Pressure BioSciences, Inc. Reports Second Quarter 2007 Financial Results and Provides Business Update

WEST BRIDGEWATER, Mass., Aug. 14 /PRNewswire-FirstCall/ -- Pressure BioSciences, Inc. (Nasdaq: PBIO) today announced that total revenue for the quarter ended June 30, 2007 was $202,127 as compared to $28,783 for the same period in 2006. Revenue from the sale of PCT products and services was $136,355 for the three months ended June 30, 2007 as compared to $28,783 for the same period in the prior year. This increase in revenue from PCT products and services was the result of the sale of four Barocycler NEP3229 PCT Sample Preparation Systems in the second quarter of 2007 versus one in the second quarter of 2006. Also contributing to this increase in revenue was an increase in the number of PULSE Tubes that were sold, revenue from Barocycler NEP3229 instruments under lease, and the recognition of extended service contract revenue. In addition to revenue received from the sale of PCT products and services, the Company also recorded $65,772 of grant revenue during the second quarter of 2007. The majority of this revenue was billed pursuant to the Company's SBIR Phase 1 grant for the development of novel protein extraction methods based on the Company's patented pressure cycling technology (PCT). During the same period in 2006, the Company did not record any grant revenue.

The Company reported total revenue of $333,748 for the six months ended June 30, 2007 as compared to $82,197 for the six months ended June 30, 2006. Revenue from the sale of PCT products and services was $174,297 for the six months ended June 30, 2007 as compared to $82,197 for the same period in the prior year. This increase in revenue from PCT products and services was primarily the result of the sale of five Barocycler NEP3229 PCT Sample Preparation Systems in the first half of 2007 versus two in the first half of 2006. Also contributing to this increase in revenue was an increase in the number of PULSE Tubes that were sold, revenue from Barocycler instruments under lease, and the recognition of extended service contract revenue. In addition to revenue received from the sale of PCT products and services, the Company also recorded $159,451 of grant revenue during the first half of 2007. The majority of this revenue was billed pursuant to the Company's SBIR Phase 1 grant for the development of novel protein extraction methods based on the Company's patented pressure cycling technology (PCT). During the same period in 2006, the Company did not record any grant revenue.

As of June 30, 2007, the Company had cash and cash equivalents of approximately $6.8 million, as compared to approximately $5.3 million on December 31, 2006. Edward H. Myles, Senior Vice President of Finance and CFO, commented: "During the second quarter of 2007, we completed two transactions that strengthened our balance sheet, namely: (1) the liquidation of all our remaining shares in Panacos Pharmaceuticals common stock, and (2) the full divestiture of Source Scientific, LLC. These transactions resulted in the receipt of approximately $3.0 million of cash during the quarter. This cash will be used to support a number of important Company activities, including various research and development programs and our previously announced PCT product line commercialization plan."

Richard T. Schumacher, Founder, President, and CEO of Pressure BioSciences, Inc. said: "In addition to improving our balance sheet through the Source and Panacos transactions, other notable achievements of our second quarter included: (1) record revenue driven by the sale of four PCT Sample Preparation Systems; (2) the release of the Barocycler NEP2320 as both a demonstration unit and commercial product; (3) approval to CE Mark the Barocycler NEP3229; (4) the development of a novel, potentially revolutionary method for the safe, rapid, efficient, and reproducible extraction of proteins from lipid-rich samples, and the filing of a U.S. patent application related to this discovery; (5) the launch of our first PCT-dependent research-use-only kit (ProteoSolve(LRS)); and (6) progress on the development of our external sales force. These are important achievements that we believe will help drive the acceptance of PCT in many areas of the life sciences. To that end, we look forward to the second half of 2007 with an expectation that we will continue to be successful in both the commercialization of our PCT product line, and in the overall growth of our Company."

About Pressure BioSciences, Inc.

Pressure BioSciences, Inc. (PBI) is a publicly traded company focused on the development of a novel, enabling technology called pressure cycling technology (PCT). PCT uses cycles of hydrostatic pressure between ambient and ultra-high levels (up to 35,000 psi and greater) to control bio-molecular interactions. PBI currently holds 13 US and 5 foreign patents covering multiple applications of PCT in the life sciences field, including in such areas as genomic and proteomic sample preparation, pathogen inactivation, the control of enzymes, immunodiagnostics, and protein purification.

Forward Looking Statements

Statements contained in this press release regarding the Company's intentions, hopes, beliefs, expectations, or predictions of the future are "forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based upon the Company's current expectations, forecasts, and assumptions that are subject to risks, uncertainties, and other factors that could cause actual outcomes and results to differ materially from those indicated by these forward-looking statements. These risks, uncertainties, and other factors include, but are not limited to: possible difficulties or delays in the implementation of the Company's strategies that may adversely affect the Company's continued commercialization of its PCT Sample Preparation System; the Company's financial results for the three and six months ended June 30, 2007 may not necessarily be indicative of future results as future revenues may not meet expectations due to the possible failure of the Company's products to achieve commercial acceptance, changes in customers needs and technological innovations, and expenses that may be higher than anticipated due to unforeseen cost increases; if the Company's expenses are higher than anticipated or if the Company's revenues do not increase, the Company may not have sufficient cash to support its planned activities and the Company may be unable to obtain financing on acceptable terms; the Company may not be successful in developing its external sales force; the new PCT-dependent method of protein extraction from lipid-rich samples may not offer any advantages over current methods of protein extraction and may not be adopted by the scientific community; the Company's new ProteoSolve kit may not achieve commercial acceptance; and the Company may be unable to develop new PCT-related products that achieve commercial acceptance. Additional risks and uncertainties that could cause actual results to differ materially from those indicated by these forward-looking statements are discussed under the heading "Risk Factors" in the Company's Quarterly Report on Form 10-QSB for the quarter ended June 30, 2007, in the Company's Annual Report on Form 10-KSB for the year ended December 31, 2006, and other reports filed by the Company from time to time with the SEC. The Company undertakes no obligation to update any of the information included in this release, except as otherwise required by law.

    Visit us at our website http://www.pressurebiosciences.com

    Investor Contacts:
    Richard T. Schumacher, President & CEO
    Edward H. Myles, Senior Vice President of Finance & CFO
    PressureBioSciences, Inc.
    (T) 508-580-1818



                    Consolidated Statements of Operations
                                 (UNAUDITED)

                                          For the Three        For the Six
                                          Months Ended         Months Ended
                                            June 30,             June 30,
                                        2007       2006       2007        2006

    REVENUE:
      PCT Products, services, other $136,355    $28,783   $174,297     $82,197
      Grant revenue                   65,772          -    159,451           -
        Total revenue                202,127     28,783    333,748      82,197

    COSTS AND EXPENSES:
      Cost of PCT products and
       services                       57,629     47,104     89,282      98,650
      Research and development       538,015    401,500    999,547     660,319

      Selling and marketing          350,823    128,005    607,354     195,384

      General and administrative     624,462    595,481  1,105,544   1,285,107

        Total operating costs and
         expenses                  1,570,929  1,172,090  2,801,727   2,239,460

        Operating loss from
         continuing operations    (1,368,802)(1,143,307)(2,467,979) (2,157,263)

    OTHER INCOME:
      Realized gain on securities
       available for sale          1,301,247          -  2,028,720     517,938
      Interest income                 80,482    109,287    152,084     217,792

        Total other income         1,381,729    109,287  2,180,804     735,730
        Income (loss) from
         continuing operations
         before income taxes          12,927 (1,034,020)  (287,175) (1,421,533)
        Income tax benefit from
         continuing operations         3,516    219,759     44,035     297,237
        Income (loss) from
         continuing operations        16,443   (814,261)  (243,140) (1,124,296)

    DISCONTINUED OPERATIONS:
      Gain on sale of net assets
       related to discontinued
       operations (net of income
       tax of $218,060)            1,534,476          -  1,155,973           -
      Net Income (loss)           $1,550,919 $ (814,261)  $912,833 $(1,124,296)

      Income (loss) per share
       from continuing operations
       - basic                        $ 0.01     $(0.34)    $(0.12)     $(0.46)
      Income per share from
       discontinued operations
       - basic                          0.74          -       0.56           -
      Net income (loss) per share
       - basic                        $ 0.75     $(0.34)    $ 0.44      $(0.46)

      Income (loss) per share from
       continuing operations
       - diluted                      $ 0.01     $(0.34)    $(0.12)     $(0.46)
      Income per share from
       discontinued operations
       - diluted                        0.67          -       0.56           -
      Net income (loss) per share
       - diluted                      $ 0.68     $(0.34)    $ 0.44      $(0.46)

      Weighted average number of
       shares used to calculate
       income (loss) per share
       - basic                     2,065,425  2,426,167  2,065,425   2,425,183

      Weighted average number of
       shares used to calculate
       income (loss) per share
       - diluted                   2,296,930  2,426,167  2,065,425   2,425,183



                         Consolidated Balance Sheets
                                 (UNAUDITED)
                                                   June 30,      December 31,
         ASSETS                                      2007           2006

    CURRENT ASSETS
      Cash and cash equivalents                   $6,803,674    $ 5,335,282
      Accounts receivable                             75,647         37,495
      Inventories                                    238,831         19,658
      Prepaid income taxes                            56,863         38,687
      Income tax receivable                          723,802        710,013
      Prepaid expenses, deposits, and other
       current assets                                326,264        246,776
      Investments in marketable securities                 -      2,060,875

      Total current assets                         8,225,081      8,448,786

    PROPERTY AND EQUIPMENT, NET                      241,286        207,696

    OTHER ASSETS
      Intangible assets, net                         352,606        376,922
      Assets held for sale                                 -      1,420,996
      Total other assets                             352,606      1,797,918

      TOTAL ASSETS                                $8,818,973    $10,454,400

        LIABILITIES AND STOCKHOLDERS' EQUITY

    CURRENT LIABILITIES
      Accounts payable                              $351,055       $174,289
      Accrued employee compensation                  263,712        242,497
      Other accrued expenses                         148,270        150,978
      Income taxes payable                            43,339         45,962
      Deferred taxes                                 186,010        669,520
      Deferred revenue                                18,823          4,099

      Total current liabilities                    1,011,209      1,287,345

    LONG TERM LIABILITIES
      Deferred revenue                                11,778          9,126
      Liabilities held for sale                            -      1,042,493
      Total long term liabilities                     11,778      1,051,619

      TOTAL LIABILITIES                            1,022,987      2,338,964

    COMMITMENTS (Note 7)

    STOCKHOLDERS' EQUITY
      Common stock, $.01 par value; 20,000,000
       shares authorized; 2,065,425 shares issued
       and outstanding                                20,654         20,654
      Additional paid-in capital                   5,500,234      5,347,641
      Accumulated other comprehensive income               -      1,384,876
      Retained earnings                            2,275,098      1,362,265

      Total stockholders' equity                   7,795,986      8,115,436

      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $8,818,973    $10,454,400

SOURCE Pressure BioSciences, Inc.