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Exhibit 99.1


Nanosphere, Inc.
4088 Commercial Avenue

Northbrook, IL 60062
 NEWS For Release: Thursday, 12/13/07, 6:30AM(ET)
 Nanosphere, Inc. Announces Third Quarter 2007 Financial Results
 Initiates Commercial Launch of the Verigene® System




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www.nanosphere.us
  ® http://www.nanosphere.us
 Contact:     rmoody@nanosphere.us     spearlman@torrenzano.com




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Nanosphere, Inc.
(A Development Stage Company)
Statements of Operations
(Unaudited)
 Three Month
    
    
    Three Month
    
    
    Nine Month
    
    
    Nine MonthPeriod Ended
    
    
    Period Ended
    
    
    Period Ended
    
    
    Period EndedSeptember 30,
    
    
    September 30,
    
    
    September 30,
    
    
    September 30,2006
    
    
    2007
    
    
    2006
    
    
    2007REVENUE:Grant and contract revenue
    
    $
    379,494
    
    
    $
    192,880
    
    
    $
    818,006
    
    
    $
    919,383Product sales
    
    
    89,030
    
    
    
    6,125
    
    
    
    116,660
    
    
    
    59,795Total revenue
    
    
    468,524
    
    
    
    199,005
    
    
    
    934,666
    
    
    
    979,178COSTS AND EXPENSES:Cost of product sales
    
    
    31,049
    
    
    
    2,844
    
    
    
    31,049
    
    
    
    21,211Research and development
    
    
    4,134,451
    
    
    
    5,674,390
    
    
    
    12,009,047
    
    
    
    15,893,437Sales, general, and administrative
    
    
    1,443,795
    
    
    
    4,429,214
    
    
    
    4,107,726
    
    
    
    9,685,797Total costs and expenses
    
    
    5,609,295
    
    
    
    10,106,448
    
    
    
    16,147,822
    
    
    
    25,600,445Loss from operations
    
    
    (5,140,771
    )
    
    
    (9,907,443
    )
    
    
    (15,213,156
    )
    
    
    (24,621,267
    )OTHER INCOME (EXPENSE):Change in fair value of
convertible derivative liability
    
    
    
    
    
    
    (11,888,721
    )
    
    
    (2,916,822
    )
    
    
    (11,888,721
    )Change in fair value of preferred
stock warrants
    
    
    7,053
    
    
    
    (4,858,974
    )
    
    
    (237,051
    )
    
    
    (5,135,586
    )Foreign exchange loss
    
    
    
    
    
    
    (27,175
    )
    
    
    
    
    
    
    (40,945
    )Interest expense  related party.
    
    
    
    
    
    
    
    
    
    
    (146,550
    )
    
    
    Interest expense
    
    
    (1,879
    )
    
    
    (572,772
    )
    
    
    (3,464
    )
    
    
    (1,396,520
    )Interest income
    
    
    505,010
    
    
    
    286,654
    
    
    
    988,765
    
    
    
    1,045,087Total other income (expense)
    
    
    510,184
    
    
    
    (17,060,988
    )
    
    
    (2,315,122
    )
    
    
    (17,416,685
    )NET LOSS
    
    
    (4,630,587
    )
    
    
    (26,968,431
    )
    
    
    (17,528,278
    )
    
    
    (42,037,952
    )Accumulated convertible preferred
stock dividends
    
    
    (1,531,329
    )
    
    
    (1,652,493
    )
    
    
    (2,882,262
    )
    
    
    (4,832,822
    )Convertible preferred stock
redemption value adjustment
    
    
    
    
    
    
    
    
    
    
    (17,737,544
    )
    
    
    (608,940
    )NET LOSS ATTRIBUTABLE TO COMMON
STOCK
    
    $
    (6,161,916
    )
    
    $
    (28,620,924
    )
    
    $
    (38,148,084
    )
    
    $
    (47,479,714
    )Net loss per common share 
basic and diluted
    
    $
    (6.61
    )
    
    $
    (30.69
    )
    
    $
    (45.32
    )
    
    $
    (50.91
    )Weighted average number of common
shares outstanding  basic and
diluted
    
    
    932,564
    
    
    
    932,646
    
    
    
    841,824
    
    
    
    932,646




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Nanosphere, Inc.
(A Development Stage Company)
Balance Sheets
(Unaudited)
 December 31,
    
    
    September 30,2006
    
    
    2007CURRENT ASSETS:Cash and cash equivalents
    
    $
    29,112,429
    
    
    $
    18,105,934Accounts receivable
    
    
    44,816
    
    
    
    73,485Inventories
    
    
    884,849
    
    
    
    1,874,421Deferred equity financing costs
    
    
    
    
    
    
    1,946,928Other current assets
    
    
    462,858
    
    
    
    522,375Total current assets
    
    
    30,504,952
    
    
    
    22,523,143PROPERTY AND EQUIPMENT  At cost:Computer equipment and software
    
    
    730,144
    
    
    
    846,275Laboratory equipment
    
    
    2,788,164
    
    
    
    3,303,217Furniture and fixtures
    
    
    143,134
    
    
    
    251,506Leasehold improvements
    
    
    2,086,977
    
    
    
    2,235,938Manufacturing equipment
    
    
    2,056,830
    
    
    
    2,916,520Office equipment
    
    
    66,007
    
    
    
    67,068Tooling
    
    
    707,018
    
    
    
    957,326Total property and equipment  at cost
    
    
    8,578,274
    
    
    
    10,577,850Less accumulated depreciation
    
    
    (2,999,802
    )
    
    
    (4,186,301
    )Net property and equipment  at cost
    
    
    5,578,472
    
    
    
    6,391,549INTANGIBLE ASSETS  Net of accumulated amortization
    
    
    4,865,950
    
    
    
    5,284,892OTHER ASSETS
    
    
    88,460
    
    
    
    171,736TOTAL
    
    $
    41,037,834
    
    
    $
    34,371,320CURRENT LIABILITIES:Accounts payable
    
    $
    1,499,514
    
    
    $
    2,071,595Accrued compensation
    
    
    872,508
    
    
    
    857,189Accrued license fees
    
    
    360,000
    
    
    
    406,455Accrued legal expenses
    
    
    137,088
    
    
    
    139,218Accrued financing costs
    
    
    
    
    
    
    1,928,358Other current liabilities
    
    
    270,935
    
    
    
    879,352Note payable  related party
    
    
    
    
    
    
    Long term debt  current portion
    
    
    
    
    
    
    2,494,534Lease payable  current portion
    
    
    32,444
    
    
    
    35,922Total current liabilities
    
    
    3,172,489
    
    
    
    8,812,623LONG-TERM LIABILITIES:Accrued license fees  noncurrent
    
    
    330,000
    
    
    
    Lease payable  noncurrent portion
    
    
    58,802
    
    
    
    31,121Long term debt  noncurrent portion
    
    
    
    
    
    
    8,363,649Preferred stock warrants
    
    
    1,761,533
    
    
    
    6,897,119Convertible derivative liability
    
    
    32,085,041
    
    
    
    44,582,702Total liabilities
    
    
    37,407,865
    
    
    
    68,687,214CONVERTIBLE PREFERRED STOCK:Series B Convertible Preferred Stock, $0.01 par
value; Liquidation preference of $32,832 at
September 30, 2007
    
    
    25,396
    
    
    
    25,396Series C Convertible Preferred Stock, $0.01 par
value; Liquidation preference of $6,968,675 at
September 30, 2007
    
    
    6,030,003
    
    
    
    6,030,003Series C-2 Convertible Preferred Stock, $0.01 par
value; Liquidation preference of $47,794,091 at
September 30, 2007
    
    
    47,037,902
    
    
    
    49,140,111Series D Convertible Preferred Stock, $0.01 par
value; Liquidation preference of $62,376,967 at
September 30, 2007
    
    
    55,774,739
    
    
    
    60,442,890Total Convertible Preferred Stock
    
    
    108,868,040
    
    
    
    115,638,400STOCKHOLDERS DEFICIT:Common stock, $0.01 par value; 450,000,000 shares
authorized at December 31, 2006 and September 30,
2007
    
    
    92,580
    
    
    
    92,580Additional paid-in capital
    
    
    2,051,126
    
    
    
    3,374,617Note receivable from chief executive officer
    
    
    (1,440,000
    )
    
    
    Deficit accumulated during the development stage
    
    
    (105,941,777
    )
    
    
    (153,421,491
    )Total stockholders deficit
    
    
    (105,238,071
    )
    
    
    (149,954,294
    )TOTAL
    
    $
    41,037,834
    
    
    $
    34,371,320