National Patent Development Corporation Reports Year End Operating Results

NEW YORK--(Business Wire)--
National Patent Development Corporation (OTC Bulletin Board:
NPDV.OB - News) today reported net income of $11,722,000, or $0.67 per
basic and diluted share, for the year ended December 31, 2007,
compared to a net loss of $(1,207,000) or $(0.07) per basic share, for
the year ended December 31, 2006.

The net income in 2007 is due, primarily, to a gain of $17,031,000
recognized as a result of the merger of Valera Pharmaceuticals, Inc.,
in which the Company had an approximately 14% interest, and Indevus
Pharmaceuticals, Inc. This gain was offset by a realized loss of
$1,023,000 based upon the proceeds received by the Company from the
post-merger sale of all the Indevus shares received on the exchange.
The gain includes the May 2007 receipt of the first contingent payment
from Indevus based upon achievement of a post-merger milestone. The
Company had cash and cash equivalents of $15,698,000 at December 31,
2007. In addition, for the year ended December 31, 2007, net operating
income of the Company's segments excluding corporate and other
expenses increased by $1,543,000 as compared to the prior year, due,
primarily, to improved operating results for Five Star Products, Inc.
(Five Star).

National Patent's majority owned subsidiary, Five Star, issued a
press release on March 31, 2008 announcing its results for the year
ended December 31, 2007, which is attached hereto.

About National Patent Development Corporation

National Patent Development Corporation (OTC Bulletin Board:
NPDV.OB - News), is the majority owner of Five Star. National Patent
also owns and operates an optical plastics business through its wholly
owned subsidiary, MXL Industries, Inc. In addition, National Patent
owns certain other non-core assets including real estate.

Safe Harbor Statement

This press release contains certain "forward-looking statements"
within the meaning of Section 21E of the Securities Exchange Act of
1934 and the U.S. Private Securities Litigation Reform Act of 1995,
including statements relating to, among other things, future business
plans, strategies and financial position, working capital and capital
expenditure needs, growth opportunities, and any statements of belief
and any statements of assumptions underlying any of the foregoing.
Neither the Company nor Five Star Products, Inc. have any material
third party commitments with respect to growth plans. There is no
assurance that specific plans can be executed or, if executed, will be
successful from an operational or financial standpoint. These plans
could require capital beyond the funds presently available to the
Company.

These forward-looking statements reflect the current view of the
management of National Patent Development Corporation with respect to
future events and financial performance and are subject to certain
risks, uncertainties, assumptions and changes in condition that could
cause actual results to differ materially from those in the
forward-looking statements, all of which are difficult to predict and
many of which are beyond the control of National Patent Development
Corporation, including, but not limited to the risks, uncertainties,
assumptions and changes in condition detailed National Patents'
periodic reports and registration statements filed with the Securities
and Exchange Commission.

National Patent Development Corporation does not intend to, and
disclaims any duty or obligation to, update or revise any
forward-looking statements or industry information set forth in this
press release to reflect new information, future events or otherwise.

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NATIONAL PATENT DEVELOPMENT CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(in thousands, except per share data)

Year Ended December 31,
2007 2006
----------------------------------------------------------------------

Sales $ 132,887 $117,084
Cost of sales 109,220 97,605
----------------------------------------------------------------------
Gross margin 23,667 19,479
----------------------------------------------------------------------
Selling, general and administrative expenses (23,983) (18,678)
----------------------------------------------------------------------
Operating profit (loss) (316) 801
----------------------------------------------------------------------
Interest expense (1,630) (1,565)
Gain on exchange of Valera for Indevus shares 17,031
Investment and other loss, net (1,580) (13)
----------------------------------------------------------------------
Income (loss) before income taxes and
minority interest 13,505 (777)
----------------------------------------------------------------------
Income tax expense (1,269) (327)
----------------------------------------------------------------------
Income (loss) before minority interest 12,236 (1,104)
----------------------------------------------------------------------
Minority interest (514) (103)
----------------------------------------------------------------------
Net income (loss) $ 11,722 $ (1,207)
----------------------------------------------------------------------
Net income (loss) per share
----------------------------------------------------------------------
Basic and diluted $ 0.67 $ (0.07)
----------------------------------------------------------------------

Basic weighted average shares outstanding 17,450 17,829
========================
Diluted weighted average shares outstanding 17,463 17,829
========================
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NATIONAL PATENT DEVELOPMENT CORPORATION
CONSOLIDATED BALANCE SHEETS DATA
(in thousands)

December 31,
2007 2006
----------------------------------------------------------------------
Assets
Current assets
Cash and cash equivalents $15,698 $ 4,485
Accounts and other receivables, less allowance for
doubtful accounts of $412 and $566 12,755 11,939
Inventories 27,720 22,535
Receivable from GP Strategies Corporation 251
Deferred tax asset 470 791
Prepaid expenses and other current assets 1,326 724
----------------------------------------------------------------------
Total current assets 57,969 40,725
----------------------------------------------------------------------
Marketable securities available for sale 109 343
Investment in Valera, including available for sale
securities of $4,823 5,955
Property, plant and equipment, net 3,534 2,925
Other assets 3,293 3,286
----------------------------------------------------------------------
Total assets $64,905 $53,234
----------------------------------------------------------------------
Liabilities and stockholders' equity
Current liabilities
Current maturities of long-term debt $ 257 $ 151
Short term borrowings 19,928 18,414
Accounts payable and accrued expenses 13,530 9,978
----------------------------------------------------------------------
Total current liabilities 33,715 28,543
----------------------------------------------------------------------
Long-term debt less current maturities 1,441 1,332
Deferred tax liability 279 279
Other liabilities 247
Minority interest 2,902 1,696
Common stock subject to exchange rights 493

Commitments and contingencies
Stockholders' equity
Preferred stock, par value $0.01 per share
authorized 10,000,000 shares; issued none - -
Common stock, par value $0.01 per share authorized
30,000,000 shares; issued 18,086,006 shares in 2007
and 17,861,670 shares in 2006 180 178
Additional paid-in capital 26,825 25,990
Retained earnings (deficit) 2,545 (9,177)
Treasury stock, at cost (1,528,462 shares in 2007
and 100,000 shares in 2006) (3,458) (188)
Accumulated other comprehensive income (loss) (17) 4,334
----------------------------------------------------------------------
Total stockholders' equity 26,075 21,137
----------------------------------------------------------------------
Total liabilities and stockholders' equity $64,905 $53,234
----------------------------------------------------------------------
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Exhibit A

The following Five Star Products, Inc. press release was issued
earlier today at 3:06 pm.

Five Star Products, Inc. Reports Year End Results

-- Revenue of $123.7 million for 2007, up $15.6 million or 14.5%
compared to 2006

-- Adjusted EBITDA of $4,546,000 for 2007, up $2,113,000 or 87%
compared to 2006

-- Net income of $1,199,000 for 2007, up $914,000 or 321%
compared to 2006

NEW YORK, March 31, 2008 -- Five Star Products, Inc. (OTC Bulletin
Board: FSPX.OB - News), a leading distributor of paint sundry and
hardware products in the Northeast and Middle-Atlantic states, today
announced its revenue of $123.7 million for the year ended December
31, 2007, a 14.5% increase over the $108.1 million reported for last
year. Net income of $1,199,000 for the year, $0.08 per basic share and
$0.07 per diluted share, increased 321% as compared to net income of
$285,000, $.02 per basic and diluted share, for the year ended
December 31, 2006. The Company reported that results for the year
ended December 31, 2007 include nine months of contribution from the
Right-Way Dealer Warehouse, Inc., business which was acquired on April
5, 2007.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization), as stated before stock compensation expense of
$463,000, which affects only 2007 results, was $4,546,000, an increase
of $2,113,000 or 87% compared to $2,433,000 for 2006.

Five Star announced the resignation of Leslie Flegel, the
Company's Chairman of the Board, who has left the Company to pursue
other interests. We wish Mr. Flegel great success in his new business.
Our President & CEO, John Belknap, will assume the additional duties
and title of Chairman of the Board.

John Belknap commented, "The Five Star operating team turned in an
outstanding performance in 2007, increasing Adjusted EBITDA to a
record $4.5 million on a sales increase of $15.6 million. The results
benefited from solid organic growth and the successful integration of
the Right-Way acquisition. Right-Way validates our plan to leverage
Five Star's management organization and infrastructure with strategic
acquisitions."

Mr. Belknap also struck a cautionary tone, noting, "Our customers
are facing a challenging economic environment in 2008, and Five Star
is not immune to its effects. From a cost and control perspective, our
business is well positioned to cope with current market conditions
and, also, to capitalize on opportunities that may arise from it."

Bruce Sherman, Five Star Group's CEO, commenting on 2007 said,
"This was a year of growth and growth at Five Star always means
finding opportunities to better serve our customers. Our people are to
be commended for consistently performing at the highest levels for our
customers. We are excited, too, by the opportunity to improve service
through our updated website as well as other planned technology and
infrastructure investments."

About Five Star Products, Inc.

Five Star Products, Inc. (OTC Bulletin Board: FSPX.OB - News) is
engaged in the wholesale distribution of paint sundry and hardware
products in the Northeast and Middle-Atlantic states with particular
strength in the greater New York metropolitan area. The Company
distributes products to approximately 3,500 independent retail
dealers, which include paint stores, independent hardware stores,
lumber yards, and do-it yourself centers. The Company distributes a
range of private label products sold under the "Five Star" name. Five
Star operates two distribution centers, the primary one located in
East Hanover, NJ and another in Newington, CT.

Safe Harbor Statement

This press release contains certain "forward-looking statements"
within the meaning of Section 21E of the Securities Exchange Act of
1934 and the U.S. Private Securities Litigation Reform Act of 1995,
including statements relating to, among other things, future business
plans, strategies and financial position, working capital and capital
expenditure needs, growth opportunities, and any statements of belief
and any statements of assumptions underlying any of the foregoing. The
Company has no material third party commitments with respect to growth
plans. There is no assurance that specific plans can be executed or,
if executed, will be successful from an operational or financial
standpoint. These plans could require capital beyond the funds
presently available to the Company.

These forward-looking statements reflect current views of the
management of Five Star Products, Inc. with respect to future events
and financial performance and are subject to certain risks,
uncertainties, assumptions and changes in condition that could cause
actual results to differ materially from those in the forward-looking
statements, all of which are difficult to predict and many of which
are beyond the control of Five Star Products including, but not
limited to the risks, uncertainties, assumptions and changes in
condition detailed in Five Star Products' periodic reports and
registration statements filed with the Securities and Exchange
Commission.

Five Star Products, Inc. does not intend to, and disclaims any
duty or obligation to, update or revise any forward-looking statements
or industry information set forth in this press release to reflect new
to reflect new information, future events or otherwise.

Contact:

Five Star Products, Inc.

John Belknap, 646-742-1627

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FIVE STAR PRODUCTS, INC. AND SUBSIDIARIES
Non- GAAP Reconciliation- EBITDA and Adjusted EBITDA
(in thousands)
(unaudited)

Year ended
December 31,
-------------
2007 2006
-------------
Net income $1,199 $ 285
Interest expense, net 1,636 1,565
Income tax expense 888 261
Depreciation and amortization 360 322
-------------
EBITDA 4,083 2,433
-------------
Stock compensation expense 463
-------------
Adjusted EBITDA $4,546 $2,433
-------------
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EBITDA is a widely used non-GAAP financial measure of operating
performance. It is presented as supplemental information that the
Company believes is useful to investors to evaluate its results
because it excludes certain items that are not directly related to the
Company's core operating performance. EBITDA is calculated by adding
back net interest expense, income tax expense, and depreciation and
amortization to net income. EBITDA should not be considered as a
substitute either for net income, as an indicator of the Company's
operating performance, or cash flow, as a measure of the Company's
liquidity. In addition, because EBITDA may not be calculated
identically by all companies, the presentation here may not be
comparable to other similarly titled measures of other companies.
Adjusted EBITDA is calculated as EBITDA prior to non-cash stock
compensation expense.

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FIVE STAR PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS DATA
(in thousands, except share and per share data)

December 31, December 31,
2007 2006
------------ ------------
Assets
Current assets
Cash $ 3 $ 3
Accounts receivable, less allowance
for doubtful accounts of $361 and $547,
respectively 11,254 10,520
Inventory 26,965 21,744
Deferred income taxes 469 652
Prepaid expenses and other current assets 1,151 520
------------ ------------
Total current assets 39,842 33,439
Property and equipment, net 833 530
Deferred income taxes 24 166
Other assets 391 362
------------ ------------
Total Assets $41,090 $34,497
============ ============

Liabilities and Stockholders' Equity
Current liabilities
Short-term borrowings $19,303 $17,664
Note payable to NPDC 2,800
Accounts payable and accrued expenses
(including due to affiliates of $129 and
$79, respectively) 12,211 9,313
------------ ------------
Total current liabilities 31,514 29,777

Convertible note payable to NPDC 2,800
Interest rate collar 6
------------ ------------
Total liabilities 34,314 29,783
------------ ------------

Commitments

Stockholders' equity
Common stock, authorized 30,000,000 shares,
par value $.01 per share; 19,493,098 shares
issued and 16,509,577 outstanding in 2007
and 17,293,098 shares issued and
14,309,577 outstanding in 2006 195 173
Additional paid-in capital 9,544 8,552
Accumulated deficit (2,296) (3,495)
Accumulated other comprehensive income 33 184
Treasury stock, at cost 2,983,521 shares in
2007 and 2,983,521 shares in 2006 (700) (700)
------------ ------------
Total stockholders' equity 6,776 4,714
------------ ------------
$41,090 $34,497
============ ============
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FIVE STAR PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS DATA
(in thousands, except per share data)

Year Ended December 31,
-----------------------
2007 2006
--------- ---------

Sales $123,713 $108,088
Cost of goods sold 102,246 90,877
--------- ---------
Gross margin 21,467 17,211

Selling, general and
administrative expenses (17,744) (15,100)
--------- ---------

Operating income 3,723 2,111

Other income 45 62

Interest expense (including $252 and 280
to affiliates) (1,681) (1,627)
--------- ---------

Income before income taxes 2,087 546

Income tax expense (888) (261)
--------- ---------

Net income $ 1,199 $ 285
========= =========

Net income per share
Basic $ .08 $ .02
========= =========
Diluted $ .07 $ .02
========= =========

Basic weighted average shares outstanding 15,944 14,396
========= =========
Diluted weighted average shares outstanding 18,327 14,699
========= =========
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National Patent Development Corporation
John Belknap, 646-742-1627

Copyright Business Wire 2008