SAN JOSE, Calif., Aug. 15 /PRNewswire-FirstCall/ -- Human Pheromone Sciences, Inc. (OTC:EROX) (BULLETIN BOARD: EROX) ("HPS" or "the Company") today announced results for the second quarter ended June 30, 2005. Net sales from on-going operations of $131,000, represented a 12% decrease from the sales of $149,000 in the prior year period, and resulted in a net loss $248,000 ($.06 per share) as compared with a net loss of $274,000 ($.07 per share) for the same period of 2004. For the six months ended June 30, 2005, net revenues were $257,000, a 37% decrease from the revenues of $408,000 in the prior year period, and resulted in a net loss of $529,000 ($.13 per share) as compared with a net loss of $362,000 ($.09 per share) for the same period of 2004. "The lower revenues in the second quarter of the current year was a result of the inclusion in the 2004 quarter the initial shipments of the Company's Natural Attraction(R) from Demeter products. Sales from the Company's core business -- its pheromone licensing -- increased approximately 57% in the current year's second quarter. In order to bolster sales of the Company's Natural Attraction(R) line of pheromone based products the Company has recently undertaken a project to redesign the product's electronic marketing program and the institution of a creative campaign to attract more consumers to a newly-developed website in the third or fourth quarter of this year. Despite increased expenses for the redevelopment of the website and product line, selling, general and administrative expenses declined in the quarter by 18% from $388,000 last year to $319,000 in the current year's quarter. As evidenced by the increase in research and development expenses in the current quarter, the Company also noted that it continues to invest in near term growth -- with new product development programs and increased laboratory testing on male and female volunteers with a series of compounds that have shown promising results during the current quarter. Human Pheromone Sciences, Inc. is a technology-based company that develops and markets mood enhancing compounds for use in consumer products. The Company's proof-of concept products included prestige-priced fragrances and toiletries and consumer products sold under the Natural Attraction(R), REALM(R), innerREALM(R) and EROX(R) trademarks. The Company also licenses its proprietary technology to other companies for inclusion in their products for direct sale to the consumer. These products contain human pheromones, the use of which is covered under United States and foreign patents. 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, 2004 as filed with the Securities and Exchange Commission and the Form 10QSB for the three months ended March 31, 2005. 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 (Unaudited) (Dollars in thousands) June 30, December 31, 2005 2004 Assets Cash and cash equivalents $ 803 $ 1,201 Accounts receivable, net 81 259 Inventories, net 57 63 Other current assets 35 8 Property and equipment, net 13 17 Total $ 989 $ 1,548 Liabilities, convertible redeemable preferred stock and shareholders' deficit Accounts payable $ 38 $ 41 Other current liabilities 127 154 Common stock 20,809 20,809 Accumulated deficit (19,985) (19,456) Total $ 989 $ 1,548 HUMAN PHEROMONE SCIENCES, INC. Condensed Statements of Operations (Unaudited) (Dollars in thousands, except per-share data) Three months Six months ended June 30, ended June 30, 2005 2004 2005 2004 Net sales and revenues $131 $149 $257 $408 Cost of goods sold 17 33 58 73 Research and development 48 7 94 16 Selling, general and administrative 319 388 645 689 (Loss) from operations (253) (279) (540) (370) Other income 5 4 11 7 (Loss) from on-going operations (248) (275) (529) (363) Net gain on sale of assets -- 1 -- 1 Net income (loss) $ (248) $(274) $(529) $ (362) Earnings (loss) per share - Basic and fully diluted: $ (0.06) $(0 .07) $(0.13) $(0.09) Weighted average number of shares - Basic and fully diluted: 4,152 4,106 4,152 4,105 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, or Gregory Fredrick, Chief Financial Officer, +1-408-938-3030, both of Human Pheromone Sciences, Inc. Web site: http://www.erox.com/

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