Senesco Technologies, Inc. ("Senesco" or the "Company") (AMEX:SNT) reported financial results for the three months ended March 31, 2004.

The net loss for the third quarter of fiscal 2004 was $417,011, or $0.03 per share, compared with a net loss of $515,683, or $0.04 per share, for the comparable period in fiscal 2003. The decrease in net loss was due primarily to a one-time recording of other non-cash income, which was partially offset by an increase in research and development expense.

Revenue for the third quarter of fiscal 2004 was $4,167, while other non-cash income was $185,627. Other non-cash income was recognized as a result of accounting for a potential liability that was associated with the Company's obligation to file a registration statement for the underlying shares covering the warrants issued in the private placement recently completed by the Company. The liability was eliminated when the Company timely filed the registration statement on March 17, 2004. The Company did not report any revenue or other non-cash income in the comparable period in fiscal 2003.

Research and development expenses for the three months ended March 31, 2004 were $320,559, compared with $237,687 for the three months ended March 31, 2003. The increase of $82,872, or 34.9%, was attributable primarily to higher costs incurred in connection with the expanded research undertaken by the Company's program at the University of Waterloo and other institutions and the implementation of the Company's human health research programs, as well as an increase in stock-based compensation related to the vesting of previously issued stock options granted to certain research consultants.

General and administrative expenses, inclusive of stock-based compensation, for the third quarter of fiscal 2004 were $294,125, down slightly from $294,403 for the comparable period in fiscal 2003.

At March 31, 2004, Senesco had cash, cash equivalents and short-term investments of approximately $4.6 million and working capital of approximately $4.1 million.

Recent Corporate Highlights

In March 2004, Senesco announced that it signed a Development and License Agreement with The Scotts Company, which will enable the two companies to incorporate Senesco's proprietary Factor 5A and DHS technology into a variety of garden plants, bedding plants and turfgrasses. The agreement called for upfront payments, milestones and royalties.

Also during the quarter, in January and February 2004, Senesco announced that it completed private placements of approximately 1,540,000 units at $2.37 per unit, comprised of one share of newly issued common stock and a warrant to purchase 0.50 of a share of common stock at an exercise price of $3.79 to institutional and other accredited investors. Aggregate proceeds to the Company were approximately $3,650,000.

Recent Research and Development Highlights

In April 2004, Senesco announced that a company-funded preclinical study showed that its proprietary gene, Eukaryotic Translation Initiation Factor 5A1 ("Factor 5A1"), which is the death isoform of Factor 5A, induced cell death in lung cancer tumors of mice. The Company conducted this study using mice with the same genetic defect that causes lung cancer in humans, which caused the mice to spontaneously develop lung tumors. Factor 5A1 was injected into the blood stream of the mice and the lung tissue was subsequently analyzed for apoptosis. The data show that the lung tumor cells were specifically targeted to undergo cell death while the surrounding healthy tissue was unaffected. There was no evidence of systemic toxicity in the mice as evidenced by no weight loss, mortality or any signs of abnormal apoptosis in any of the vital organs.

Senesco takes its name from the scientific term for the aging of plant cells: senescence. The Company has developed technology that regulates the onset of cell death. Delaying cell breakdown in plants extends freshness after harvesting, while increasing crop yields, plant size and resistance to environmental stress for flowers, fruits and vegetables. The Company believes that its technology can be used to develop superior strains of crops without any modification other than delaying natural plant senescence. Senesco has begun to explore ways to trigger or delay cell death in mammals (apoptosis) to determine if the technology is applicable in human medicine. Accelerating apoptosis may have applications to development of cancer treatments. Delaying apoptosis may have applications to certain diseases such as Alzheimer's, glaucoma, ischemia and arthritis, among others. Senesco partners with leading-edge companies and earns research and development fees for applying its gene-regulating platform technology to enhance its partners' products. Senesco is headquartered in New Brunswick, and utilizes research laboratories at the University of Waterloo in Ontario, Canada, and the University of Colorado in Denver, as well as other institutions.