Exhibit 99.1

NEOSE TECHNOLOGIES, INC.
102 Witmer Road, Horsham, PA 19044  215.315.9000  fax:215.315.9100
email: info@neose.com   www.neose.com

NEOSE TECHNOLOGIES REPORTS SECOND QUARTER FINANCIAL RESULTS

HORSHAM, PA, August 5, 2004 — Neose Technologies, Inc. (NasdaqNM: NTEC) today announced financial results for the second quarter and six months ended June 30, 2004.

For the quarter ended June 30, 2004, the Company reported a net loss of $10,326,000, or $0.47 per basic and diluted share, compared to a net loss of $9,226,000, or $0.54 per basic and diluted share, for the same period in 2003. The increased net loss for the 2004 period was primarily due to $1,124,000 of increased research and development expenses.  This increase resulted from higher personnel costs and increased purchases of outside services, including preclinical studies, and research supplies associated with the Company’s proprietary drug development programs.  Marketing, general and administrative costs increased by $127,000 during the 2004 period due to higher costs incurred related to the Company’s patent legal fees, partially offset by savings in personnel costs.   The Company reported revenues of $891,000 for the second quarter of 2004, compared to $651,000 for the second quarter of 2003. The increase in revenues for the 2004 period was primarily due to revenues recognized under the Company’s collaboration with Novo Nordisk.

For the six months ended June 30, 2004, the Company reported a net loss of $19,829,000, or $0.94 per basic and diluted share, compared to a net loss of $17,647,000, or $1.07 per basic and diluted share, for the same period in 2003. The Company reported revenues of $2,141,000 for the first six months of 2004, compared to $721,000 for the same period in 2003. The increase in revenues for the 2004 period was primarily due to the Company’s collaboration with Novo Nordisk. 

Operating expenses for the six months ended June 30, 2004 were $21,852,000, compared to $18,485,000 for the same period in 2003. Research and development expenses for the six months ended June 30, 2004 increased to $15,666,000 from $12,284,000 in the comparable 2003 period.  The increase was primarily due to higher personnel costs, as well as increased purchases of outside services, including preclinical studies, and research supplies associated with the Company’s proprietary drug development programs.

NEOSE TECHNOLOGIES, INC. Page 2

The Company’s marketing, general, and administrative expenses were $6,186,000 for the six months ended June 30, 2004, compared to $6,201,000 for the same period last year. The minimal decrease for the 2004 period was due to lower personnel and marketing costs, partially offset by higher legal expenses associated with the Company’s intellectual property portfolio.

The Company ended the second quarter with $64,884,000 in cash, cash equivalents, and marketable securities.  In May 2004, the Company sold 4,733,476 shares of common stock in a registered direct offering at a price of $6.77 per share, generating net proceeds of $29,928,000.

Conference Call 

The Company will host a conference call at 5:00 p.m. (EDT) on August 5, 2004, to discuss the second quarter financial results and update investors on company developments.  The dial-in number for domestic callers is (800) 562-8369. The dial-in number for international callers is (913) 981-5581.  A replay of the call will be available for 7 days beginning approximately three hours after the conclusion of the call. The replay number for domestic callers is (888) 203-1112 using the passcode 111916. The replay number for international callers is (719) 457-0820, also using the passcode 111916.  Live audio of the conference call will be simultaneously broadcast over the Internet through First Call Events, which can be accessed via the following link:

http://www.firstcallevents.com/service/ajwz408892784gf12.html

To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software.  For those who cannot listen to the live broadcast, a replay will be available shortly after the call.  The call will also be available on the Investor Relations/Audio Archives page of the Neose website at www.neose.com.

About Neose 

     Neose is a biopharmaceutical company focused on improving protein therapeutics using its proprietary technologies.  Neose’s core business is to use its novel GlycoAdvance™ and GlycoPEGylation™ technologies to improve proteins for which there is already a substantial body of data demonstrating safety and efficacy.  Neose intends to apply its technologies to products it is developing on its own and to products it co-develops and co-owns with others.  It also expects to make its technologies available, through strategic partnerships, to improve the products of other parties.

NEOSE TECHNOLOGIES, INC. Page 3

Statements of Operations
(in thousands, except per share amounts)
(unaudited)

	Three months ended June 30,						Six months ended June 30,
	2004			2003			2004			2003
Revenue from collaborative agreements	$	891		$	651		$	2,141		$	721
Operating expenses:
Research and development		7,788			6,664			15,666			12,284
Marketing, general and administrative		3,324			3,197			6,186			6,201
Total operating expenses		11,112			9,861			21,852			18,485
Operating loss		(10,221	)		(9,210	)		(19,711	)		(17,764	)
Interest income		131			147			236			317
Interest expense		(236	)		(163	)		(354	)		(200	)
Net loss	$	(10,326	)	$	(9,226	)	$	(19,829	)	$	(17,647	)
Basic and diluted net loss per share	$	(0.47	)	$	(0.54	)	$	(0.94	)	$	(1.07	)
Weighted-average shares outstanding used in computing basic and diluted net loss per share		22,146			17,229			21,050			16,519

NEOSE TECHNOLOGIES, INC. Page 4

Condensed Balance Sheets
(in thousands)
(unaudited)

	June 30, 2004		December 31, 2003
Assets
Cash, cash equivalents and marketable securities	$	64,884	$	53,060
Restricted funds and other current assets		1,693		1,818
Total current assets		66,577		54,878
Property and equipment, net		42,132		37,192
Other assets and acquired intellectual property, net		2,326		2,775
Total assets	$	111,035	$	94,845
Liabilities and Stockholders’ Equity
Current liabilities	$	14,339	$	13,849
Long-term debt and capital lease obligations		13,817		8,370
Other liabilities		325		413
Total liabilities		28,481		22,632
Stockholders’ equity		82,554		72,213
Total liabilities and stockholders’ equity	$	111,035	$	94,845

CONTACTS:

Neose Technologies, Inc.
	Robert I. Kriebel
	Sr. Vice President and Chief Financial Officer
	(215) 315-9000
	Barbara Krauter
	Manager, Investor Relations
	(215) 315-9004

For more information, please visit www.neose.com.

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