As new directors, Mr. Bruce and Dr. Tomsche were each granted non-qualified stock options to purchase 15,000 shares of common stock under the Company's 2000 Stock Option and Incentive Plan, on terms similar to those previously granted to other outside directors. The options have an exercise price equal to the fair market value of the common stock on the date of grant ($5.80 per share), and vest in three equal increments if and when re-elected to the Board in 2007, 2008 and 2009. Each option expires if not exercised within five years after the date of grant or, if earlier, within three months (twelve in cases of death or disability) after termination of service as a director. Mr. Bruce and Dr. Tomsche will also be entitled to receive the Company's standard annual retainer and meeting attendance fees for outside directors.

The Company's press release announcing the election of Mr. Bruce and Dr. Tomsche as directors is attached as Exhibit 99.1 to this Current Report on Form 8-K. The information contained in the press release shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act (the "Exchange Act") or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.