Star Scientific File Annual Financial Report

Source from:  PRNewswire 03/18/2009

Star Scientific, Inc. (Nasdaq: STSI) filed its Annual Report on Form 10-K today with the Securities and Exchange Commission. The company reported 2008 net sales of $0.5 million, which essentially were unchanged from net sales for 2007. However, volume sales of the company's two dissolvable smokeless tobacco products, Ariva(R) and Stonewall(R), increased 7.8% in 2008 compared to 2007. The wholesale price for 20-piece packages of the products was increased $.10 effective January 1, 2009. Star reported a net loss for 2008 of $18.3 million compared to the 2007 net loss of $41.5 million. The 2007 net loss included a $27.0 million loss from the sale of the interest stream and reversionary interest in the company's MSA escrow accounts, in addition to an operating loss of $17.1 million that was partially offset by a gain of $3.6 million on the sale of 990 tobacco curing barns. Star reported cash and cash equivalents totaling $6.5 million at year-end 2008 as compared to $8.9 million at year-end 2007. In addition the company reported that between January 1 and early March, 2009, it had raised approximately $14.0 million in cash through the exercise of outstanding warrants and stock options. As the company noted in a January 6, 2009 press release, its Rock Creek Pharmaceuticals subsidiary recently completed a study to determine the ability of Stonewall(R) dissolvable smokeless tobacco to relieve cigarette withdrawal symptoms when compared to an over-the-counter nicotine replacement product (NRT). Rock Creek applied to have the study results included in an abstract submission at the Society for Research in Nicotine and Tobacco (SRNT) -- Europe Conference to be held in Dublin, Ireland in April 2009, and was recently notified that the submission has been accepted. An abstract on lung cancer death rates that previously had been submitted and accepted also will be presented by Rock Creek at the conference. Enditem