IMAXRX THERAPEUTICS HAS 2ND QTR 2007 NET LOSS OF $1.5 MIL.

ImaRx Therapeutics, Inc. (NASDAQ:IMRX), Tucson, Ariz. has reported financial results for the quarter and six months ended June 30, 2007, and provided a business update. Revenue for the second quarter ended June 30, 2007 was approximately $2.2 million, compared to approximately $0.3 million for the second quarter of 2006. Revenue for the six months ended June 30, 2007 was approximately $3.4 million, compared to approximately $0.4 million for the six months ended June 30, 2006. The increase in revenues for each of the periods was primarily the result of the commencement of sales of Abbokinase which accounted for approximately $2.0 million of revenue in the second quarter.

Net loss for the second quarter of 2007 was approximately $1.5 million as compared to a net loss of approximately $4.1 million for the second quarter 2006. Net loss per share attributable to common stockholders, which includes the non-cash charges for accretion of preferred stock dividends, was a loss of $0.74 per share and $1.62 per share for the three months ended June 30, 2007 and 2006, respectively, based on weighted average shares of 2,606,019 and 2,600,275, respectively. The net loss for the six months ended June 30, 2007 was $3.9 million as compared to $7.4 million for the prior year period. Net loss per share attributable to common stockholders, which includes the non-cash charges for accretion of preferred stock dividends, was a loss of $1.82 per share and $2.98 per share for the six months ended June 30, 2007 and 2006, respectively, based on weighted average shares of 2,605,968 and 2,592,836, respectively. The weighted average shares used in computing loss per share attributable to common shareholders excludes anti-dilutive securities such as stock options and warrants and also redeemable preferred stock in periods prior to their conversion to common stock upon completion of the company's initial public offering.

Cost of product sales was approximately $1.0 million in the second quarter of 2007, and approximately $1.4 million for the six month period ended June 30, 2007. There were no cost of product sales for the second quarter of 2006 or for the six month period ended June 30, 2006, as the company acquired the commercial product in April 2006 and commenced sales in October 2006. The cost of product sales includes the price paid to acquire the asset as well as labeling costs that are directly incurred in bringing the product to market.

Research and development expenses for the second quarter of 2007 decreased to approximately $1.6 million, from approximately $2.3 million for the three months ended June 30, 2006. Research and development expenses for the first six months of 2007 decreased to $3.1 million, from $4.1 million for the first six months of 2006. This decrease was principally a result of decreased staff and consulting expenses, as well as decreased outside contract work performed on grants and pre-clinical studies, partially offset by increased clinical trial expenses.

General and administrative expenses in the second quarter of 2007 decreased to approximately $1.2 million, from approximately $1.7 million in the second quarter of 2006, principally as a result of decreased staff expenses. General and administrative expenses in the first six months of 2007 were approximately $2.6 million, a decrease from approximately $3.4 million for the first six months of 2006. This decrease was principally a result of reduced staffing expenses and lower SFAS 123R compensation expense.

The company ended the second quarter of 2007 with approximately $6.6 million in cash, cash equivalents and investments, not including approximately $4.4 million in restricted cash, compared to approximately $4.3 million in cash, cash equivalents and investments at December 31, 2006. The increase in the company's cash balance was driven primarily by the sale of approximately $9.0 million of Abbokinase, net of discounts and fees, to two of its primary wholesalers. The company's June 30, 2007 cash balance does not include the $12.3 million net proceeds from the sale of shares of its common stock in connection with its initial public offering in July 2007.

Recent Corporate Highlights

Completed an initial public offering of 3 million shares of common stock at $5 per share, resulting in net proceeds to the company of $12.3 million.

Received approval from the Data & Safety Monitoring Board to proceed with the second dose cohort in the multinational Phase I/II TUCSON dose escalation clinical trial, evaluating SonolysisTM+tPA therapy in patients with acute ischemic stroke.

Awarded an approximately $0.9 million National Institutes of Health grant to study Targeted Blood Brain Barrier Permeability Changes with Ultrasound & Microbubbles over two years.

Signed a Cross License Agreement with Bracco Imaging S.p.A with respect to certain patents relating to the use of microbubbles and ultrasound for diagnostic and therapeutic applications.

About ImaRx Therapeutics

ImaRx Therapeutics is a biopharmaceutical company developing and commercializing therapies for vascular disorders. The company's research and development efforts are focused on therapies for stroke and other vascular disorders using its proprietary microbubble technology. ImaRx Therapeutics' commercialization efforts are currently focused on its product, Abbokinase, for the treatment of acute massive pulmonary embolism.

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