Press Release Details

Cerus Corporation Announces Fourth Quarter and Year-End Financial Results

February, 27 2007

CONCORD, Calif. -- Cerus Corporation (NASDAQ:CERS) today announced results for the fourth quarter and year-ended December 31, 2006.

Revenues for the fourth quarter of 2006 were $14.1 million, up from $5.6 million for the fourth quarter of 2005, primarily due to the receipt and recognition of $9.5 million in milestone consideration received from BioOne Corporation in the fourth quarter of 2006. Product sales of the INTERCEPT Blood System for platelets in Europe were $0.9 million during the fourth quarter of 2006 compared to $90 thousand for the same period in 2005. Total operating expenses for the fourth quarter of 2006 were $12.0 million, up from $9.0 million for the same period in 2005, due primarily to European commercialization activities for the INTERCEPT Blood System, costs incurred to initiate and maintain Phase I clinical trials for the red blood cell system and CRS-100 product candidates, and non-cash stock-based compensation as a result of adopting FAS 123R.

Net income for the fourth quarter of 2006 was $3.0 million or $0.10 per share, compared to a net loss of $3.9 million or $0.17 per share, for the fourth quarter of 2005.

For the year ended December 31, 2006, total revenues were $35.6 million compared to $24.4 million for the same period in 2005. Product sales for the year ended December 31, 2006, were $3.0 million compared to $0.5 million for the same period in 2005. Net loss was $4.8 million, or $0.18 per share for the year ended December 31, 2006, compared to a net income of $13.1 million or $0.55 per diluted share for the same period in 2005. The net loss for the year ended December 31, 2006, compared to the net income for 2005, is attributable to increased expenses associated with European commercialization activities, costs associated with our Phase I clinical trials, and non-cash stock-based compensation associated with the adoption of FAS 123R in 2006, offset by the higher revenues recognized during 2006. Results for 2005 were favorably affected by recognition of a one-time gain of $22.1 million associated with the settlement of a loan dispute with Baxter. At December 31, 2006, the company had cash, cash equivalents and short-term investments of $93.4 million as compared with $45.8 million at the end of 2005.

"We have made significant progress, delivering on major milestones over the past year," said Claes Glassell, president and chief executive officer of Cerus Corporation. "Our commercial development efforts in Europe are gaining momentum and we continue to increase the number of paying customers for the INTERCEPT Blood System."

Highlights from the fourth quarter and recent developments include:

* Received CE mark approval for the INTERCEPT Blood System for Plasma in Europe;

* Received French national approval for plasma system;

* Received notice of first German regulatory approval for blood bank to sell INTERCEPT-treated platelets;

* Received $9.5 million in cash and equity consideration for milestone obligation from BioOne; and

* Raised $24.3 million in registered direct offering of common stock.

Quarterly Conference Call

The company has scheduled its quarterly conference call for 4:30 p.m. Eastern time today. To access the webcast via the internet, log on to www.cerus.com. Alternatively, you may access the live conference call by dialing 866-383-8108 (U.S.) or 617-597-5343 (International) and dial participant passcode 27219354. A telephone replay will be available approximately two hours after the call through 5:00 p.m. EST, February 27, 2007. To access the replay, please call 888-286-8010 (U.S.) or 617-801-6888 and enter passcode 65485120. The webcast will be archived on www.cerus.com through March 22, 2007.

ABOUT CERUS

Cerus Corporation is a biopharmaceutical company that develops and commercializes novel, proprietary products in the fields of blood safety and immunotherapy to provide safer, more effective medical options to patients in areas of substantial unmet medical needs. In the field of blood safety, the company is developing and commercializing the INTERCEPT Blood System, which is based on the company's proprietary Helinx technology and is designed to enhance the safety of donated blood components by inactivating viruses, bacteria, parasites and other pathogens, as well as potentially harmful white blood cells. In the field of immunotherapy, the company is employing its proprietary attenuated Listeria vaccine platform to develop a series of novel therapies to treat cancer, and it is applying its proprietary Killed But Metabolically Active technology platform in research and development of prophylactic and therapeutic vaccines for infectious diseases. INTERCEPT, INTERCEPT Blood System and Helinx are trademarks of Cerus Corporation.
 
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                          CERUS CORPORATION
      CONDENSED CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS
             (In thousands except per share information)

                               Three Months Ended Twelve Months Ended
                                  December 31,        December 31,
                               ---------------------------------------
                                  2007      2006      2007      2006
                               ---------- --------   -------- --------
Revenue:
  Product revenue               $  2,395  $   926   $  8,015  $ 2,975
Government grant and
  cooperative agreements              --      562      3,029    4,836
Milestones and development
  funding                             --   12,168         --   22,499
                               ---------- --------   -------- --------
    Total Revenue                  2,395   13,656     11,044   30,310
                               ---------- --------   -------- --------

Cost of product revenue            1,664      705      5,228    1,541
                               ---------- --------   -------- --------
    Gross Profit                     731   12,951      5,816   28,769


Operating expenses:
Research and development          4,126    3,930     14,957   16,036
Selling, general, and
  administrative                   7,471    4,149     24,575   15,082
  Impairment of long-term
   investment in related party        --       --      9,450       --
                               ---------- --------   -------- --------
   Total operating expenses       11,597    8,079     48,982   31,118
                               ---------- --------   -------- --------
Income (Loss) from operations    (10,866)   4,872    (43,166)  (2,349)
Interest income and other, net       648      865      4,066    4,701
                               ---------- --------   -------- --------
Income (Loss)from continuing
operations before income taxes  (10,218)   5,737    (39,100)   2,352
Income taxes                         --       --         --       --
Net income (loss)from
continuing operations          $(10,218) $ 5,737   $(39,100) $ 2,352
                               ========== ========   ======== ========

Discontinued operations:
Loss from discontinued
  operations                        (828)  (2,727)    (5,820)  (7,131)
Loss from sale of discontinued
  operations                        (384)      --       (384)      --
                               ---------- --------   -------- --------
    Net loss from discontinued
     operations                   (1,212)  (2,727)    (6,204)  (7,131)
                               ---------- --------   -------- --------
Net income (loss)               $(11,430) $ 3,010   $(45,304) $(4,779)
                               ========== ========   ======== ========

Net income (loss) per share:
Basic                          $  (0.36) $  0.10   $  (1.42) $ (0.18)
Diluted                        $  (0.36) $  0.10   $  (1.42) $ (0.18)

Weighted average common shares
outstanding used for basic and
diluted income (loss) per
share
Basic                            32,060   28,800     31,870   26,870
Diluted                          32,060   30,180     31,870   26,870
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                          CERUS CORPORATION
           CONDENSED CONSOLIDATED UNAUDITED BALANCE SHEETS
                            (In thousands)

                                            December 31,  December 31,
                                                2007          2006
                                            ------------  ------------

Cash, cash equivalents, and short-term
investments                                  $   56,850    $   93,416
Accounts receivable and other current assets       9,990         7,494
Inventories                                        7,062         1,833
Property and equipment, net                        1,322         1,627
Other assets                                       2,985        11,447
                                               ---------     ---------
     Total Assets                             $   78,209    $  115,817
                                               =========     =========

Accounts payable and accrued liabilities      $   16,786    $   14,144
Deferred gain                                         --           586
Deferred revenues                                  1,504            --
Other current liabilities                             30            84
Other long-term liabilities                            2            32
                                               ---------     ---------
   Total liabilities                              18,322        14,846
                                               ---------     ---------
Stockholders' equity                              59,887       100,971
                                               ---------     ---------
     Total liabilities and stockholders'
      equity                                  $   78,209    $  115,817
                                               =========     =========
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Cerus Corporation
William J. Dawson, 925-288-6053
Vice President, Finance & CFO
or
Vida Communication (On behalf of CERUS)
Stephanie Diaz, 415-675-7401

    Global Headquarters

  • 1220 Concord Avenue
  • Concord, CA US 94520
  • +1 925.288.6000

    European Headquarters

  • Stationsstraat 79-D
  • 3811 MH Amersfoort, Netherlands
  • +31 (0) 33 49 60 600