Interleukin Genetics, Inc. (Interleukin), a in vitro diagnostics company, has reported total revenues of $10 million for the full year of 2008, compared with the total revenues of $9.7 million in the previous year-end. It has also reported a net loss of $6.7 million, or $0.21 loss per share, for the full year of 2008, compared with the net loss of $6.2 million, or $0.22 loss per share, in the previous year-end.

“In 2008, we put an experienced staff in place to establish the company as a market leader in personalized healthcare and focus our business strategy on increasing revenue from our intellectual property,” said Lewis H. Bender, chief executive officer. “During the past year, we achieved milestones in several critical areas that support our longer term goals of increasing genetic test and consumer product sales, as well as forming new partnerships.”

2008 and Recent Highlights

Presented Important New Osteoarthritis Data. Interleukin Genetics, Inc. Chief Scientific Officer Kenneth Kornman presented research findings on the genetics of osteoarthritis at the Osteoarthritis Research Society International (OARSI). The research highlighted the clinical utility of an osteoarthritis genetic test for both guiding the medical management of high risk patients and future use and development of related therapies.

Expanded Distribution Networks. Interleukin Genetics, Inc. and Alticor, Inc. reached an agreement on its intellectual property that permits the expansion of Interleukin Genetics’ distribution network for certain genetic tests.

Established Important New Clinical Partnerships. Interleukin Genetics, Inc. partnered both with Geisinger clinic in 2008 to analyze DNA samples from over 800 morbidly obese patients in effort to develop a genetic test for bariatric surgery candidates, as well as with Oral DNA to sell our PSTtest.

Awarded for Industry Research. Interleukin Genetics, Inc. received the 12th John M. Kinney Award for Nutrition and Metabolism at the annual Congress of the European Society of Parenteral and Enteral Nutrition. The award was given for the paper, “Interleukin-1 genotype-selective inhibition of inflammatory mediators by a botanical: a nutrigenetics proof of concept,” which was published in Nutrition: The International Journal of Applied and Basic Nutritional Sciences.

Enhanced company Leadership. Throughout 2008, Interleukin Genetics, Inc. enhanced its management team with the addition of a new chief financial officer, vice president of marketing, senior business development executive, and staffed other critical positions in research and development, public relations, human resources, laboratory management and computer and information technology.

The revenue increase is primarily attributable to growth in consumer product revenue in combination with increased royalty and contract research revenue offset by a slight decrease in genetic testing revenue.

Research and development expenses were $3.6 million for the year ended December 31, 2008 compared to $2.9 million for the year ended December 31, 2007. The increase is attributable to expenses relating to the company’s sponsored research agreement with Yonsei University, as well as additional expenses relating to our patent portfolio.

Selling, general and administrative expenses were $7.0 million for the year ended December 31, 2008 compared to $6.4 million for the prior year. The increase is primarily attributable to increased promotional and advertising expenses as well as increased expenses due to additional headcount.

Fourth Quarter Results

Revenue for the three months ended December 31, 2008, was $2.7 million compared to $2.3 million for the same period in 2007. The increase is primarily due to increased research revenue and an increase in royalty revenue offset by a decrease in genetic testing revenue compared to the same period last year.

Research and development expenses were $1.1 million for the quarter ended December 31, 2008, compared to $682,000 for the same period in 2007. The increase was primarily due to expenses relating to our expanded research programs in the areas of osteoarthritis, obesity, sports medicine and osteoporosis.

Selling, general and administrative expenses were $1.6 million for the three months ended December 31, 2008, compared to $1.5 million for the quarter ended December 31, 2007. The increase is primarily due to increased promotional and advertising expenses across both segments of the company’s business as well as increased expenses due to additional headcount.

The company reported a net loss of $1.5 million, or $(0.05) per basic and diluted common share, for the fourth quarter of 2008, which was consistent with the same period in the prior year. On December 31, 2008, the company reported cash and cash equivalents of $5.0 million compared to $7.6 million of cash and cash equivalents on December 31, 2007. In addition, the company has access to $10.3 million under credit facilities with Alticor now extended through March 2010.

“We see an exciting and evolving market opportunity for the services and technology Interleukin Genetics can offer. We believe the needs of pharmaceutical and biotechnology companies to boost innovation and development success will enhance the market for molecular diagnostic tools,” continued Bender. “As such, we will continue our focus for 2009 on developing genetic tests for chronic diseases that can provide meaningful value for drug developers, while further exploring exciting areas of new research that resonate with consumers.”