Hollis-Eden Pharmaceuticals Inc. Announces Second Quarter 2006 Financial Results

Hollis-Eden Pharmaceuticals, Inc. (NASDAQ:HEPH) today announced financial results for the second quarter of 2006. For the quarter ended June 30, 2006, the Company reported a net loss of $8.1 million (or $0.33 per share), compared to a net loss of $6.6 million (or $0.33 per share) in the second quarter of 2005. For the six months ended June 30, 2006, Hollis-Eden reported a net loss of $15.0 million (or $0.62 per share), compared to a net loss of $13.4 million (or $0.68 per share) in the first six months of 2005. Included in the net loss for the second quarter and first half of 2006 was $1.0 million and $2.3 million, respectively, of stock-based compensation expense related to the adoption of SFAS No.

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