Spherix Reports 2nd Quarter Earnings

    BETHESDA, Md., Aug. 14 /EMWNews/ -- Spherix Incorporated

(Nasdaq: SPEX) reported a net loss for the three and six months ended June

30, 2008 of $1.2 million ($0.08 per share) and $3.1 million ($0.22 per

share). Research and development and marketing costs related to the

commercialization of Naturlose as a treatment for Type 2 diabetes accounted

for approximately $1.9 million for the six month period ended June 30,

2008, compared to approximately $2.4 million for the same period in 2008.

Revenue from the Health Sciences consulting business, which the Company

launched in July 2007, continued its rapid growth with an 80% increase

between the first and second quarter of 2008.



    "The growth of the Health Sciences consulting business has been

phenomenal, and its benefits to the Company reach far beyond its bottom

line contributions," said Spherix's CFO and Treasurer, Robert Clayton. "The

pool of scientific talent the Health Sciences group has added to the

Company has proven to be an invaluable resource in the management of the

BioSpherix Division's clinical trial as well."



    The Company took over full control of the U.S. based Type 2 diabetes

clinical trial from its former Contract Research Organization (CRO) on

March 31, 2008, and has taken quick action to address slower than expected

patient recruitment. These actions include obtaining FDA approval to

eliminate the need for pre-mixed solutions for the delivery of study

medicine, which is expected to increase patient enrollment and enhance

patient compliance.



    Spherix also expanded the Phase 3 clinical trial into India, where

patient enrollment and retention is expected to be greater for Type 2

diabetes trials than in the U.S. The Company has selected a CRO to manage

the India trials and patient recruitment is expected to begin in October of

this year. The Phase 3 clinical trial is expected to be completed in 2010.

Manufacturing of pharmaceutical tagatose is proceeding as planned, and the

tagatose that Inalco SpA committed to supply by August 1, 2008 under the

April 30, 2008 letter of intent was received on time.










                               For the Three Months       For the Six Months

                                  Ended June 30,             Ended June 30,

                                2008           2007       2008          2007

    Revenue from continuing

     operations               $263,000       $4,000     $406,000       $4,000

    Loss from continuing

     operations            $(1,198,000) $(1,942,000) $(3,113,000) $(3,982,000)

    Income (loss) from

     discontinued

     operations                     $-     $196,000           $-     $(54,000)

    Net loss               $(1,198,000) $(1,746,000) $(3,113,000) $(4,036,000)



    Net (loss) income per

     share

     Continuing operations      $(0.08)      $(0.14)      $(0.22)      $(0.28)

     Discontinued operations        $-        $0.01           $-           $-

     Net (loss) income

      per share                 $(0.08)      $(0.12)      $(0.22)      $(0.29)





    Certain statements contained herein are "forward looking" statements as

defined in the Private Securities Litigation Reform Act of 1995. Because

such statements include risks and uncertainties, actual results may differ

materially from those expressed or implied. Factors that could cause actual

results to differ materially from those expressed or implied include, but

are not limited to, those discussed in filings by the Company with the

Securities and Exchange Commission, including the filing on Form 8-K made

on October 10, 2007.



    Spherix's mission is to create value and increase shareholder wealth

through innovations that benefit our clients and the human condition.

Spherix offers innovations in biotechnology, and provides technical and

regulatory consulting services to biotechnology and pharmaceutical

companies.



    Spherix's Internet address is http://www.spherix.com.