Accentia Biopharmaceuticals Reports Fiscal Second Quarter Financial Results

Business Wire, May 16, 2008

Company to Present at Jefferies Healthcare Conference

TAMPA, Fla. -- Accentia Biopharmaceuticals, Inc. (NASDAQ:ABPI) announced today that the Company has filed its Quarterly Report (Form 10-Q) with the SEC, reporting the results of its operations, including consolidated results with its majority-owned subsidiary, Biovest International, Inc. (OTCBB:BVTI), for its second fiscal quarter ended March 31, 2008. The Company also announced that it is scheduled to present at the Jefferies & Co. 2nd Annual Healthcare Conference in New York City.

Accentia's Chairman and CEO, Dr. Frank E. O'Donnell Jr., will present at the Jefferies Healthcare Conference on June 25, 2008, at 2:30 p.m. (EDT) at the Mandarin Oriental Hotel in New York City. Dr. O'Donnell commented on the Company's pending milestones leading up to the Conference, "I believe we are on the verge of reporting a series of near-term achievements for SinuNase[TM], BiovaxID[R] and Revimmune[TM], and we are striving to be able to report multiple accomplishments prior to the Jefferies Conference, including possible new corporate collaborations, which I envision will dramatically contribute to our growth."

If qualified investors are interested in meeting with Dr. O'Donnell at the Jefferies & Co. Healthcare Conference, please contact Douglas Calder at 813-864-2558 or at dwcalder@accentia.net.

Financial Review:

Accentia has two operating segments consisting of specialty pharmaceuticals (Accentia Pharmaceuticals) and product development and market services (Analytica International). Accentia also has an approximate 76% interest in Biovest International, Inc. (OTCBB:BVTI), which is consolidated for reporting purposes with Accentia's product development and market service business.

On a fully consolidated basis, including Biovest, net revenues for the three months ended March 31, 2008 were $4.2 million, compared with $4.6 million for the same period ended March 31, 2007. Although revenues for our Analytica subsidiary improved, the overall decrease in net revenues was primarily attributed to a decrease in net sales in our Specialty Pharmaceuticals segment primarily due to the discontinuance of our Respi-Tann G product line.

Consolidated research and development costs were $2.7 million for the second fiscal quarter, compared with $5.5 million for the same fiscal quarter in 2007. This 52% decrease was largely due to our Biovest subsidiary reducing research and development expenses as its clinical trial costs have declined considerably, as a result of our decision, based on the independent Data Monitoring Committee's recommendation, to stop the BiovaxID Fast-Tracked Phase 3 study early, and seek accelerated and/or conditional approval with the U.S. Food and Drug Administration (FDA) and European regulatory authorities. There was also a decrease in SinuNase research and development expenses due to the near completion of its Fast-Tracked Phase 3 clinical trial, which demonstrated statistically significant objective evidence based on secondary endpoint analysis measuring the most severe cases of polyposis and inflammation.

Accentia's second quarter net loss, on a fully consolidated basis, including Biovest, was $8.3 million, compared to $8.0 million reported for the same three month period in fiscal 2007. Of this loss, approximately $1.9 million was due to non-cash charges.

The fully consolidated loss per share for the quarter was $0.20, of which $0.10 per share was attributed to Biovest, which is consolidated in Accentia's financial statements. Since February 2007, Biovest has been self-funded. For the comparable 2007 quarter, the fully consolidated loss per share was $0.25, of which $0.17 per share was attributed to Biovest. The Company notes that the operating loss for Biovest has been substantially reduced in part due to Biovest's decision, based on the independent Data Monitoring Committee's recommendation, to stop the BiovaxID Fast-Tracked Phase 3 study early, and seek accelerated and/or conditional approval with the FDA and European regulatory authorities.

At March 31, 2008, Accentia had approximately $1.5 million in cash, excluding restricted cash. Subsequent to March 31, 2008, Biovest raised $1 million through the issuance of a convertible promissory note subscribed to by one of the Company's directors. With the recent news related to positive Phase 3 objective results reported for SinuNase and the pending unblinding of the BiovaxID Phase 3 results, Accentia and Biovest are currently evaluating financing opportunities, including potential partnering and licensing agreements which are expected to be significant commercial events, providing access to additional sources of capital.

Accentia also reported on plans to resolve its NASDAQ compliance issue, as the Company is non-compliant with Rule 4450(b)(1)(A), which requires a listed security to maintain a minimum $50 million market capitalization for continued trading on the NASDAQ Global Market. To resolve this matter, the Company has filed an application to transfer the listing of the Company's common stock from the NASDAQ Global Market to the NASDAQ Capital Market. The Company filed the application on May 15, 2008 and expects to maintain its current NASDAQ Global Market status pending completion of the transfer application.