Good day, ladies and gentlemen, and welcome to the second quarter 2008 Emergent BioSolutions Inc. earnings conference call. My name is Katina and I will be your coordinator for today. At this time, all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of this conference. (Operator instructions) I would now like to turn the presentation over to our host for today's call Mr. Robert Burrows. Please proceed.

Thank you, Katina. Good morning, ladies and gentlemen. Thank you for joining us today as we discuss Emergent BioSolutions financial results for the second quarter and for six months of 2008. As is customary, our call today is open to all participants. In addition, the call is being electronically recorded and is copywrited by Emergent BioSolutions. Joining me on the call this morning is Fuad El-Hibri, our Chairman and Chief Executive Officer, and Don Elsey, our Chief Financial Officer. Additional members of our senior management team will be present on the call for purposes of the Q&A session if need be. The agenda for today's call is as follows Following my brief introduction, Fuad will provide comments on corporate accomplishments in Q2 2008 and key objectives for the remainder of 2008. Don will then discuss the 2Q and for six months of 2008 financials as well as comment on our 2008 financial guidance. We will finish the call with the customary Q&A session. Please note that any statements about the company's prospects or future expectations are forward-looking statements. As you know, forward-looking statements involve substantial risks and uncertainties and actual results may differ materially from expectations. Please refer to the press release issued earlier today and importantly to our filings with the SEC for more information on the risks and uncertainties that could cause actual results to differ. Also, Emergent BioSolutions assumes no obligation to update the information in today's press release or as presented on this call except as may be required by applicable laws or regulations. Today's press release may be found on our Web site at www.emergentbiosolutions.com under Investors/Press Release. And with that introduction, I would now like to turn the call over to Fuad El-Hibri, Emergent's Chairman and CEO. Fuad?

Thank you, Bob. Good morning, ladies and gentlemen and thank you for joining us today. This morning we reported financial results for the second quarter of 2008. I am very pleased with our financial results for the second quarter and first half of 2008. Our revenues for the first half of the year are a record for our company and we continue on the past for our seventh year of operational profitability. In a moment, Don will take you through a more detailed review of our results for the second quarter and first six months of 2008. For my portion of the call this morning, I would provide an update on our operational accomplishments including marketing and sales, product development, manufacturing, and business development. But, first, for those investors who are new to Emergent, let me briefly tell you about our mission and business focus. In short, we are dedicated to one simple mission, to protect lives. We develop, manufacture and commercialize vaccine in biotherapeutics that assist the body's immune system to prevent or treat infectious and other life threatening diseases. And we consider ourselves as a leading biopharmaceutical company that is focused on immune-related biologics. Within immune-related biologics we are currently focused on infectious diseases that will continue to offer significantly consider other immune-related candidate. As we continue to develop Emergent's leadership position in the biopharmaceuticals base, we believe that our business focus will lead to build the long-term value for our customers, partners and shareholders. With that introduction, let me now turn to our operational accomplishments for the second quarter. I will begin with an update on our marketing and sales revenues. During the third quarter, we continued to deliver BioThrax to HHS for inclusion in the Strategic National Stockpile under our current multiyear contract. As a reminder,…

Thank you, Fuad. Good morning, everyone. As Fuad mentioned, we released our second quarter 2008 financial results this morning prior to the opening of the markets. The press release is available on our Web site. Today we will be filing our quarterly report on Form 10-Q with the SEC. The 10-Q will also be available on our Web site and on the SEC's Web site once it has been filed. Our financial performance for the second quarter and first half of 2008 reflects significant progress for attaining our financial goals for 2008 We continue to deliver doses of BioThrax for inclusion into the Strategic National Stockpiling pursuant to our current multiyear contract with the U.S. government. We are also expanding our manufacturing and product development infrastructure and we are investing in strategic acquisitions of partnerships to further bolster our product pipeline. Our acquisition of both a human monoclonal antibody as a therapeutic for anthrax infection and Advanced Recombinant Protective Antigen Anthrax vaccine during the first half of this year strengthened our anthrax franchise and enables us to offer solutions to all three phases of anthrax infection. Now, I would like to give a summary of our financial results for the second quarter and first six months of 2008. And I'll start with product revenues. Second quarter 2008 product sales increased by $19.8 million or 88% to $42.3 million, up from $22.5 million for the comparable period of 2007. The increase was primarily due to a 98% increase in the number of doses of BioThrax delivered. Product sales for the second quarter of 2008 consisted of BioThrax sales at HHS of $41.9 million, and an aggregate international and other sales of $0.4 million. For the six month period of 2008, product sales increased by 35.9 million, or 75% to $83.8 million,…

Thank you. (Operator instructions) Your first question comes from the line of Eric Schmidt representing Cowen & Company. Please proceed. Eric Schmidt – Cowen & Company: Hi, good morning. Thanks for taking my call. Don, in terms of the operating cash used in the quarter, are you owed some payments from HHS or shipments is delivered they haven't received cash for is that made operating cash went down?

The operating cash went down on a number of reasons, but yes. Our AR has increased over what it was before we're now at an AR level of $22 million. Eric Schmidt – Cowen & Company: And in terms of the subtle change to revenue guidance highest toward the lower end of the previous range, is the only change there that you're now not necessarily show about four year dating or have you taken out any initial DoD revenues I assume that's also –

Clearly, there are a number of factors that play in the overall revenue projections. I would say the primary influence is the four year dating in, I would want to stress it's not that we're changing our view on the achievability of four year dating, it's strictly a timing expectation that instead of being that in this year, it might go out into the first quarter of next year. Eric Schmidt – Cowen & Company: And I take from Fuad's comments that you're basically planning to sell out your capacity this year 7 million to 8 million doses BioThrax to HHS, if you got some orders from DoD, could you fill them or would they not be applicable to the guidance for 2008 either?

Currently – let me just answer that question, if I may. We are confident that we will be delivering everything we produce this year. So, whether it is under HHS or DoD, this is something the government will work out between them. So, point is that we believe that we will be able to sell all that we can produce this year. Eric Schmidt – Cowen & Company:

Next question comes from the line of Cory Kasimov representing JP Morgan. Please proceed. Cory Kasimov – JP Morgan: Hi, good morning, guys. First question is on rPA. Can you expand a little bit on the stability improvement that has been made there over the issues that VaxGen hadn't, the reasons for your confidence that these issues have been adequately answered?

Hi, Cory, this is Jim Jackson. Cory Kasimov – JP Morgan: Hi, Jim.

Yes. Basically, what we have done is that we have improved final formulation of the vaccine compared to what it was the fact that VaxGen was using and is the initial clinical trial. And we have animal and stability data now, indicating that this stability profile will be much enhanced over what it was initially. So, very strong those data, we think we are going to be able to meet or exceed HHS requirement for second generation stability product. Cory Kasimov – JP Morgan: Great. And then regarding this pending rPA contract that's out there, can you talk a little bit about how large you think this could actually be both in dose and dollar terms? I know it's the $25 million – 25 million dose contract, but we heard rumbling that it actually could be larger or how this potentially be split out?

I think it's safe to say that the government has stated that there could be as many as two awards. The question is could there be two awards of 25 million doses each. That's the possibility. Could be that within the 25 million doses requirement that they split it in one way or another. So that's one factor in terms of determining the size of a potential contract. The other factor of course is pricing which is a very competitive issue. But in terms of looking at what vaccine would cause – if you look at the former VaxGen contract, was that around $11 to $12 a dose, that for 75 million dose, so obviously, there is some economies of scale those in there. So, we would expect that for a lower quantity that price go up some. So, again, you can use the price somewhere north of that, and quantities that anywhere from 0 to 25 million doses per award. Cory Kasimov – JP Morgan: And then assuming this rPA contract is awarded, do you think that would have any potential downstream impact on government's requirements for the BioThrax vaccine beyond 20 time or the current contract doses?

We believe not, because as I mentioned earlier in my prepared presentation that we believe that the government is committed to purchase BioThrax in the long-term, if the license product – even if the second license product commercially be available, five or more years then I think it allows the government to continue purchasing from two suppliers and two products that are licensed. Cory Kasimov – JP Morgan: And then lastly, you also indicated in your prepared remarks that there is the potential that the HHS extend this contract or it goes above and beyond the current 18.75 million doses. Can you go into that a little bit more and talk about maybe the rationale there and when we could hear on something like that?

The rationale is that the government remains committed to purchasing BioThrax and to purchasing much as we tend to produce in order to increase the supply for this Strategic National Stockpile, and given that we project that by the second half of next year, we would have supplied the full 18.75 million doses that we have already started discussions, preliminary discussions with the government for an expansion of that contract above that 18.75 million doses. Cory Kasimov – JP Morgan: Great. That's helpful. Thanks for taking the question.

I like to remind you also that the government has stated and we stated over and over again that their requirements is 75 million doses. That's as far as we understand the stand. Even that the doses that we have supplied into the SNS, some of them have expired or are expiring so it's – the needs to continue – continues to be a requirement for rotation after that. Cory Kasimov – JP Morgan: Thank you.

Thank you very much.

(Operator instructions) Your next question comes from the line of Tim Gray representing Potomac Capital. Please proceed. Tim Gray – Potomac Capital: Hi, there, good morning everybody. Just a quick reiteration on the guidance, again, it was to see on the low end here because of the four year dating not being included into this fiscal year versus any reduced expectations on deliveries or even margin on a pricing on the deliveries (inaudible).

Good morning, Tim, this is Don Elsey. Yes. That's correct. That is we have decided in the guidance that it's more prudent to view that four-year dating occurring in 2009 versus 2008, that's the primary input. Underneath that, there are certainly a number of much more minor changes that are moving in various directions. That's the primary one. I would say that the pricing delivery schedule, everything else with respect to HHS absolutely remain in place. Tim Gray – Potomac Capital: Thank you very much.

Thank you, Tim.

There are no further questions in queue at this time. I would now like to turn the call back to Mr. Burrows for closing remarks.

Thank you very much. Ladies and gentlemen, that concludes today's call. Thank you for your participation. Please note that today's call has been recorded and the replay will be available beginning later today through August 21st. Alternatively, there is available a webcast of today's call, an archived version of which will be available later this morning. Thank you again and we look forward to speaking to you all in the future. Good bye.

Ladies and gentlemen, thank you for your participation in today's conference. This concludes your presentation. You may now disconnect. Good day.