Research and development expenses for the fourth quarter of 2009 were $1.6 million, compared with $2.5 million for the fourth quarter of 2008 and remained the Company ™s largest expense. Research and development expenses for calendar 2009 were $6.0 million compared with $9.3 million for 2008. These amounts are before the deduction of governmental and other grants, which totaled for the fourth quarter of 2009, $247,000, compared with $51,000 for the corresponding quarter in 2008, and $944,000 for calendar 2009, compared with $544,000 for 2008.

As of December 31, 2009, with the inclusion of the remaining receivables from the equity offering completed in late December 2009, cash and cash related accounts totaled $23.4 million, compared with $7.2 million at December 31, 2008. These amounts do not include the market value of Compugen ™s holdings of Evogene shares at each such yearend as discussed above. The Company anticipates maximum gross cash usage of $8.5 million for 2010, which would be reduced by any revenues or other cash sources, in calculating 2010 net cash usage. As previously stated, a short-term financial target for Compugen is to achieve cash flow breakeven by yearend 2011, based largely on research revenues under milestone and revenue sharing collaboration agreements. Achieving this target is of course subject to success in entering into additional collaborations during the next two years.