included in general and administrative expenses. In addition to salaries and benefits, this category includes legal expenses, including the cost of maintaining our intellectual property as well accounting and other costs.

Other income (expense) for the year of $(2,715,000), as compared to $302,000 in 2010 and was dominated by the non-cash costs of the financing completed in the first quarter of 2011.

Our balance sheet at December 31, 2011, consists of $199,000 in cash and accounts payable of $2,173,000, including $1,500,000 due to the FDA. The remaining liabilities of $6,461,000 primarily reflect deferred revenue to be recognized over the term of various license agreements.

The Company is effectively insolvent and is actively engaged in seeking capital or a strategic partner. To date, this effort has not been successful.

Events subsequent to December 31, 2011

In February 2011, we sold our non-United States, Canada and Mexico rights for Nitromist to Apricus Inc. for $200,000. We also received $134,000 from Akrimax in payment for the royalties earned from Nitromist in the fourth quarter. Our principal expenses in 2012 have been for general and administrative expenses including the maintenance of our intellectual property. We continue to reduce our operating expenses and currently are operating with one employee.

As previously reported, if the Company cannot secure financing or a strategic partner, the Company may file for bankruptcy. It is also the intention of the Company to deregister its common stock and exit the Securities and Exchange Commission reporting system at the end of March 2012.

ABOUT NOVADEL PHARMA

NovaDel Pharma Inc. is a specialty pharmaceutical company that develops oral spray formulations of marketed pharmaceutical products. The Company’s patented oral spray drug delivery technology seeks to improve the efficacy, safety, patient compliance, and patient convenience for a broad range of prescription pharmaceuticals. NovaDel has two marketed products that have been approved by the FDA: NitroMist® for the treatment of angina, and Zolpimist™ for the treatment of insomnia. NovaDel’s leading product candidate, Duromist™, is being developed for the treatment of erectile dysfunction. The Company also has product candidates that target nausea, migraine headache and disorders of the central nervous system. NovaDel plans to develop these and other products independently and through collaborative arrangements with pharmaceutical and biotechnology companies. To find out more about NovaDel Pharma Inc. (OTC BB: NVDL), visit our website at www.novadel.com.

FORWARD-LOOKING STATEMENTS:

Except for historical information contained herein, this document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks and uncertainties that may cause the Company’s actual results or outcomes to be materially different from those anticipated and discussed herein including, but not limited to, the Company’s ability to obtain additional required financing or achieve other strategic alternatives (the lack of which would cause the Company to file for bankruptcy), the ability of third parties to successfully commercialize the Company’s products, the successful completion of its clinical trials, including pilot pharmacokinetic feasibility studies, the successful completion of its preclinical studies, the ability to develop products (independently and through collaborative arrangements), the ability to commercialize and obtain FDA and other regulatory approvals for products under development, and the acceptance in the marketplace for oral spray products. The Company operates in industries where securities may be volatile and may be influenced by regulatory and other factors beyond the Company’s control.

In addition, our inability to maintain or enter into, and the risks resulting from our dependence upon, collaboration or contractual arrangements necessary for the development, manufacture, commercialization, marketing, sales and distribution of any of our products could materially impact the Company’s actual results. Important factors that the Company believes might cause such differences are discussed in the risk factors detailed in the Company’s most recent Quarterly Report on Form 10-Q for the period ended September 30, 2011 filed with the Securities and Exchange Commission. In assessing forward-looking statements contained herein, if any, the reader is urged to carefully read all cautionary statements contained in such filings. We do not intend to update any of these factors or to publicly announce the results of any revisions to these forward-looking statements.

Contacts

NovaDel Pharma Inc.
Steven B. Ratoff, 908-203-4640
Chairman and Chief Executive Officer
sratoff@novadel.com