Correcting and Replacing Northfield Laboratories Inc. Reports Fiscal 2008 Second Quarter Financial Results

Second table, header should read: Three months ended November 30, 2007 and November 30, 2006 (sted Six months ended November 30, 2007 and November 30, 2006). The corrected release reads: NORTHFIELD LABORATORIES INC. REPORTS FISCAL 2008 SECOND QUARTER FINANCIAL RESULTS Northfield Laboratories Inc. (Nasdaq: NFLD) announced today financial results for the second fiscal quarter ended November 30, 2007. For the second fiscal quarter, Northfield reported a net loss of $5.0 million, or $0.19 cents per share, compared with a net loss of $7.6 million, or $0.28 cents per share for the corresponding period last year. At the close of the quarter, the company reported shareholder’s equity of $36.7 million and $31.4 million in cash and marketable securities. Activities of the Quarter Northfield’s key focus in 2008 is preparing a Biologics License Application (BLA) for PolyHeme for submission to FDA. Our goal is to submit our BLA during the first half of calendar 2008. We also plan to submit a request for priority review of our BLA, as we believe PolyHeme satisfies the stated criteria for priority review based on its potential to address an unmet medical need. An independent panel of experts has reviewed the cardiac data on all patients enrolled in the Phase III trial. The panel is still working on its final analysis, interpretation, and report. Recent and Upcoming Events Scientific Presentations Dr. Ernest E. Moore, lead investigator for Northfield’s Phase III study with PolyHeme, delivered a presentation entitled "Postinjury Resuscitation with Human Polymerized Hemoglobin: The USA Multicenter Trial” at the 93rd Annual Clinical Congress of the American College of Surgeons on October 10, 2007, in New Orleans. Dr. Steven A. Gould was a key speaker and presented the study results at a plenary session at the XI International Symposium on Blood Substitutes in Beijing in October. Northfield will be presenting an overview of its clinical development at the FDA/NIH sponsored Public Workshop on the Safety of Hemoglobin-Based Oxygen Carriers in April. Investor Outreach Northfield presented at the Thomas Weisel Partners Healthcare Conference and the UBS Global Life Sciences Conference in September, and at the BIO Investor Conference in October. Northfield will be presenting at the BIO CEO and Investor Conference in February. Conference Call and Webcast Information Northfield will host a conference call to discuss second quarter financial results on Thursday, January 10, 2008 at 11:00 a.m. ET/10:00 a.m. CT. To access the conference call, investors may dial 800.591.6923. The participant passcode is 76350137. A replay of the call will be available after 1:00 p.m. on January 10 through January 24, 2008, at 888.286.8010. The replay passcode number is 62876164. The webcast is being distributed through the Thomson StreetEvents Network to both institutional and individual investors. Individual investors may listen to the call at http://www.fulldisclosure.com, Thomson/CCBN’s individual investor portal, powered by StreetEvents. Institutional investors may access the call via Thomson’s password-protected event management site, StreetEvents (http://www.streetevents.com). Interested investors may also access the live webcast through the Company’s website, located at www.northfieldlabs.com. About Northfield Laboratories Northfield Laboratories Inc. is a leader in developing an oxygen-carrying red blood cell substitute for the treatment of life-threatening blood loss, when an oxygen-carrying fluid is required and red blood cells are not available. PolyHeme® is a solution of chemically modified human hemoglobin that requires no cross matching and is therefore compatible with all blood types. It has a shelf life in excess of 12 months. For further information, visit www.northfieldlabs.com. This press release may contain forward-looking statements concerning, among other things, Northfield’s future business plans and strategies and clinical and regulatory developments affecting our PolyHeme red blood cell substitute product. These forward-looking statements are identified by the use of such terms as "intends,” "expects,” "plans,” "estimates,” "anticipates,” "should,” "believes” and similar terms. These forward-looking statements involve inherent risks and uncertainties. Our actual results may therefore differ materially from those predicted by the forward-looking statements because of various factors and possible events, including the possibility that since the full data from our Phase III clinical trial have not been submitted to, or reviewed by, FDA, they may not be sufficient to demonstrate the safety or effectiveness of PolyHeme, our ability to successfully file a Biologics License Application, our ability to be granted priority review of our Biologics License Application, our ability to obtain FDA approval to market PolyHeme commercially, the availability of capital to finance our ongoing business operations and the construction of an expanded commercial-scale manufacturing facility, our ability to obtain adequate supplies of raw materials and to manufacture PolyHeme in commercial quantities, our ability to market PolyHeme successfully, the possibility that competitors will develop products that will render PolyHeme obsolete or non-competitive, our ability to protect our intellectual property rights, the outcome of certain governmental inquiries and purported class action lawsuit as described in our most recently filed annual report on Form 10-K, the possibility that we may be subject to product liability claims and other legal actions, our dependency on a limited number of key personnel, the uncertainty of third party reimbursement for our product and other risks and uncertainties described from time to time in our periodic reports filed with the Securities and Exchange Commission, including our most recently filed annual report on Form 10-K. These forward-looking statements speak only as of the date of this press release. We do not undertake any obligation to update or publicly release any revisions to forward-looking statements to reflect events, circumstances or changes in expectations after the time such statement is made. All subsequent written and oral forward-looking statements attributable to Northfield or any person acting on our behalf are qualified by this cautionary statement. TABLES TO FOLLOW   NORTHFIELD LABORATORIES INC. (a company in the development stage)   Balance Sheets November 30, 2007 and May 31, 2007 (In thousands)         Nov 30,       May 31, 2007 2007 Assets (unaudited) Current assets: Cash $ 19,511 $ 23,224 Restricted Cash 1,685 530 Short-term marketable securities 10,188 16,934 Prepaid expenses 604 673 Other current assets 65 213 Total current assets 32,053 41,574   Plant and equipment, net 8,413 8,525 Other assets 20 20 Total assets $ 40,486 $ 50,119     Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 1,313 $ 3,573 Accrued expenses 123 101 Accrued compensation and benefits 661 566 Government grant liability 1,685 530 Total current liabilities 3,782 4,770   Other liabilities 12 7 Total liabilities 3,794 4,777   Shareholders' equity: Capital stock 270 269 Additional paid-in capital 246,056 244,881 Deficit accumulated during the development stage -209,634 -199,808 Total shareholders' equity 36,692 45,342   Total liabilities and shareholders' equity $ 40,486 $ 50,119         NORTHFIELD LABORATORIES INC. (a company in the development stage)   Statements of Operations Three months ended November 30, 2007 and November 30, 2006 (In thousands except per share data)     Three Months Ended Nov 30, Nov 30, 2007 2006 (unaudited) (unaudited)   Revenues - license income $ - $ -   Costs and expenses: Research and development 3,940 5,625 General and administrative 1,482 2,701 5,422 8,326   Other income and expense: Interest income 401 723 Interest expense - - 401 723   Cumulative effect of change in accounting principle   Net loss $ -5,021 $ -7,603   Net loss per basic share $ -0.19 $ -0.28   Shares used in calculation of per share data 26,938 26,800