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Exhibit 99.1
 
 For release at 6:30 a.m.
 Contact:
 DUSA Pharmaceuticals Reports
First Quarter 2008 Corporate Highlights and Financial Results
 Q1 Levulan ® Kerastick ® unit sales up 36% year over year;
Non-GAAP loss narrows to ($0.6) million in Q108;
Pricing approval received for Levulan ® Kerastick ® in Brazil
 WILMINGTON, Mass.  May 7, 2008 ® ®
 ® ®




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
    
    International Expansion.
 §
    
    On March 6, 2008, the Company announced that Stiefel Laboratories, Inc., DUSAs
marketing partner for Latin America, had received final pricing approval for
Levulan® Kerastick® for the treatment of actinic keratoses (AKs)
in Brazil by the Regulatory Chamber of Medicines (Câmara de Regulação do Mercado de
Medicamentos) (CMED). The product was subsequently launched in Brazil in early April
2008. The product is now available in Latin America in Argentina, Brazil, Chile,
Colombia, and Mexico.
 
    
    Product Development.
 §
    
    On March 31, 2008, the Company reported that it had completed enrollment in its
Phase IIb clinical trial of Levulan® PDT for the treatment of moderate to
severe acne. A total of 266 patients were accrued at 14 clinical trial sites across
the country. The company expects top-line results to become available in the fall of
2008.§
    
    On May 1, 2008, the Company announced that the National Cancer Institute (NCI) has
launched a Phase I clinical trial using its aminolevulinic acid product. The study
examines an entirely new approach for the prevention of oral cancer, which may affect
more than 30,000 Americans this year. Chronic mouth lesions, the most common of which
is a condition known as oral leukoplakia, are early indicators of oral cancer. There is
currently no effective treatment for preventing the progression of oral leukoplakia to
cancer. The long-term goal is to examine aminolevulinic acid (ALA) photodynamic (PDT)
therapy as a preventive treatment for oral cancer by the selective removal of oral
leukoplakia.
 
    
    Operations.
 §
    
    On April 28, 2008, the Company reported that it had been notified by Actavis Totowa,
LLC, the manufacturer of Nicomide, that Actavis will cease manufacturing several
prescription vitamins, including Nicomide, due to continuing discussions with the U.S.
Food and Drug Administration. As previously disclosed by DUSA, Actavis Totowa had
received notice that the FDA considers prescription dietary supplements to be
unapproved new drugs. DUSA has inventory supplies of Nicomide, either in the
distribution channel or at wholesalers, to last approximately 6 months at current sales
levels. DUSA is evaluating alternative manufacturing, labeling and distribution
strategies in order to maintain Nicomide on the market.
 
    
    Personnel.
 §
    
    Subsequent to the end of the quarter, on April 21, 2008, the Company announced that
the role of D. Geoffrey Shulman, MD, Chairman of the Board and Chief Strategic Officer,
is expected to change as a result of a serious health condition. Dr. Shulman, the
Companys founder, served as Chief Executive Officer from 1991 to 2007, and Chairman of
the Board from 1991 to 2003 and again since 2005. Dr. Shulman




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expects to be on short
term disability commencing in June 2008. DUSA expects that he will remain on the Board
of Directors and will continue as an employee of the Company in a reduced role.
 Management Comments:




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3-months ended March 31,2008
    
    
    2007(Unaudited)
    
    
    (Unaudited)PDT Drug & Device Product RevenuesKerastick® Product Revenues:United States
    
    $
    4,774,000
    
    
    $
    3,724,000Canada
    
    
    159,000
    
    
    
    201,000Korea
    
    
    365,000
    
    
    
    Rest of World
    
    
    56,000
    
    
    
    Subtotal Kerastick® Product Revenues
    
    
    5,354,000
    
    
    
    3,925,000BLU-U® Product Revenues:United States
    
    
    476,000
    
    
    
    567,000Canada
    
    
    
    
    
    
    65,000Subtotal BLU-U® Product Revenues
    
    
    476,000
    
    
    
    632,000Total PDT Drug & Device Product Revenues
    
    
    5,830,000
    
    
    
    4,557,000Total Non-PDT Drug Product Revenues
    
    
    2,100,000
    
    
    
    2,120,000TOTAL PRODUCT REVENUES
    
    $
    7,930,000
    
    
    $
    6,677,000




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March 31,
    
    December 31,2008
    
    2007(Unaudited)ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    4,385,770
    
    
    $
    4,713,619Marketable securities
    
    
    18,521,941
    
    
    
    18,311,650Accrued interest receivable
    
    
    133,226
    
    
    
    97,243Accounts receivable, net
    
    
    3,167,139
    
    
    
    2,667,178Inventory
    
    
    2,895,417
    
    
    
    2,672,105Prepaid and other current assets
    
    
    1,834,764
    
    
    
    1,843,873TOTAL CURRENT ASSETS
    
    
    30,938,257
    
    
    
    30,305,668Restricted cash
    
    
    171,587
    
    
    
    170,510Property, plant and equipment, net
    
    
    2,111,361
    
    
    
    2,142,658Deferred charges and other assets
    
    
    259,186
    
    
    
    273,404TOTAL ASSETS
    
    $
    33,480,391
    
    
    $
    32,892,240LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIESAccounts payable
    
    $
    945,791
    
    
    $
    1,213,867Accrued compensation
    
    
    690,688
    
    
    
    491,529Other accrued expenses
    
    
    3,165,398
    
    
    
    3,322,642Deferred revenue
    
    
    2,274,249
    
    
    
    1,256,494TOTAL CURRENT LIABILITIES
    
    
    7,076,126
    
    
    
    6,284,532Deferred revenues
    
    
    3,150,457
    
    
    
    2,918,850Warrant liability
    
    
    1,607,142
    
    
    
    1,262,600Other liabilities
    
    
    321,385
    
    
    
    319,736TOTAL LIABILITIES
    
    
    12,155,110
    
    
    
    10,785,718SHAREHOLDERS EQUITYCapital stockAuthorized: 100,000,000 shares;
40,000,000 shares designated as common
stock, no par, and 60,000,000 shares
issuable in series or classes; and 40,000
junior Series A preferred shares.
24,078,610 common shares issued and
24,078,452 common shares outstanding at
March 31, 2008; and 24,076,110 common
shares issued and outstanding, at
December 31, 2007, no par, common
    
    
    151,652,943
    
    
    
    151,648,943Additional paid-in capital
    
    
    6,216,991
    
    
    
    5,885,353Accumulated deficit
    
    
    (136,884,625
    )
    
    
    (135,600,484
    )Accumulated other comprehensive loss
    
    
    339,972
    
    
    
    172,710TOTAL SHAREHOLDERS EQUITY
    
    
    21,325,281
    
    
    
    22,106,522TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
    
    $
    33,480,391
    
    
    $
    32,892,240




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3-months ended March 31,2008
    
    
    2007(Unaudited)
    
    
    (Unaudited)Product revenues
    
    $
    7,929,500
    
    
    $
    6,676,840Cost of product revenues and royalties
    
    
    1,700,317
    
    
    
    2,156,152Gross margin
    
    
    6,229,183
    
    
    
    4,520,688Operating costs:Research and development
    
    
    2,186,209
    
    
    
    1,526,104Marketing and sales
    
    
    3,057,201
    
    
    
    3,530,707General and administrative
    
    
    2,367,824
    
    
    
    3,023,449Net gain on settlement of litigation
    
    
    (235,600
    )
    
    
    Total operating costs
    
    
    7,375,634
    
    
    
    8,080,260Loss from operations
    
    
    (1,146,451
    )
    
    
    (3,559,572
    )Other income:Loss on change in fair value of warrants
    
    
    (344,542
    )
    
    
    Other income, net
    
    
    206,852
    
    
    
    188,644Net loss
    
    $
    (1,284,141
    )
    
    $
    (3,370,928
    )Basic and diluted net loss per common share
    
    $
    (0.05
    )
    
    $
    (0.17
    )Weighted average number of common shares
    
    
    24,078,418
    
    
    
    19,480,067




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Use of Non-GAAP Financial Measures
   3-months ended March 31,2008
    
    
    2007GAAP net loss
    
    $
    (1,284,141
    )
    
    $
    (3,370,928
    )Share-based compensation (a)
    
    
    331,638
    
    
    
    242,184Loss on change in fair value of warrants (b)
    
    
    344,542
    
    
    
    Non-GAAP adjusted net loss
    
    $
    (607,961
    )
    
    $
    (3,128,744
    )Non-GAAP basic and diluted net loss per common share
    
    $
    (0.03
    )
    
    $
    (0.16
    )Weighted average number of common shares
    
    
    24,078,418
    
    
    
    19,480,067
 
 (a)
    
    Share-based compensation expense resulting from the application of SFAS 123(R).(b)
    
    Non-cash loss on change in fair value of warrants.




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