Emisphere Technologies, Inc.
Nov 9, 2009

Emisphere Technologies Announces Financial and Operational Results for the Third Quarter and First Nine Months of 2009

Conference Call/Webcast to be held today, November 9, 2009 at 10:00 AM EST

CEDAR KNOLLS, N.J., Nov 09, 2009 (BUSINESS WIRE) -- Emisphere Technologies, Inc. (OTC BB: EMIS) today announced financial and operational results for the third quarter and nine months ended September 30, 2009.

THIRD QUARTER FINANCIAL RESULTS

For the three months ended September 30, 2009, Emisphere reported a net loss of $4.0 million, or $0.11 per basic and diluted share, compared to a net loss of $5.1 million, or $0.17 per basic and diluted share for the same period last year.

The operating loss for the three months ended September 30, 2009 was $3.4 million, compared to an operating loss of $5.7 million in the same period last year. Total operating expenses for the three months ended September 30, 2009 were $3.4 million; a decrease of approximately $2.4 million, or 42%, compared to $5.8 million for the same period last year. Total operating expenses for the three months ended September 30, 2009 include research and development costs of $0.8 million and general and administrative expenses of $2.5 million, compared to $2.9 million and $2.7 million respectively, for the same period last year.

Other expense for the three months ended September 30, 2009 was $0.6 million, compared to other income of $0.6 million for the same period last year.

YEAR TO DATE FINANCIAL RESULTS

For the nine months ended September 30, 2009, Emisphere reported a net loss of $13.6 million, or $0.42 per basic and diluted share, including a $1.2 million one time favorable adjustment to the restructuring charge and gain on the disposal of fixed assets associated with the closure of its research and development facility in Tarrytown, New York in April 2009. This compares to a net loss of $16.7 million, or $0.55 per basic and diluted share for the nine months ended September 30, 2008.

Total operating expenses for the nine months ended September 30, 2009 were $11.1 million, a decrease of approximately $7.3 million, or 40% compared to $18.3 million for the same period last year. Total operating expenses for the nine months ended September 30, 2009 include research and development costs of $3.5 million and general and administrative expenses of $8.3 million and the $1.2 million one time favorable adjustment to the restructuring charge and gain from the disposal of fixed assets, compared to $10.1 million and $7.7 million respectively, for the same period last year.

Other expense for the nine months ended September 30, 2009 was $2.6 million, compared to other income of $1.4 million in the same period last year.

LIQUIDITY

At September 30, 2009, Emisphere Technologies reported cash and restricted cash of $7.2 million, compared to $1.5 million at June 30, 2009. Approximately $12.5 million is due as payment of the Novartis Note on December 1, 2009. Assuming we will be able to satisfy our obligation under the Novartis Note by some means other than the use of our existing capital resources, we anticipate that those existing capital resources, without implementing additional cost reductions, raising additional capital, or obtaining substantial cash inflows from potential partners or our products, will enable us to continue operations through approximately February 2010.

The Company has implemented aggressive cost controls to conserve its cash and continues to evaluate both non-dilutive and traditional financing options. Management believes there are reasonable financing alternatives potentially available to it that will enable it to meet its near term operating cash requirements. Please refer to the Quarterly Report on Form 10Q for the quarter ended September 30, 2009 for additional information.

KEY PRODUCT AND CORPORATE DEVELOPMENTS

The live webcast of today's scheduled 10AM EST conference call can be accessed through the company's web site at: www.emisphere.com. The live conference call dial-in number is: 1-877-852-6579(United States and Canada) or 1-719-325-4772 (International). In addition, an archive of the webcast can be accessed through the same link; an audio replay of the call will be available beginning at 1:00 PM EST through midnight on November 23, 2009 by calling 1-888-203-1112(United States and Canada) or 1-719-457-0820(International). The conference replay PIN is 3548334.

About Emisphere Technologies, Inc.

Emisphere is a biopharmaceutical company that focuses on a unique and improved delivery of therapeutic molecules or nutritional supplements using its Eligen(R) Technology. These molecules and compounds could be currently available or in development. Such molecules are usually delivered by injection; in many cases, their benefits are limited due to poor bioavailability, slow on-set of action or variable absorption. The Eligen(R) Technology can be applied to the oral route of administration as well other delivery pathways, such as buccal, rectal, inhalation, intra-vaginal or transdermal. The company's website is: www.emisphere.com.

Safe Harbor Statement Regarding Forward-looking Statements

The statements in this release and oral statements made by representatives of Emisphere relating to matters that are not historical facts (including without limitation those regarding the timing or potential outcomes of research collaborations or clinical trials, any market that might develop for any of Emisphere's product candidates and the sufficiency of Emisphere's cash and other capital resources) are forward-looking statements that involve risks and uncertainties, including, but not limited to, the likelihood that future research will prove successful, the likelihood that any product in the research pipeline will receive regulatory approval in the United States or abroad, the ability of Emisphere and/or its partners to develop, manufacture and commercialize products using Emisphere's drug delivery technology, Emisphere's ability to fund such efforts with or without partners, and other risks and uncertainties detailed in Emisphere's filings with the Securities and Exchange Commission, including those factors discussed under the caption "Risk Factors" in Emisphere's Annual Report on Form 10-K for the fiscal year ended December 331, 2008 (file no. 000-17758) filed on March 16, 2009 and as amended on Form 10-K/A as filed on April 30, 2009, and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2009, and as amended on Form 10-Q/A asfiled on October 21, 2009.

-Financial Tables to Follow-

EMISPHERE TECHNOLOGIES INC.

BALANCE SHEETS

September 30, 2009 and December 31, 2008

(in thousands, except share and per share data)

September 30,December 31,
20092008
(unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 6,975 $ 7,214
Accounts receivable, net of allowance of $9 in September 2009 and December 2008 21 232
Prepaid expenses and other current assets 253273
Total Current Assets 7,249 7,719
Equipment and leasehold improvements, net 161 465
Purchased technology, net 1,137 1,316
Restricted cash 255 255
Other assets 367421
Total assets $9.169$10,176
Liabilities and Stockholders' Deficit:
Current liabilities:
Notes payable, including accrued interest and net of related discount $ 12,422 $ 12,011
Accounts payable and accrued expenses 4,511 2,361
Deferred revenue, current 9 87
Derivative instruments
Related party 2,179 153
Others 2,042 114
Restructuring accrual, current 1,253 927
Other current liabilities 5120
Total current liabilities 22,467 15,673
Notes payable, including accrued interest and net of related discount 11,883 18,209
Restructuring accrual -- 1,953
Deferred revenue 11,467 11,240
Derivative instruments - related party

Deferred lease liability and other liabilities

3,800 90129
Total liabilities 49,70747,204
Stockholders' deficit:
Preferred stock, $.01 par value; authorized 1,000,000 shares; none issued and outstanding -- --
Common stock, $.01 par value; authorized 100,000,000 shares; issued 42,360,133 shares (42,070,401 outstanding) as of September 30, 2009; issued 30,630,810 shares (30,341,078 outstanding) as of
December 31, 2008 424 306
Additional paid-in-capital 392,059 400,306
Accumulated deficit (429,069 ) (433,688 )
Common stock held in treasury, at cost; 289,732 shares (3,952 ) (3,952 )
Total stockholders' deficit (40,538 ) (37,028 )
Total liabilities and stockholders' deficit $9,169$10,176

EMISPHERE TECHNOLOGIES, INC.

STATEMENT OF OPERATIONS

For the three and nine months ended September 30, 2009 and 2008

(in thousands, except share and per share data)

(unaudited)

For the three months ended

September 30,

For the nine months ended

September 30,

2009200820092008
Revenue $--$77$--$246
Costs and expenses:
Research and development 782 2,945 3,452 10,101
General and administrative expenses 2,493 2,680 8,348 7,736
Restructuring costs -- -- (353 ) --
Gain on disposal of fixed assets (2 ) -- (824 ) (135 )
Depreciation and amortization 120192427641
Total costs and expenses 3,3935,81711,05018,343
Operating loss (3,393)(5,740 ) (11,050 ) (18,097 )
Other non-operating income (expense):
Other income (expense) 24 87 91 310
Sublease income -- 263 232 542
Sale of patents ___ -- 500 1,500
Change in fair value of derivative instruments
Related party 45 467 (35 ) 662
Other 576 573 322 580
Interest expense
Related party (1,150 ) (618 ) (3,290 ) (1,789 )
Other (139 ) (132 ) (411 ) (393 )
Total other non-operating income (expense) (644 ) 640(2,591 ) 1,412
Net loss $(4,037 ) $(5,100 ) $(13,641 ) $(16,685 )
Net loss per share, basic and diluted $ (0.11 ) $ (0.17 ) $ (0.42 ) $ (0.55 )
Weighted average shares outstanding, basic and diluted 35,695,769 30,338,174 32,188,553 30,337,442

SOURCE: Emisphere Technologies, Inc.

Emisphere Technologies, Inc.
Michael R. Garone, 973-532-8005
Chief Financial Officer
mgarone@emisphere.com
or
Rx Communications Group
Paula Schwartz, 917-322-2216
pschwartz@rxir.com
or
West Mill Marketing (for media only)
Jeff Winton, 908-872-2682
jeffwmm@aol.com

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