TORONTO, May 30 /CNW/ - Theralase Technologies Inc. (TSXV: TLT) today announced financial results for the three months ended March 31, 2008.

Highlights
-   Total sales were $324,026, a decrease of 19% compared to $398,144 in
    Q1 2007
-   Canadian product sales increased 75% to $240,710; U.S. product sales
    decreased 68% to $83,316
-   R&D expenses of $46,037 and non-cash expenses(x) of $120,260
    contributed to a net loss of $339,948
-   Prepared for clinical studies due to start in Q2 with the Mayo Clinic
    and Scripps Institute to demonstrate the efficacy of Theralase's
    patented TLC-2000 therapeutic laser
-   Received positive R&D results in the destruction of individual cancer
    cell lines as all three of Theralase's photodynamic compounds (PDCs)
    showed the ability to selectively target cancerous cells over healthy
    cells
-   Shipped the first of ten beta prototype light-based systems to Europe
    for testing; the balance to be sent to a European pharmaceutical
    company over the next two quarters

"During the quarter, we saw the benefit of hiring two new salespeople as product sales in Canada increased by 75%," said Roger Dumoulin-White, President and CEO of Theralase Technologies. "The 68% decrease in U.S. product sales was mainly due to a significant decline in smoking cessation product sales, the loss of a U.S. distributor who no longer sells therapeutic lasers, and the strengthening of the Canadian dollar versus the U.S. dollar. To build out sales in the U.S., our key target market, we expect to have a regional U.S. sales team in place by the end of this year and are evaluating the opportunity to work with a leading U.S. distributor."

"In the second quarter, Theralase plans to commission clinical studies with the Mayo Clinic and Scripps Institute, aimed at demonstrating the superior therapeutic qualities of our latest laser system, the TLC-2000, and to secure a new CPT code for reimbursements of laser treatments in the U.S. We expect the results to be published around the time of the product launch, which is expected in Q4 in 2008. We also plan to release results in Q2 on the efficacy of our patented PDCs in selectively targeting cancerous cells."

Financial Review

Revenue decreased 19% to $324,026 for the three months ended March 31, 2008, compared to $398,144 in the same period in 2007.

Product and product-related sales decreased 19% to $320,053 from $393,082 in Q1 2007. Canadian product sales increased 75% to $240,710 due to the addition of two new sales personnel. Product sales to the U.S. decreased by 68% to $83,316 as they were negatively affected by a significant decline in smoking cessation product sales, the loss of a U.S. distributor, and the strengthening of the Canadian dollar versus the U.S. dollar. U.S.