ADDISON, Texas, Aug. 11 /EMWNews/ -- ULURU Inc. (Amex:

ULU) today reported financial results for the second quarter ended June 30,

2008.



    For the quarter ended June 30, 2008, the net loss attributable to

common stockholders was $2,334,000, or $0.04 per share, compared to a net

loss of $1,209,000, or $0.02 per share, for the corresponding period in

2007. The second quarter 2008 net loss was impacted by non-cash expenses of

$560,000, which included share-based compensation, amortization, and

depreciation of $261,000, $269,000 and $30,000, respectively, whereas the

second quarter 2007 net loss included non-cash expenses of $405,000, which

included share-based compensation, amortization, and depreciation of

$119,000, $269,000 and $17,000, respectively.



    Income Statement



    Revenues for the second quarter of 2008 were $96,000, compared with

$119,000 for the same period last year. The decrease of $23,000 in revenues

is primarily attributable to a decrease in sponsored research of $35,000,

as the prior year revenue was non-recurring.



    Total costs and expenses, including amortization and depreciation,

increased by $975,000 in the second quarter of 2008 to $2,508,000, as

compared with the corresponding period in 2007 where total costs and

expenses, including amortization and depreciation, were $1,533,000. The

overall expense increase is primarily attributable to increases in Research

and Development of $314,000 and increases in Selling, General and

Administrative of $648,000. The increase in Research and Development

expenses is attributed to additional costs in direct research for

Altrazeal(TM) related products of $35,000 and OraDisc(TM) related products

of $16,000, increases for our clinical testing programs of $53,000,

regulatory consulting and expenses of $66,000, and additional scientific

personnel costs, including share-based compensation, of approximately

$145,000. The Selling, General and Administrative expense increase was

comprised of administrative personnel costs of $299,000, which is inclusive

of $134,000 of share-based compensation, along with increased expenses of

$323,000 associated with the ramp-up of our initial sales and marketing

efforts for our wound care product line.



    Interest and miscellaneous income decreased in the second quarter of

2008 to $79,000 as compared with $206,000 for the same period in the

previous year. The decrease of $127,000 is attributable to a decrease in

interest income due to lower cash balances and lower interest yields in

2008 versus prior year.



    Balance Sheet



    Cash and cash equivalents totaled $11,684,000 at June 30, 2008, a

decrease of $2,296,000 as compared to our cash and cash equivalents at

December 31, 2007 of $13,980,000. The decrease in net cash for the six

months ended June 30, 2008 was due primarily to the net cash used in

operations of $1,781,000 and the expenditure of $420,000 for manufacturing

equipment purchases associated with our OraDisc(TM) and Altrazeal(TM)

products.



    Overview



    Commenting on the financial results Kerry P. Gray, President and CEO

stated, "With the exception of a delayed receipt of a milestone payment

associated with a regulatory filing, our operating results were in line

with our forecast projections. The increase in operating expenses are

primarily associated with the commercialization and development of our

Altrazeal(TM) range of products. To support the launch of Altrazeal(TM), we

will continue to invest in our sales and marketing efforts. These efforts

are expected to establish key opinion leader support and to develop our

business in burn and wound care centers."



    During the second quarter we achieved numerous important milestones to

include;




    -- Launch of Altrazeal(TM);

    -- Establishment of our commercial infrastructure, which now includes nine

       product specialists;

    -- Signing of definitive agreement to acquire Bio Med Sciences, Inc.; and

    -- Signing of an additional OraDisc(TM) development agreement.



    In conjunction with strategic partners, advancements for of the

development of wound care actives in Altrazeal(TM) continues. Additionally,

we have advanced the development of Altrazeal(TM) containing silver and

anticipate filing a 510k regulatory application with the FDA within the

next 60 days.



    Gray continued, "We are very pleased with the reception Altrazeal(TM)

has received both in burn units and wound care centers. The clinical

experience to date is very positive, with the advantages of the Nanoflex

technology being demonstrated in a wide variety of difficult to treat

wounds. The pre-clinical results including, ease of application, use

without a second dressing, accelerated healing, and reduced dressing

changes have been demonstrated in numerous wound types. Importantly,

patient feedback on the comfort of the dressing and pain has been very

positive."

    About ULURU Inc.:



    ULURU Inc. is an emerging specialty pharmaceutical company focused on

the development of a portfolio of wound management, plastic surgery and

oral care products to provide patients and consumers improved clinical

outcomes through controlled delivery utilizing our innovative transmucosal

delivery system and Hydrogel Nanoparticle Aggregate technology. For further

information about ULURU Inc., please visit our website at

http://www.uluruinc.com.



    This press release contains certain statements that are forward-looking

within the meaning of Section 27a of the Securities Act of 1933, as

amended, including but not limited to statements made relating to future

financial performance of ULURU Inc. (the "Company"), the expected launch of

our wound dressing product, development of a silver containing product,

impact on cost of the production scale-up, the launch of additional

products, and our expectation that our licensing fees will increase and

offset increased expenses. When used in this press release, the words

"may," "targets," "goal," "could," "should," "would," "believe," "feel,"

"expects," "confident," "anticipate," "estimate," "intend," "plan,"

"potential" and similar expressions may be indicative of forward-looking

statements including without limitation statements relating to the progress

of our technology, pre-clinical results for our products and advantages of

our products and the consummation of the proposed acquisition of Bio Med

Sciences, Inc. These statements by their nature involve substantial risks

and uncertainties, certain of which are beyond the Company's control. Any

forward-looking statement speaks only as of the date on which such

statement is made, and the Company undertakes no obligation to update any

forward-looking statement or statements to reflect events or circumstances

after the date on which such statement is made or to reflect the occurrence

of an unanticipated event. Further, management cannot assess the impact of

each such factor on the business or the extent to which any factor, or

combination of factors, may cause actual results to differ materially from

those contained in any forward-looking statements. These statements are

subject to numerous risks and uncertainties, including but not limited to

the risk factors detailed in the Company's Annual Report on Form 10-KSB for

the year ended December 31, 2007 and other reports filed by us with the

Securities and Exchange Commission.






     Contact: Company

     Kerry P. Gray

     President & CEO

     Terry K. Wallberg

     Vice President & CFO

     (214) 905-5145







    ULURU Inc.

    SUMMARY OF RESULTS



                        STATEMENTS OF OPERATIONS DATA

                                 (Unaudited)



                                 Three Months Ended        Six Months Ended

                                      June 30,                  June 30,

                                 2008         2007         2008         2007

    REVENUES

      License fees            $25,522      $16,831      $39,293     $154,880

      Royalty income           84,772       81,456      160,346      136,918

      Product sales               405          ---      166,878          ---

      Other                   (15,000)      20,501      (15,000)     210,501

      Total Revenues           95,699      118,788      351,517      502,299



    COSTS AND EXPENSES

      Cost of goods sold          119          ---      137,734          ---

      Research and

       development            867,544      553,755    1,742,760    1,119,163

      Selling, general and

       administrative       1,341,235      693,588    2,234,470    1,288,826

      Amortization            269,183      268,630      538,367      534,173

      Depreciation             30,202       17,173       50,474       33,877

      Total Costs and

       Expenses             2,508,283    1,533,146    4,703,805    2,976,039



    OPERATING (LOSS)       (2,412,584)  (1,414,358)  (4,352,288)  (2,473,740)



    Other Income (Expense)

      Interest and

       miscellaneous income    78,888      205,825      203,933      419,630

      Interest expense            ---          ---          ---       (1,574)



    (LOSS) BEFORE INCOME

      TAXES                (2,333,696)  (1,208,533)  (4,148,355)  (2,055,684)



     Income taxes                 ---          ---          ---          ---

    NET (LOSS)            $(2,333,696) $(1,208,533) $(4,148,355) $(2,055,684)







    Basic and diluted net

     (loss) per common

     share                     $(0.04)      $(0.02)      $(0.07)      $(0.03)



    WEIGHTED AVERAGE NUMBER

     OF COMMON SHARES

     OUTSTANDING           62,466,881   61,916,935   62,445,519   61,326,745







                                  ULURU Inc.

              SELECTED CONDENSED CONSOLIDATED BALANCE SHEET DATA



                                            June 30, 2008    December 31, 2007

                                             (Unaudited)          (Audited)



      Cash and cash equivalents              $11,684,039         $13,979,828

      Current assets                          12,536,715          15,536,146

      Property and equipment, net              1,891,882           1,532,881

      Other assets                            10,664,330          11,053,976

      Total assets                            25,092,927          28,123,003



      Current liabilities                      1,432,315           1,389,989

      Long term liabilities - deferred

       revenue                                 1,055,777             495,281

      Total liabilities                        2,488,092           1,885,270

      Total stockholders' equity              22,604,835          26,237,733