Echo Therapeutics Reports Third Quarter 2007 Results



    Completion of Strategic Acquisition Reflected in Q3 Results

    FRANKLIN, Mass., Nov. 20 /CNW/ -- Echo Therapeutics, Inc. (OTC Bulletin
Board: ECTE) today announced financial results for the third quarter ended
September 30, 2007. For the quarter ended September 30, 2007, net loss was
$8,677,000 or $.70 per share, compared to $1,390,000 or $.49 per share, for
the same period in 2006. For the nine months ended September 30, 2007, net
loss was $10,278,000, or $1.05 per share, compared to $4,229,000 or $1.60 per
share, for the same period in 2006. Net loss for the three and nine months
ended September 30, 2007 included purchased research and development of
$6,556,000 in connection with the strategic acquisition of Echo Therapeutics,
Inc. as described in more detail below.
    Cash and short term investments totaled $2,218,000 at September 30, 2007,
compared to $559,000 at December 31, 2006.

    Recent Highlights

    The quarter was highlighted by the merger of Sontra Medical Corporation
with Echo Therapeutics, Inc. and the surviving Company's name change to Echo
Therapeutics, Inc. The merger created a dual platform-enabled transdermal
therapeutics and diagnostics company focused on multiple large markets for
improved formulations of specialty pharmaceuticals and new applications of
next generation transdermal diagnostics for diabetes management and hospital
intensive care markets. Echo Therapeutics is now marked by the following key
attributes and capabilities:

    
    -  Two transdermal drug penetration technologies, with emphasis on
       development and commercialization advanced reformulations of
       well-established, FDA-approved products using Echo's AzoneTS dermal
       penetration enhancement technology in concert with a 505(b)(2)
       regulatory strategy and development of a next generation wireless,
       needle-free, continuous transdermal glucose monitor system for the
       diabetes home use and hospital intensive and critical care markets;
    -  Diverse, late-stage specialty therapeutics and diabetes management
       device pipeline with one FDA-approved product, a therapeutic
       dermatology product candidate covered by a pending NDA filed with the
       FDA and ten (10) product development programs;
    -  Flexible, strategic partnership with Cato Research, an established
       global contract research organization (CRO), to maximize development
       and regulatory efficiencies; and,
    -  Expertise from Cato Research to expand the reach of ongoing late-stage
       clinical development programs in continuous transdermal glucose
       monitoring.
    

    About Echo Therapeutics

    Echo Therapeutics is a dual platform-enabled, specialty therapeutics and
diagnostics company developing an extensive pipeline of advanced topical
reformulations of FDA-approved products and a portfolio of next generation
wireless, needle-free continuous transdermal glucose monitor (CTGM) systems
for the diabetes home use and hospital intensive and critical care markets.
Echo is also developing a broad portfolio of advanced topical reformulations
of well-established, FDA-approved products using its proprietary AzoneTS(TM)
dermal penetration technology. Echo has submitted a New Drug Application (NDA)
to the FDA for the approval of its lead AzoneTS-based product, Durhalieve(TM),
for the treatment of corticosteroid responsive dermatoses. Echo's next
generation CTGM system leverages its FDA-approved SonoPrep(R)
ultrasound-mediated skin permeation technology platform.

    SonoPrep is a registered trademark of Echo Therapeutics, Inc.

    Any statements contained in this press release that do not describe
historical facts may constitute forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995. Any
forward-looking statements contained herein are based on current expectations,
but are subject to a number of risks and uncertainties. The factors that could
cause actual future results to differ materially from current expectations
include, but are not limited to risks and uncertainties relating to our
ability to develop, market and sell pharmaceutical or diagnostic products
based on our AzoneTS and CTGM technologies, including AzoneTS-based Durhalieve
for corticosteroid responsive dermatoses and the use of our SonoPrep
ultrasound-mediated skin permeation technology platform with our CTGM system
for the diabetes home use and hospital intensive and critical care markets;
the success of our AzoneTS and CTGM business, research, development, and
regulatory approval, marketing and distribution plans and strategies; and, our
ability to raise sufficient capital in the future to fund our research and
development programs, commercialize our product candidates and achieve
profitability. These and other factors are identified and described in more
detail in our filings with the SEC, including, without limitation, our
respective annual reports on Form 10-KSB for the year ended December 31, 2006,
our most recent quarterly reports on Form 10-QSB, and our current reports on
Form 8-K. Echo Therapeutics, Inc. does not undertake to update these forward-
looking statements.

    Investor Relations Contacts:

    
    Patrick T. Mooney, M.D., CEO
    508-530-0329
    pmooney@echotx.com


    10 Forge Parkway
    Franklin, MA 02038, USA
    Tel: 1+ 877-476-6878
    Fax: 1+ 508-553-8760
    www.echotx.com

    All rights reserved worldwide.



                           Echo Therapeutics, Inc.
                    (Formerly Sontra Medical Corporation)
                         Consolidated Balance Sheets



                                                          As of,
                                             September 30,    December 31,
                                                  2007            2006
                                               (Unaudited)
    Assets:
    Current Assets:
      Cash and cash equivalents                 $2,218,246       $559,017
      Inventory, net of reserve for
       obsolescence                                      -          1,556
      Prepaid expenses and
       other current assets                         74,484         12,994
        Total current assets                     2,292,730        573,567

    Property and Equipment, at cost:
      Computer equipment                           248,272        245,694
      Office and laboratory equipment              590,926        590,926
      Furniture and fixtures                        14,288         14,288
      Manufacturing equipment                      197,888        197,888
      Leasehold improvements                       177,768        177,768
                                                 1,229,142      1,226,564
      Less-Accumulated depreciation and
       amortization                             (1,105,441)    (1,017,051)
        Net property and equipment                 123,701        209,513

    Other Assets:
      Restricted cash                               10,250         19,949
      Deposits and other assets                      2,000          2,000
      Intangible assets, net                    10,420,000              -
        Total other assets                      10,432,250         21,949
        Total assets                           $12,848,681       $805,029


    LIABILITIES AND STOCKHOLDERS' EQUITY


    Current Liabilities:
      Accounts payable                            $363,057        $45,817
      Deferred revenue                               8,333         45,833
      Current portion of notes payable,
       net of unamortized discount                  55,208         89,808
      Accrued  expenses                            488,650        103,365
       Total current liabilities                   915,248        284,823


    Notes Payable, net of current portion                -         54,508

    Commitments


    Stockholders' Equity
      Series A Convertible Preferred Stock,
       $0.01 par value, authorized
       7,000,000 shares, issued and
       outstanding no shares at
       September 30, 2007 and 73,334
       shares at December 31, 2006                       -         76,291


      Common stock, $0.01 par value,
       authorized 60,000,000 shares,
       issued and outstanding
       17,707,679 shares at September
       30, 2007 and 2,776,192  shares
       at December 31, 2006                        177,079         27,762
      Additional paid-in capital                56,494,899     34,822,306
      Accumulated deficit                      (44,738,545)   (34,460,661)
        Total stockholders' equity              11,933,433        465,698


        Total liabilities and
         stockholders' equity                  $12,848,681       $805,029



                           Echo Therapeutics, Inc.
                    (Formerly Sontra Medical Corporation)
                    Consolidated Statements of Operations
                                 (Unaudited)

                                Three Months Ended         Nine Months Ended
                                   September 30,              September 30,
                                 2007        2006           2007        2006
    Revenue:
      Product revenues         $    -      $10,679       $12,120      $37,619
      Licensing revenue        12,500       12,500        37,500       37,501
        Total revenue          12,500       23,179        49,620       75,120

    Operating Expenses:
      Cost of product
       revenue                      -        9,445         1,556       61,734
      Research and
       development            323,078      803,754       923,172    2,489,996
      Purchased research
       and development      6,556,048            -     6,556,048            -
      Selling, general
       and administrative   1,767,587      622,518     2,812,002    1,843,534
    Total operating
     expenses               8,646,713    1,435,717    10,292,778    4,395,264

    Loss from operations  (8,634,213)  (1,412,538)  (10,243,158)  (4,320,144)
    Other income (Expense):
    Interest income           21,657       28,604        35,563      109,687
    Interest expense         (64,131)      (4,469)      (70,289)     (14,439)
      Other income, net      (42,474)      24,135       (34,726)      95,248
      Net loss            (8,676,687)  (1,388,403)  (10,277,884)  (4,224,896)
    Accretion of dividend on
     Series A Convertible
     Preferred Stock               -       (1,479)         (483)      (4,389)
    Net loss applicable
     to common
     shareholders        $(8,676,687) $(1,389,882) $(10,278,367) $(4,229,285)

    Net loss per common share,
     basic and diluted        $(0.70)      $(0.49)       $(1.05)      $(1.60)

    Basic and diluted weighted
     average common shares
      outstanding         12,438,201    2,839,201     9,771,183    2,640,691
    




For further information:

For further information: Patrick T. Mooney, M.D., CEO of Echo
Therapeutics, Inc., (508) 530-0329, pmooney@echotx.com, Web Site:
http://www.sontra.com

Organization Profile

ECHO THERAPEUTICS, INC.

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