Financial Highlights

* Recognized revenue of $9.6 million for the first half of 2008
* Net loss of $2.6 million for the first half of 2008
* Cash receipts for the first half of 2008 more than doubled versus the first half of 2007
* Cash and accounts receivable totaled $8.5 million as at 30 June 2008
* Management believes the Company is on track for double-digit percentage revenue growth for full-year 2008

Operating Highlights

* Entered into an agreement to conduct in silico research for UCB Pharma S.A. in rheumatoid arthritis
* Signed an agreement with PDL Biopharma to simulate clinical trials to support PDL’s antibody development programs
* Obtained a U.S. patent that expires in 2024 for the mathematical and computer modeling of diabetes
* Entered into an agreement with Unilever to build a new platform and apply Entelos’ technology to accelerate Unilever’s product development
* Broadened availability of in silico testing of “virtual mice”, providing Entelos’ Type 1 Diabetes Realab platform online to members of the American Diabetes Association
* Entered into a new agreement that extends Entelos’ technology applications to risk assessment and reduction in cardiovascular disease in “virtual consumers”
* Selected to participate in a three-year, $14 million industry-academic consortium funded by Pfizer to identify new targets for diabetes and obesity
* Entered into an agreement with Eli Lilly to conduct in silico research in the field of diabetes using the Entelos® Metabolism PhysioLab® platform

Post-Period Announcements

* Obtained a U.S. patent for a gene expression test for liver toxicity screening, which is part of Entelos’ DrugMatrix®, the world’s largest reference database linking gene expression profiles of over 630 drugs to results from traditional preclinical pharmacology, safety, and toxicity tests
* Entered into an agreement with Eli Lilly for a perpetual license to Entelos’ DrugMatrix database and additional customized report services from ToxFx®.

James Karis, Chief Executive Officer of Entelos, said: “We have had solid financial performance over the past six months to the end of June and are pleased to continue attracting pharmaceutical customers as well as expanding our customer base to include consumer products companies. We believe that our outlook remains positive and we look forward to continuing to leverage our predictive technologies to improve human health.”

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