NTII Neurobiological Technologies (MM)

Dutton Associates updates its coverage of Neurobiological Technologies (Nasdaq: NTII) maintaining a Strong Speculative Buy rating and a 12-month target price of $8. The 11-page report by Dutton senior analyst William R. Prather, R.Ph., M.D. is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. We believe Neurobiological Technologies, Inc.'s previously announced departure of the Company�s CFO and the announced restatement of its financial statements for fiscal 2005 and the first three quarters of fiscal 2006 has put pressure on the Company�s common stock. If speculative, risk tolerant investors believe, as we do, that Viprinex� will achieve success in its clinical trials for the indication of ischemic stroke, then the weakness in the value of this Company has provided an excellent opportunity for these investors to accumulate shares. However, we want to emphasize that we believe the relative success or failure of an investment in NTI rests on the results of the Viprinex trials with some protection on the downside being afforded by the growing royalty revenue from Memantine. At Neurobiological Technologies' current market value, we believe the upside of an investment in the Company outweighs the potential downside from negative results from the Viprinex trials. If Viprinex�s clinical trials are successful, we believe an eventual market capitalization for Neurobiological Technologies in the $0.5 billion range is reasonable. We are reiterating our investment rating on the shares of the Company as a Strong Speculative Buy with a 12-month price target of $8.00. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $71,000 from the Company for 12 Research Reports with coverage commencing on 5/13/02. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing. Dutton Associates updates its coverage of Neurobiological Technologies (Nasdaq: NTII) maintaining a Strong Speculative Buy rating and a 12-month target price of $8. The 11-page report by Dutton senior analyst William R. Prather, R.Ph., M.D. is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals. We believe Neurobiological Technologies, Inc.'s previously announced departure of the Company's CFO and the announced restatement of its financial statements for fiscal 2005 and the first three quarters of fiscal 2006 has put pressure on the Company's common stock. If speculative, risk tolerant investors believe, as we do, that Viprinex(TM) will achieve success in its clinical trials for the indication of ischemic stroke, then the weakness in the value of this Company has provided an excellent opportunity for these investors to accumulate shares. However, we want to emphasize that we believe the relative success or failure of an investment in NTI rests on the results of the Viprinex trials with some protection on the downside being afforded by the growing royalty revenue from Memantine. At Neurobiological Technologies' current market value, we believe the upside of an investment in the Company outweighs the potential downside from negative results from the Viprinex trials. If Viprinex's clinical trials are successful, we believe an eventual market capitalization for Neurobiological Technologies in the $0.5 billion range is reasonable. We are reiterating our investment rating on the shares of the Company as a Strong Speculative Buy with a 12-month price target of $8.00. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs and have expertise in many industries. Dutton & Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $71,000 from the Company for 12 Research Reports with coverage commencing on 5/13/02. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.