Third-quarter 2009 results announced by Neurologix

Neurologix, Inc. (OTCBB: NRGX) (the “Company”), a biotechnology company engaged in the development of innovative gene therapies for the brain and central nervous system, announced today its financial results for the third quarter and nine months ended September 30, 2009.

For the three months ended September 30, 2009, the Company reported a net loss of $3.5 million, as compared with a net loss of $1.6 million for the three months ended September 30, 2008. The net loss for the three months ended September 30, 2009 includes charges of $0.7 million recognized for the increase in estimated fair value of the Company’s derivative liabilities relating to certain warrants issued in connection with the Company’s Series D Convertible Preferred Stock (the “Series D Stock”) and the Company’s Series C Convertible Preferred Stock (the “Series C Stock”).

The Company reported a net loss applicable to common stock for the third quarter of 2009 of $4.2 million, or $0.15 per basic and diluted share, as compared with a net loss applicable to common stock of $2.4 million, or $0.08 per basic and diluted share, for the same period in 2008. The net loss applicable to common stock for the three months ended September 30, 2009 includes charges of $0.8 million, or $0.03 per basic and diluted share, related to preferred stock dividends in connection with the Series D Stock and the Series C Stock. The net loss applicable to common stock for the three months ended September 30, 2008 includes charges of $0.7 million, or $0.03 per basic and diluted share, related to preferred stock dividends in connection with the Series D Stock and the Series C Stock.

The Company reported a net loss of $10.6 million for the nine months ended September 30, 2009, as compared with a net loss of $4.9 million for the nine months ended September 30, 2008. The net loss for the nine months ended September 30, 2009 includes charges of $2.7 million recognized for the increase in estimated fair value of the Company’s derivative liabilities relating to certain warrants issued in connection with the Series D Stock and the Series C Stock.

The Company reported a net loss applicable to common stock for the nine months ended September 30, 2009, of $12.8 million, or $0.46 per basic and diluted share, as compared with $7.6 million, or $0.28 per basic and diluted share, for the same period in 2008. The increase in net loss for 2009 over 2008 is attributable primarily to increased clinical research costs associated with the Company’s ongoing Phase 2 clinical trial for the treatment of advanced Parkinson’s disease. For the nine months ended September 30, 2009, the net loss applicable to common stock includes charges of $2.2 million, or $0.08 per basic and diluted share related to preferred stock dividends in connection with the Series D Stock and the Series C Stock. For the nine months ended September 30, 2008, the net loss applicable to common stock includes charges of $2.7 million, or $0.10 per basic and diluted share related to the accretion of beneficial conversion features ($0.8 million) in connection with the issuance of the Series D Stock in April 2008, and preferred stock dividends ($1.9 million) in connection with the Series D Stock and the Series C Stock.

Neurologix had cash and cash equivalents of approximately $11.8 million at September 30, 2009.

John Mordock, President and Chief Executive Officer of Neurologix, noted that these third quarter financial results were consistent with the Company’s expectations.

“The Data Monitoring Committee has held its second meeting to review the progress of the ongoing Phase 2 study of our novel gene transfer therapy for advanced Parkinson’s disease,” commented Mr. Mordock. “I am pleased to report that this committee has recommended that the trial continue unmodified. Enrollment has continued apace, and we remain on track to complete all surgeries for the trial before year-end. This puts us on course for obtaining the first efficacy results from this trial around mid-year 2010.”

The Neurologix Quarterly Report on Form 10-Q, with financial statements and management’s discussion of operations and results, can be found in the “Investors” section of the Company’s website at http://www.neurologix.net.