identified, the ability to have them successfully complete the
clinical trial process;  (iv) the sensitivity of Mera to general economic
conditions; (v) the inability to attract the additional investment needed to
plans regarding the drug discovery and development business.  Additional
information concerning risk factors that could cause actual results to differ
materially from those described in forward looking statements can be found in
Mera's SEC filings, including its Annual Report on Form 10-KSB and other
periodic reports that it files under the Securities Exchange Act of 1934, as
amended.

   Contact Info:   Gregory F. Kowal
                   Chairman of the Board
                   900 Fort Street Mall
                   Honolulu, HI  96813
                   Phone:  [phone]
                   Fax:    [phone]


DATASOURCE: Mera Pharmaceuticals, Inc.



CONTACT:  Gregory F. Kowal, Chairman of the Board, of Mera

Pharmaceuticals, Inc., [phone], or Fax, [phone]



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

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