Spherix Announces 2008 Financial Results

BETHESDA, Md., March 30 /PRNewswire-FirstCall/ -- Spherix Incorporated
(Nasdaq: SPEX), an innovator in biotechnology and a provider of technical and
regulatory consulting services to food, supplement, biotechnology and
pharmaceutical companies, today reported results for the year ended December
31, 2008.

Recent Company Highlights

-- Biospherics
-- Naturlose(R) Phase 3 clinical trial investigating efficacy as a
treatment for Type 2 diabetes continues on schedule; completion
expected in mid-2010
-- Interim data results expected in third quarter of 2009
-- Completion of the related Phase 2 Dose Range trial expected in
2009
-- Peer-reviewed publication of new results from animal studies

-- Spherix Consulting
-- Revenue from health sciences consulting services has grown every
quarter since its start in July 2007

-- Additional consulting staff hired to handle increased demand

"The next few months will be an exciting time for Spherix and its
shareholders," stated Dr. Claire L. Kruger, CEO of Spherix. "The Company
anticipates sharing interim data in the fall from its ongoing Phase 3 clinical
trial investigating the efficacy of Naturlose as a novel treatment for Type 2
diabetes. I am pleased to report that Spherix will be holding its first
earnings webcast on April 2, during which we will provide our shareholders and
other interested parties with additional information and updates on both the
Biospherics and Spherix Consulting subsidiaries."

Financial Results for the Year Ended 2008

Revenues for the year ended December 31, 2008 were $1.0 million, up from
$154,000 in 2007. The Company's revenue reflects the growth of its Health
Sciences consulting services, which began in July 2007. The consulting
business was created when Dr. Claire L. Kruger, CEO and COO, joined the
Company, and was formed to better facilitate the activities of Biospherics and
to provide a modest amount of revenue during the Naturlose development
efforts.

Research and development expenses were $4.0 million in 2008, down from $5.9
million in 2007. The Phase 3 clinical trial for Naturlose as a stand-alone
drug to treat diabetes started in April 2007, and the 2007 expenses included
start-up costs for the trial, including approximately $2 million for drug
packaging, warehousing, and shipping. The 2008 R&D expenses consisted of both
the Phase 3 clinical trial and the related Phase 2 Dose Range trial.

The Company's losses from continuing operations were $5.6 million and $5.9
million for the years ended 2008 and 2007, which include income tax benefit
allocations of $553,000 and $3.4 million each. Incomes from discontinued
operations were $1.5 million and $4.9 million for the years 2008 and 2007, net
of income tax expense allocations of $587,000 and $4.2 million each. Income
from discontinued operations in 2008 included a $2.0 million pre-tax gain upon
the release of the escrow balance related to the 2007 sale of the InfoSpherix
subsidiary. Income from discontinued operations in 2007 included an $8.6
million pre-tax gain on the sale of InfoSpherix.

The net loss for the year ended 2008 was $4.1 million or $0.29 per share,
compared with a net loss of $938,000 or $0.07 per share in 2007. As of
December 31, 2008, the Company's total cash, cash equivalents and short-term
investments on hand was $11.3 million, compared to $15.8 million at December
31, 2007. Working capital as of December 31, 2008, was $10.8 million, a
decrease of $4.1 million from working capital at December 31, 2007. A $6.2
million pre-tax loss from continuing operations was partly offset by the $2
million pre-tax gain realized in November 2008 upon the receipt of the escrow
balance from the 2007 sale of InfoSpherix.

Recently Published Paper

A paper co-authored by Spherix's President, Dr. Robert A. Lodder, titled
"Effect of Diets Containing Sucrose vs. D-tagatose in Hypercholesterolemic
Mice," was recently published in the journal Obesity. This paper provides
details of a study performed at the University of Kentucky to compare the
effect of dietary carbohydrate in the form of sucrose (table sugar) to
D-tagatose (Naturlose) in mice genetically engineered with a predisposition to
high cholesterol. The results of this study showed that mice fed sucrose
became obese, hyperglycemic; and hyperlipidemic; and atherosclerosis was
increased in these mice as well. Equivalent substitution of D-tagatose did
not result in the same extent of these conditions and showed that D-tagatose
did not promote substantial weight gain. The fat cells in tagatose-fed mice
were smaller than those in the sucrose-fed mice, and were approximately the
same size as the fat cells in the control mice. The results further suggested
that, in addition to minimizing the extent of atherosclerosis, a diet enriched
in D-tagatose may favor a more stable, less vulnerable plaque phenotype, a
plaque that is less like to rupture.

Webcast Info

Earnings Call: April 2, 200910:00 AM ET
AudioPlus: This event is being webcast without slides.
Webcast Link: Click here for link
Dial-in information will be issued in an upcoming Advisory Release.

About Spherix

Spherix Incorporated was launched in 1967 as a scientific research company,
under the name Biospherics Research. The company now leverages its scientific
and technical expertise and experience through its two
subsidiaries--Biospherics Incorporated and Spherix Consulting, Inc.
Biospherics is currently running a Phase 3 clinical trial to study the use of
Naturlose as a treatment for Type 2 diabetes. Its Spherix Consulting
subsidiary provides scientific and strategic support for suppliers,
manufacturers, distributors and retailers of conventional foods,
biotechnology-derived foods, medical foods, infant formulas, food ingredients,
dietary supplements, food contact substances, pharmaceuticals, medical
devices, consumer products, and industrial chemicals and pesticides. For more
information, please visit www.spherix.com.

Forward-Looking Statements

This release contains forward-looking statements which are made pursuant to
provisions of Section 21E of the Securities Exchange Act of 1934. Investors
are cautioned that such statements in this release, including statements
relating to planned clinical study design, regulatory and business strategies,
plans and objectives of management and growth opportunities for existing or
proposed products, constitute forward-looking statements which involve risks
and uncertainties that could cause actual results to differ materially from
those anticipated by the forward-looking statements. The risks and
uncertainties include, without limitation, risks that product candidates may
fail in the clinic or may not be successfully marketed or manufactured, we may
lack financial resources to complete development of Naturlose, the FDA may
interpret the results of studies differently than us, competing products may
be more successful, demand for new pharmaceutical products may decrease, the
biopharmaceutical industry may experience negative market trends, our
continuing efforts to develop Naturlose may be unsuccessful, our common stock
could be delisted from the Nasdaq Capital Market, and other risks and
challenges detailed in our filings with the U.S. Securities and Exchange
Commission, including our current report on Form 8-K filed on October 10,
2007. Readers are cautioned not to place undue reliance on any
forward-looking statements which speak only as of the date of this release.
We undertake no obligation to publicly release the results of any revisions to
these forward-looking statements that may be made to reflect events or
circumstances that occur after the date of this release or to reflect the
occurrence of unanticipated events.

Spherix Incorporated
Consolidated Statements of Operations
For the years ended December 31, 2008 and 2007

2008 2007

Revenue $1,025,961 $154,698

Operating expense
Direct costs 397,645 54,292
Research and development expense 4,004,565 5,865,426
Selling, general and administrative
expense 3,135,310 3,872,041

Total operating expense 7,537,520 9,791,759

Loss from operations (6,511,559) (9,637,061)

Interest income 348,443 378,055
Interest expense (2,220) (77)
Other expense (5,994) -

Loss from continuing operations before
taxes (6,171,330) (9,259,083)
Income tax benefit 552,803 3,408,015

Loss from continuing operations (5,618,527) (5,851,068)

Discontinued operations
Income from discontinued operations 2,070,091 9,136,047
Income tax expense (587,098) (4,223,353)
Income from discontinued operations 1,482,993 4,912,694

Net loss $(4,135,534) $(938,374)

Net (loss) income per share, basic
Continuing operations $(0.39) $(0.41)
Discontinued operations $0.10 $0.35
Net (loss) income per share, basic $(0.29) $(0.07)

Net (loss) income per share, diluted
Continuing operations $(0.39) $(0.41)
Discontinued operations $0.10 $0.35
Net (loss) income per share, diluted $(0.29) $(0.07)

Weighted average shares outstanding,
basic 14,342,953 14,215,289
Weighted average shares outstanding,
diluted 14,342,953 14,215,289

Spherix Incorporated
Consolidated Balance Sheets
As of December 31, 2008 and 2007

ASSETS 2008 2007
Current assets
Cash and cash equivalents $9,404,843 $15,839,959
Short-term investments 1,894,434 -
Trade accounts receivable 281,342 38,581
Other receivables 37,223 167,229
Prepaid expenses and other assets 282,971 372,242
Total current assets 11,900,813 16,418,011

Property and equipment, net 310,365 55,088
Patents, net of accumulated amortization
of $38,588 and $110,599 14,433 32,371
Deposit 35,625 35,625
Total assets $12,261,236 $16,541,095

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $710,881 $1,046,537
Accrued salaries and benefits 304,756 362,334
Income taxes payable - 50,738
Deferred revenue 39,347 15,165
Total current liabilities 1,054,984 1,474,774

Deferred compensation 660,000 609,000
Deferred rent 136,736 6,531
Total liabilities 1,851,720 2,090,305

Commitments and contingencies - -

Stockholders' equity
Preferred stock, $0.01 par value,
2,000,000 shares authorized;
none issued and outstanding - -
Common stock, $0.005 par value,
50,000,000 shares authorized;
14,437,600 and 14,399,140 issued,
14,357,162 and 14,318,702
outstanding at December 31, 2008 and
2007, respectively 72,188 71,996
Paid-in capital in excess of par value 27,602,486 27,508,418
Treasury stock, 80,438 shares, at cost
at December 31, 2008 and 2007, respectively (464,786) (464,786)
Accumulated deficit (16,800,372) (12,664,838)
Total stockholders' equity 10,409,516 14,450,790
Total liabilities and stockholders'
equity $12,261,236 $16,541,095

SOURCE Spherix Incorporated

Investor Relations of Spherix Incorporated, +1-301-897-2540, info@spherix.com