Investor Relations Media Relations Bernie Hertel Ronald Trahan Phone: (858) 410-3101 Phone: (508) 359-4005, x108 DNA Vaccine Company Inovio Biomedical Reports Third Quarter 2008 Financial Results

DIEGO, CA November 7, 2008 Inovio Biomedical Corporation (AMEX: INO) ( Inovio )

today reported financial results for the three and nine months ended September 30,

Total revenue for the three

and nine months ended September 30, 2008, was $455,000 and $1.8 million,

respectively, as compared to $487,000 and $1.5 million, respectively, for the

same periods in 2007. Revenue consisted of license fees, milestone payments,

revenue recognized from collaborative research and development arrangements and

Total operating expenses for

the three and nine months ended September 30, 2008, were $3.2 million and

$12.0 million, respectively, as compared to $5.5 million and $15.6 million,

respectively, for the three and nine months ended September 30, 2007.

The net loss attributable to

common stockholders for the three and nine months ended September 30,

2008, was $2.3 million, or $0.05 per share and $9.4 million, or $0.21 per

share, respectively, as compared with a net loss attributable to common

stockholders of $2.7 million, or $0.06 per share and $10.2 million, or $0.25

per share, respectively, for the three and nine months ended September 30,

from license fees and milestone payments was $215,000 and $612,000, for the

three and nine months ended September 30, 2008, respectively, as compared

to $137,000 and $581,000, for the three and nine months ended September 30,

2007, respectively. The increase in revenue under license fees and milestone

payments for the three and nine month periods ended September 30, 2008,

compared with the same periods in 2007, was mainly due to higher revenue

recognized from various smaller license agreements, offset by less revenue

recognized from the Merck licensing agreement as this agreement was fully

amortized during 2007. Revenue recognized from the Wyeth license agreement was

consistent with prior periods.

from collaborative research and development arrangements during the three and

nine months ended September 30, 2008, was $240,000 and $1.2 million, respectively,

as compared to $266,000 and $800,000, respectively, for the same periods in

2007. This decrease in revenue for the three months ended September 30,

2008, compared with the same period in 2007, was primarily due to a decrease in

Merck billings based on timing of efforts related to our collaborative research

agreement. The increase in revenue for the nine months ended September 30,

2008, compared with the same period in 2007, was primarily due to an increase

in Wyeth billings based on our collaborative agreement, offset by slightly

lower Merck collaborative research billings. Billings from research and

development work performed pursuant to the Wyeth and Merck agreements are

recorded as revenue when the related research expenditures are incurred.

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was no grant and miscellaneous revenue for the three and nine months ended September 30,

2008, compared with $84,000 and $105,000, respectively, for the three and nine

months ended September 30, 2007. The decrease in grant and miscellaneous

revenue was due to no revenue being recognized from the U.S. Army grant due to

completion of the defined project. On September 26, 2008, we received a

new contract for $933,000 from the Department of Defense (U.S. Army) to

continue research and development of DNA-based vaccines delivered via our

proprietary electroporation system.

Research and development

expenses for the three and nine months ended September 30, 2008, were $1.3

million and $4.6 million, respectively, as compared to $2.3 million and $7.8

million for the three and nine months ended September 30, 2007,

respectively. The decrease in research and development expenses for the three

and nine months ended September 30, 2008, compared with the same periods

in 2007, was primarily due to a decrease in SECTA clinical trial expenses

associated with patient enrollment, clinical site costs, data collection and

monitoring costs, and costs related to the use of outside Clinical Research

Organizations ( CROs ) and Clinical Research Associates ( CRAs ). Additional

decreases are associated with less consulting and advisory services received,

offset by higher costs associated with the expansion of our in-house

engineering and research expertise.

and administrative expenses, which include business development expenses and

amortization of intangible assets, were $1.9 million and $7.4 million for the

three and nine months ended September 30, 2008, respectively, as compared

to $3.2 million and $7.8 million for the three and nine months ended September 30,

2007, respectively. The decrease in general and administrative expenses for the

three and nine months ended September 30, 2008, as compared to the

comparable periods in 2007, was mainly due to a decrease in outside consulting

and advisory services related to partnering our SECTA therapy program as well

as a decrease in employee stock-based compensation expense, offset by increased

legal fees related to the execution of the definitive merger agreement with VGX

as well as other corporate matters.

Net Loss Attributable to Common

The decrease in net loss

attributable to common stockholders for the nine months ended September 30,

2008, compared with the same period in 2007, resulted primarily from the

increase in collaborative research and development revenue and the decrease in

operating expenses, as described above.

ended the third quarter of 2008 with cash and short-term investments of $6.4

million and working capital of $3.4 million, compared with $27.3 million in

cash and short-term investments and $25.6 million in working capital as of December 31,

2007. The decrease in working capital during the nine months ended September 30,

2008, was primarily due to the reclassification of $12.1 million of auction

rate security ( ARS ) investments from short-term to non-current assets. The

remaining decrease in working capital was primarily due to expenditures related

to our research and development and clinical trial activities, as well as

various general and administrative expenses related to consultants, legal,

accounting and audit, corporate development, and investor relations activities.

With respect to the ARS

investments, we originally purchased six high-grade ARSs, issued primarily by

municipalities, for approximately $13.6 million. In March 2008, our

investment advisor informed us that decreased market liquidity for this type of

security caused the valuation of these investments to fall below par. As a

result of this market illiquidity, as of September 30, 2008, $12.1 million

of these investments were recognized on our consolidated balance sheet as