PDL BioPharma (PDLI)

Selling and Marketing Expenses

Selling and marketing expenses generally consist of costs of personnel, consulting and other expenses related to our selling and marketing functions, which are principally in support of our marketed products, and overhead costs and stock-based compensation expenses accounted for under SFAS 123(R) as a component of personnel-related costs.

Selling and marketing expenses for the three months ended September 30, 2007 increased 29% to $20.2 million from $15.7 million during the comparable period in 2006. This increase was primarily due to increases in personnel-related expenses of $2.9 million principally as a result of increased headcount and higher salaries and commissions, as well as increases in marketing-related consulting expenses of $0.7 million and facilities costs of $0.5 million.

For the nine months ended September 30, 2007, selling and marketing expenses increased 24% to $60.5 million from $48.6 million during the comparable period in 2006. This increase was primarily due to increases in personnel-related expenses of $6.0 million, marketing-related consulting costs of $3.3 million, and facility-related expenses of $1.5 million.

Selling and Marketing Expenses

Selling and marketing expenses generally consist of costs of personnel, consulting and other expenses related to our selling and marketing functions, which are principally in support of our marketed products, and overhead costs and stock-based compensation expenses accounted for under SFAS 123(R) as a component of personnel-related costs.

Selling and marketing expenses for the three months ended June 30, 2007 increased 25% to $19.0 million from $15.2 million during the comparable period in 2006. This increase was primarily due to increases in personnel-related expenses of $1.6 million, primarily due to increased headcount and also due to higher salaries and commissions, marketing-related consulting expenses of $1.4 million primarily due to research and speaker programs, and facilities costs of $0.6 million.

For the six months ended June 30, 2007, selling and marketing expenses increased 22% to $40.3 million from $33.0 million during the comparable period in 2006. This increase was primarily due to increases in personnel-related expenses of $3.3 million, marketing-related consulting costs of $2.5 million, facility-related expenses of $0.6 million and information technology-related costs of $0.6 million.

Selling and Marketing Expenses

Selling and marketing expenses generally consist of costs of personnel, consulting and other expenses related to our selling and marketing functions, which are principally in support of our marketed products, and overhead costs and stock-based compensation expenses accounted for under SFAS 123(R) as a component of personnel-related costs.

Selling and marketing expenses for the three months ended June 30, 2007 increased 25% to $19.0 million from $15.2 million during the comparable period in 2006. This increase was primarily due to increases in personnel-related expenses of $1.6 million, primarily due to increased headcount and also due to higher salaries and commissions, marketing-related consulting expenses of $1.4 million primarily due to research and speaker programs, and facilities costs of $0.6 million.

For the six months ended June 30, 2007, selling and marketing expenses increased 22% to $40.3 million from $33.0 million during the comparable period in 2006. This increase was primarily due to increases in personnel-related expenses of $3.3 million, marketing-related consulting costs of $2.5 million, facility-related expenses of $0.6 million and information technology-related costs of $0.6 million.