MII Microislet

Microislet Reports First Quarter Financial Results SAN DIEGO, May 17 /PRNewswire-FirstCall/ -- MicroIslet Inc. (AMEX:MII) today announced financial results for the first quarter ended March 31, 2005. The Company reported a net loss of $2,000,243, or $0.05 per share, for the quarter ended March 31, 2005, compared with a net loss of $1,234,638, or $0.04 per share, for the same period in 2004. Weighted-average common shares outstanding for the quarters ended March 31, 2005 and March 31, 2004 were 39.7 million and 31.6 million, respectively. Total operating expenses were $2,041,678 and $1,241,166 for the quarters ended March 31, 2005 and 2004, respectively. General and administrative expenses increased to $637,881 in the 2005 period from $594,069 in the same quarter in 2004 primarily due to higher legal and personnel expenses offset by a decrease in investor relations expenses. Research and development expenses increased to $1,403,797 in the first quarter of 2005 from $647,097 in the same quarter in 2004, mainly due to higher levels of spending for lab personnel, our partnership with the Mayo Foundation, and materials and services relating to testing of our technology in animals. The Company reported ending the quarter with $6.8 million in cash. About MicroIslet MicroIslet is a biotechnology company engaged in the research, development, and commercialization of patented technologies in the field of transplantation therapy for people with insulin-dependent diabetes. MicroIslet's patented islet transplantation technology, exclusively licensed from Duke University, includes methods for isolating, culturing, cryopreservation, and immuno-protection (microencapsulation) of islet cells. MicroIslet is working to develop and commercialize a first product, called MicroIslet-PTM, a microencapsulated porcine islet cell suspension that will be used for transplantation in patients with insulin-dependent diabetes. Except for the historical information contained herein, the matters set forth in this press release, including the expectation of development of new therapeutic products, and the impact of MicroIslet's products on diabetes patients, are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including the risks and uncertainties inherent in medical treatment discovery, development and commercialization, the risks and uncertainties associated with MicroIslet's early stage xenotransplantation technologies, the risks and uncertainties of governmental approvals and regulation, MicroIslet's need to raise substantial additional capital to proceed through human clinical trials and bring any product to market, the risks that MicroIslet's competitors will develop or market technologies or products that are more effective or commercially attractive than MicroIslet's products, and other risks detailed from time to time in MicroIslet's most recent filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. MicroIslet disclaims any intent or obligation to update these forward-looking statements. For more information, please visit our Web site at http://www.microislet.com/. For further information, please contact: William G. Kachioff, Vice President, Finance and Chief Financial Officer of MicroIslet, Inc., +1-858-657-0287, . MicroIslet, Inc. (A Development Stage Company) Consolidated Balance Sheets (unaudited) March 31, December 31, 2005 2004 Assets Current Assets: Cash and cash equivalents $6,787,765 $8,777,364 Prepaid expenses 237,828 223,284 Total current assets 7,025,593 9,000,648 Equipment, net 223,427 203,018 Patents, net 10,930 11,048 Deposits and other assets 56,814 57,602 Total assets $7,316,764 $9,272,316 Liabilities and Stockholders' Equity Liabilities: Accounts payable and accrued expenses $292,027 $393,270 Total current liabilities 292,027 393,270 Stockholders' Equity: Common stock -- $.001 par value: 100,000,000 shares authorized; 39,843,912 and 39,646,846 shares issued and outstanding at March 31, 2005 and December 31, 2004 respectively 39,844 39,647 Additional paid-in capital 30,040,100 29,894,363 Deficit accumulated during the development stage (23,055,207) (21,054,964) Total stockholders' equity 7,024,737 8,879,046 Total liabilities and stockholders' equity $7,316,764 $9,272,316 MicroIslet, Inc. (A Development Stage Company) Consolidated Statements of Operations (unaudited) Three Months Ended August 21, 1998 March 31, (Inception) to 2005 2004 March 31, 2005 Grant revenue $-- $-- $409,790 Expenses: Research and development expenses 1,403,797 647,097 11,680,024 General and administrative expenses 637,881 594,069 11,808,614 Operating expenses 2,041,678 1,241,166 23,488,638 Loss from operations (2,041,678) (1,241,166) (23,078,848) Other income (expense): Interest income 43,041 9,245 207,590 Interest expense (6) (66) (172,901) Other (1,600) (2,651) (11,048) Total other income (expense) 41,435 6,528 23,641 Net loss $(2,000,243) $(1,234,638) $(23,055,207) Basic and diluted net loss per share $(.05) $(.04) $(1.04) Weighted average number of shares outstanding used in calculation 39,724,889 31,573,337 22,219,273 DATASOURCE: MicroIslet, Inc. CONTACT: William G. Kachioff, Vice President, Finance and Chief Financial Officer of MicroIslet, Inc., +1-858-657-0287, Web site: http://www.microislet.com/

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