Osiris Therapeutics Reports Third Quarter EPS of $.14

Osiris Therapeutics, Inc.

announced today its results for the third quarter of fiscal 2010. Net income for the third quarter of 2010 was $4.5 million compared to a loss from continuing operations of $6.8 million in the third quarter of 2009. Revenues were $10.8 million in the third quarter of 2010, consisting primarily of the amortization of license fees from our collaboration agreements. Revenues in the third quarter of 2009 were $10.6 million. As of September 30, 2010, Osiris had $76.5 million of cash, receivables and short-term investments. Recorded net income of $0.14 per diluted common share. Research and development expenses for the third quarter of 2010 were $5.5 million, compared to $16.2 million incurred in the third quarter of 2009. The $10.7 million decrease in R&D expenses reflects the completion of clinical work associated with our Phase 3 clinical trials. General and administrative expenses were $1.3 million for the third quarter of 2010 compared to $1.5 million for the same period of the prior year. Net cash used in continuing operations for the three months ended September 30, 2010 was $8.0 million.