The Company reported revenues of $7.9 million for the quarter ended March 31, 2009 compared to revenues of $14.2 million for the same period in 2008. Revenues included $6.5 million and $3.2 million in the 2009 and 2008 quarters, respectively, as reimbursement for clinical trial costs from Forest Laboratories. Additionally, in 2008, we received a $10.0 million milestone payment from Forest upon acceptance by the FDA of our New Drug Application (NDA) for Savella.

Total operating expenses for the quarter ended March 31, 2009 were $17.7 million compared to $18.8 million for the same period in 2008. Excluding a $12.6 million charge in 2008 for in-process research and development in connection with our acquisition of Proprius, the increase in operating expenses in 2009 was primarily due to costs associated with building our sales force, marketing costs incurred in connection with our personalized medicine services business and increased research and development costs. Research and development costs in 2009 included a $3.0 million milestone payment to a licensor, Pierre Fabre, upon our NDA approval and a $2.0 million payment in connection with an asset purchase transaction for a technology to diagnose and monitor Lupus.

Recent Highlights:

 --  On January 14, 2009, the Company, along with its collaboration     partner, Forest Laboratories, announced that Savella(TM) (milnacipran HCl)     was approved by the FDA for the management of fibromyalgia.  In connection     with this approval, the Company received a $25.0 million milestone payment     from Forest Laboratories, which is being amortized over the remaining     patent life for Savella. --  In April 2009, Savella was shipped to wholesalers and became available     in pharmacies.      

About Cypress Bioscience, Inc.

Cypress Bioscience, Inc. provides therapeutics and personalized medicine services, facilitating improved and individualized patient care. Cypress addresses the evolving needs of specialist physicians and their patients by identifying unmet medical needs in the areas of pain, rheumatology, and physical medicine and rehabilitation, including challenging disorders such as fibromyalgia and rheumatoid arthritis. This approach to improving patient care creates a unique partnership with physicians.