The following is a summary of quarterly financial results for the fiscal years 2001 and 2000:

				4Q ’01				3Q ’01				2Q ’01				1Q ’01
In thousands, except per share data
Statements of Operations Data:
Total revenues				$	970			$	946			$	838			$	735
Gross profit (loss)					(108	)			43				(76	)			(35	)
Operating expenses:
	Research & development				7,123				10,297				9,002				8,187
	Sales and marketing				737				784				664				622
	General & administration				2,001				1,538				8,753				3,073
		Total operating expenses			9,861				12,619				18,419				11,882
Loss from operations					(9,969	)			(12,576	)			(18,495	)			(11,917	)
Other income, net					578				654				990				1,316
Net loss				$	(9,391	)		$	(11,922	)		$	(17,505	)		$	(10,601	)
Per share data:
	Basic net loss per common share			$	(0.37	)		$	(0.47	)		$	(0.70	)		$	(0.42	)
	Weighted-average shares used in computing basic     net loss per common share				25,208				25,134				24,958				24,960

				4Q ’00				3Q ’00				2Q ’00				1Q ’00
In thousands, except per share data
Statements of Operations Data:
Total revenues				$	920			$	836			$	710			$	598
Gross profit (loss)					(352	)			(379	)			(392	)			(591	)
Operating expenses:
	Research & development				3,747				6,229				8,143				8,259
	Sales and marketing				698				617				569				579
	General & administration				3,501				1,529				1,736				3,112
		Total operating expenses			7,946				8,375				10,448				11,950
Loss from operations					(8,298	)			(8,754	)			(10,840	)			(12,541	)
Other income, net					1,502				1,563				933				358
Net loss				$	(6,796	)		$	(7,191	)		$	(9,907	)		$	(12,183	)
Per share data:
	Basic net loss per common share			$	(0.27	)		$	(0.29	)		$	(0.42	)		$	(0.55	)
	Weighted-average shares used in computing basic     net loss per common share				24,937				24,933				23,580				22,282

     In the third quarter of fiscal 2001, research and development expenses include a one-time expense of $1,604,000, of which $1,511,000 is non-cash, for intellectual property and pre-clinical studies related to the acquisition of Reperfusion Systems, Inc., an inactive company 26% owned by Biopure.

     General and administrative expenses include non-cash compensation expense for stock options and warrants granted to certain consultants and directors. This non-cash compensation must be accounted for at fair value, per SFAS 123 and EITF 96-18, and be amortized over the vesting period and revalued each quarter based on the closing stock price. The quarterly expenses/(credits) to operations for fiscal 2001 were ($80,000), ($793,000), $6,370,000 and $1,347,000 for the fourth, third, second and first quarters, respectively. The quarterly expenses/(credits) to operations for fiscal 2000 were $1,895,000, ($34,000), $131,000 and $1,688,000 for the fourth, third, second and first quarters, respectively.