DUSA EXPECTS REVENUE TO REFLECT SIGNIFICANT GROWTH.

In response to current market conditions, DUSA Pharmaceuticals (NASDAQ NMS:DUSA), Wilmington, Mass., has reported that it now expects sales of its Levulan(R) Kerastick(R) and BLU-U(R) brand light device for the quarter ending June 30, 2005 to be lower than sales for the quarter ended March 31, 2005. However, management also expects year-to-date revenue versus the prior year to reflect significant growth. As previously stated in its Form 10-Q for the period ended March 31, 2005, while DUSA is seeing certain positive trends, it believes that the lower volumes of Kerastick units may be due, in part, to the continuing effects of supply levels at physician's offices who participated in volume discount purchases during late 2004 and who are working down their supplies; and also due to disruption caused by the sales force reorganization which took place during the first and second quarters. In the case of BLU-U sales, DUSA has eliminated price discounting during the second quarter which it believes has had a negative effect on this quarter's sales.

DUSA also wishes to clarify that while negotiations with PhotoCure and Galderma are on-going and progress is being made, there is no certainty if, or when, a settlement will be reached regarding the parties' patent dispute. Finally, DUSA wishes to note that its Phase II clinical studies for the treatment of acne remain blinded and that preliminary results are expected to be available by the end of the year, though through the first cohort of the trial, investigators are reporting encouraging results.

DUSA Pharmaceuticals, Inc. is a biopharmaceutical company engaged primarily in the development and marketing of Levulan Photodynamic Therapy (PDT) and Photodetection (PD) for multiple medical conditions, with a primary focus on dermatology. PDT and PD utilize light-activated compounds to induce a therapeutic or detection effect. DUSA maintains offices in Wilmington, MA, Valhalla, NY and Toronto, Ontario.

For more information, call 416/363-5059 or visit http://www.dusapharma.com.