Star Scientific, Inc. Files Third-Quarter 10-Q Reporting on Financial Results, Continued Expansion of Anatabloc® Dietary

Star Scientific, Inc. Files Third-Quarter 10-Q Reporting on Financial Results,
 Continued Expansion of Anatabloc® Dietary Supplement Sales, and IRB Approval
           for a Clinical Trial Relating to Anatabloc® Facial Creme

PR Newswire

GLEN ALLEN, Va., Nov. 9, 2012

GLEN ALLEN, Va., Nov. 9, 2012 /PRNewswire/ --Star Scientific, Inc. (NASDAQ:
STSI) today filed its third-quarter 2012 financial report on Form 10-Q with
the Securities and Exchange Commission. The Company reported net sales
totaling $1.7 million for the three months ended September 30, 2012, compared
with net sales of $0.4 million for the same period in 2011. Net sales for the
nine months ended September 30, 2012, totaled $4.5 million, compared with $0.8
million for the same period in 2011. The 450% increase in net sales for the
nine months ended September 30, 2012, compared with the nine month period in
2011, was due to an increase in the sales of Anatabloc®, the Company's dietary
supplement that is designed to support the immune system in maintaining
healthy levels of inflammation. Anatabloc®, which was introduced in August
2011, is now available at approximately 4,000 GNC stores (3,000 corporate and
1,000 franchise stores) located in all fifty states. Anatabloc® can also be
ordered online at www.anatabloc.com.

(Logo: http://photos.prnewswire.com/prnh/20120301/NE62741LOGO )

Gross profits totaled $0.2 million for the three months ended September 30,
2012, compared with a gross loss of ($1.1) million for the same period in
2011, an improvement of $1.3 million. Gross profits totaled $0.9 million for
the nine months ended September 30, 2012, compared with a gross loss of ($1.7)
million for the same period in 2011, representing an increase of $2.6 million.

The Company reported a net profit of $0.4 million for the three months ended
September 30, 2012, compared with a net loss of ($6.6) million for the same
period in 2011. The net loss for the nine months ended September 30, 2012,
totaled ($12.8) million compared with a net loss of ($17.6) million for the
same period in 2011. Net profits during the three month and nine month
periods ended September 30, 2012, included miscellaneous income recognized in
the third quarter in connection with the resolution of the Company's
litigation matters with RJ Reynolds Tobacco Company.Other material
information relating to the global resolution of the RJR litigation matters
can be found in the Company's report on Form 10-Q.

On August 6, 2012, the Company changed its NASDAQ ticker symbol to STSI in
order to emphasize the Company's broadening health-related mission to develop
and manufacture a variety of products that assist in maintaining a healthy
metabolism and lifestyle, as well as providing anti-inflammatory support. One
such product, Anatabloc® Rare Cellular Facial Creme, was introduced in
September 2012, as a cosmetic designed to help improve the appearance of the
skin and reduce the appearance of redness. The Company recently received IRB
approval to conduct a multi-site clinical (human) study of this product for
the purpose of determining whether Anatabloc® Rare Cellular Facial Creme is
helpful to individuals with mild to moderate rosacea. The three sites where
the clinical trial will be conducted are: Bradenton, Florida; New York City,
New York; and New Orleans, Louisiana. The clinical trial will be supervised
by Dr. Susan H. Weinkle, President of the American Society for Dermatologic
Surgery, and an experienced and respected practitioner and clinical
investigator. The facial cream is available online at www.anatabloc.com and
promoted through select dermatology practices.

In August, working in conjunction with the Roskamp Institute, the Company
began enrolling subjects in a clinical (human) study to analyze the effects of
supplementation with Anatabloc® in individuals with mild to moderate
Alzheimer's disease. As of November 8, 2012, that study, which is being
conducted at the Roskamp Institute, has enrolled twenty-two subjects. The
Company also recently updated the status of its ASAP Thyroid Study, its
"Flint" CRP study, and in August, reported the issuance of a new patent
(Patent No. 8,241,680) for an anatabine and yerba mate composition that
assists in weight loss and curbing the urge to use tobacco.

Paul L. Perito, Chairman, President, and COO of Star Scientific commented, "We
are pleased with the robust Anatabloc® sales, which have grown quarter to
quarter. We are equally buoyed by the fact that because there is a GNC
corporate or franchise store (approximately 4,000 nationwide) within five
miles or less of 95% of all Americans, access to Anatabloc® is now literally
within the reach of every American. Our iconic Brand Ambassador, professional
golfer Fred Couples, continues to be featured in radio and TV advertising
nationwide, personalizing the message of Anatabloc®'s worthiness to those
embracing a healthy and active lifestyle."

Certain statements contained in this release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. Such statements include, but are not limited to statements identified
by words such as "believes," "expects," "anticipates," "estimates," "intends,"
"plans," "targets," "projects" and similar expressions. The statements in this
release are based upon the current beliefs and expectations of our company's
management and are subject to significant risks and uncertainties. Actual
results may differ from those set forth in the forward-looking statements.
Numerous factors could cause or contribute to such differences, including, but
not limited to, results of clinical trials, the challenges inherent in new
product development initiatives, including the continued development and
market acceptance of our nutraceutical and low-TSNA tobacco products, our
ability to license and protect our intellectual property, our ability to raise
additional capital in the future that is necessary to maintain our business,
changes in government policy and/or regulation, including with respect to our
nutraceutical and low-TSNA tobacco products, as well as other risks discussed
from time to time in our filings with the Securities and Exchange Commission,
including, without limitation, our annual report on Form 10-K for the fiscal
year ended December 31, 2011. We undertake no duty to update any
forward-looking statement or any information contained in this press release
or in other public disclosures at any time.

About Star Scientific
Star Scientific, Inc. is a technology-oriented company with a mission to
promote maintenance of a healthy metabolism, as well as to reduce the harm
associated with the use of tobacco at every level. Over the last several
years, through its wholly owned subsidiary, Rock Creek Pharmaceuticals, Star
Scientific has been engaged in the manufacturing, sale, and marketing of two
nutraceutical dietary supplements, and the development of other nutraceuticals
and pharmaceuticals. The company also has continued to pursue the development,
implementation, and licensing of the technology behind its proprietary
StarCured® tobacco curing process, which substantially prevents the formation
of carcinogenic toxins present in tobacco and tobacco smoke, primarily the
tobacco-specific nitrosamines, or TSNAs and related low-TSNA dissolvable
tobacco products. Rock Creek Pharmaceuticals has scientific and research
offices in Gloucester, MA, and a regulatory office in Washington, DC. Star
Scientific has a Corporate and Sales Office in Glen Allen, VA; Executive,
Scientific & Regulatory Affairs offices in Bethesda, MD, and Washington, DC;
and a manufacturing facility in Chase City, VA.

Contact:
Talhia T. Tuck
Vice President, Communications and Investor Relations
Star Scientific, Inc.
(202)887-5100
ttuck@starscientific.com

SOURCE Star Scientific, Inc.

Website: http://www.starscientific.com
 
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