During the second quarter and six months ended June 30, 2008, AtheroGenics recorded no revenues, as compared to $30.3 million and $41.7 million, respectively, for the same periods in 2007. Revenues in 2007 were associated with the Company's License Agreement with AstraZeneca for AGI-1067, which was terminated last year.

Research and development expenses for the second quarter of 2008 decreased to $8.5 million as compared to $22.3 million for the same period in 2007. For the six months ended June 30, 2008, research and development expenses decreased to $17.7 million, compared to $42.3 million for the same period in 2007. The decrease in the quarter and six-month periods was primarily due to decreased expenditures for the ARISE and FOCUS Phase 3 clinical trials, which have since been concluded, and lower personnel costs resulting from the Company's organizational restructuring in May 2007. Partially offsetting these declines were clinical trial expenditures for the ANDES Phase 3 clinical trial which commenced in the second half of 2007.

Marketing, general and administrative expenses for the second quarter of 2008 decreased to $2.9 million, as compared to $3.6 million for the same period in 2007. For the six months ended June 30, 2008, marketing, general and administrative expenses decreased to $6.1 million as compared to $7.5 million for the same period in 2007. The decrease in the quarter and year-to-date periods is primarily a reflection of lower personnel costs and professional fees.

Restructuring and impairment expense in the second quarter and six months ended 2007 represents the write-off of impaired manufacturing assets, as a result of the transition of commercial manufacturing activities from AstraZeneca, as well as severance and asset impairment costs from an organizational restructuring that was undertaken in the second quarter of 2007.

Interest and other income decreased to $481,000 in the second quarter of 2008 from $1.6 million reported for the comparable period in 2007. For the six months ended June 30, 2008, interest and other income decreased to $1.4 million as compared to $3.5 million reported for the same period in 2007. The decrease is due to reduced levels of invested cash and lower interest rates.

Interest expense for the second quarter of 2008 was $3.4 million, as compared to $2.1 million for the same period in 2007. For the six months ended June 30, 2008, interest expense increased to $6.8 million as compared to $4.2 million for the same period in 2007. The increase in interest expense for both periods was primarily due to the additional debt incurred as a result of an exchange, in the third quarter of 2007, of $38.0 million of 4.5 percent convertible notes due in 2008 for $60.4 million of 4.5 percent convertible notes due in 2011, as well as the accretion of the discount recorded in connection with the new notes.

AtheroGenics reported a net loss of $14.3 million, or $0.36 per share, for the second quarter of 2008, as compared to $6.1 million, or $0.16 per share, for the same period in 2007.