Compugen Ltd (CGEN)

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Compugen Reports Second Quarter 2005 Financial Results
Wednesday July 27, 7:00 am ET


TEL AVIV, Israel--(BUSINESS WIRE)--July 27, 2005--Compugen Ltd. (Nasdaq:CGEN - News) today reported financial results for the second quarter ended June 30, 2005.

"For almost a decade, we have focused our efforts on building a unique and continuously improving discovery capability," stated Mor Amitai, Ph.D., Compugen's President and Chief Executive Officer. "During this period of time, it has been very difficult for others to assess either our degree of success or the commercial potential provided by these efforts. Therefore, we were very pleased to announce last month two pipeline agreements with major diagnostic companies for the development and commercialization of multiple products based on Compugen discoveries, bringing to three such milestone and royalty bearing agreements that have been signed in the last ten months," Dr. Amitai concluded.

Revenues and governmental and other grants for the second quarter of 2005 were $474,000 (including $404,000 from governmental and other grants), compared to $984,000 (including $277,000 from governmental and other grants) for the second quarter of 2004. The net loss for the quarter was $3.3 million (including a non-cash income of $9,000 for amortization of deferred compensation), or $0.12 per share, compared with a net loss of $3.4 million (including a non-cash expense of $131,000 for amortization of deferred compensation), or $0.12 per share, for the corresponding quarter of 2004.

Revenues and governmental and other grants for the six months ended June 30, 2005 were $1.3 million (including $788,000 from governmental and other grants), compared to $2.5 million for the same period in 2004 (including $678,000 from governmental and other grants). The net loss for the first six months of 2005 was $7.1 million (including a non-cash income of $19,000 for amortization of deferred compensation), or $0.25 per share, compared with a net loss of $6.4 million (including a non-cash expense of $369,000 for amortization of deferred compensation), or $0.23 per share, for the same period in 2004.

As of June 30, 2005, Compugen had $41.0 million in cash, cash equivalents, and marketable securities, a decrease of $2.5 million from March 31, 2005.

Conference Call and Web Cast Information

Compugen will hold a conference call to discuss its second quarter results on July 27, 2005 at 10:00 AM EST. To access the conference call, please dial 1-866-860-9642 from the US or [phone] internationally. A replay of the conference call will also be available approximately two hours after the completion of the live conference call. To access the replay, please dial 1-866-276-1485 from the US or [phone]. The replay will be available until 12 noon EST on July 29, 2005.

The call will also be available via live Web cast through Compugen's Website, located at www.cgen.com.

About Compugen

Compugen is a drug and diagnostic discovery company incorporating ideas and methods from mathematics, computer science, and physics into biology, chemistry, and medicine. The Company's powerful predictive models and discovery engines are both advancing the understanding of important biological phenomena and enabling the discovery of numerous potential therapeutic products and diagnostic markers. The Company has an early stage in-house pipeline consisting of selected therapeutic protein candidates discovered by the Company; additional discoveries have been out-licensed for development. Among Compugen's customers and partners are leading pharmaceutical and diagnostic companies, such as Abbott Laboratories, Diagnostic Products Corporation, Novartis, and Pfizer. Compugen has established a small-molecule drug discovery affiliate - Keddem Bioscience, and an agricultural biotechnology affiliate - Evogene. For additional information, please visit Compugen's corporate Website at www.cgen.com.


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