Compugen Ltd (CGEN)

[midastouch017]

Compugen Reports Third Quarter 2005 Financial Results
Wednesday November 2, 7:00 am ET
Alex Kotzer Assumes President and CEO Position

TEL AVIV, Israel--(BUSINESS WIRE)--Nov. 2, 2005--Compugen Ltd. (NASDAQ: CGEN - News) today reported financial results for the third quarter ended September 30, 2005. As previously announced, effective September 1, 2005, Alex Kotzer assumed the position of President and Chief Executive Officer.

"I am delighted to join Compugen at this point in time as the company focuses on developing and commercializing its many potential biomarkers and therapeutic proteins. These potential products are resulting from our pioneering research efforts in predictable methods of discovery," stated Mr. Kotzer.

Martin Gerstel, Compugen's Chairman added, "Alex brings to Compugen many years of relevant experience and a proven track record in managing biotech operations in his previous positions at Serono and InterPharm. His background makes him ideal to lead Compugen as we move forward with the development and commercialization of our diagnostic and therapeutic product candidates as well as to continue to advance our predictive research capabilities and the unique discovery engines based on these capabilities."

Revenues and governmental and other grants for the third quarter of 2005 were $761,000 (including $666,000 from governmental and other grants), compared to $971,000 (including $326,000 from governmental and other grants) for the third quarter of 2004. The net loss for the quarter was $3.6 million (including a non-cash expense of $332,000 for amortization of deferred compensation), or $0.13 per share, compared with a net loss of $3.6 million (including a non-cash expense of $231,000 for amortization of deferred compensation), or $0.13 per share, for the corresponding quarter of 2004.

Revenues and governmental and other grants for the nine months ended September 30, 2005 were $2.1 million (including $1.5 million from governmental and other grants), compared to $3.5 million for the same period in 2004 (including $1 million from governmental and other grants). The net loss for the first nine months of 2005 was $10.6 million (including a non-cash expense of $313,000 for amortization of deferred compensation), or $0.38 per share, compared with a net loss of $10.0 million (including a non-cash expense of $600,000 for amortization of deferred compensation), or $0.36 per share, for the same period in 2004.

As of September 30, 2005, Compugen had $38 million in cash, cash equivalents, and marketable securities, a decrease of $3 million from June 30, 2005.

Conference Call and Web Cast Information

Compugen will hold a conference call to discuss its third quarter results on November 2nd, 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 November 4th, 2005.

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

http://biz.yahoo.com/bw/051102/25460.html?.v=1

Dubi