Immunotec Announces Positive First-Quarter Results and the Return to Profitability

VAUDREUIL-DORION, QUEBEC--(Marketwire - March 29, 2010) -

• Active Distributors Up 8% to 27,000

• Earnings from continued operations to $343 thousand

Immunotec Inc. (TSX VENTURE:IMM), a Canadian based company and a leader in the wellness industry (the "Company"), today reported positive results with First-quarter 2010, earnings from continuing operation profit of $343 thousand compared with a loss of $201 thousand in the prior-year quarter.

For the quarter ended January 31, 2010, EBITDA before losses from discontinued operations totalled $737 thousand or 7% of total income, compared to $4 thousand or 0% of total income for Fiscal 2009.

"A return to profitability after a challenging 2009, is a demonstration that our reorganized business model is starting to create shareholder value", said James A. Northrop, President and CEO of Immunotec Inc. "Our message on Health Improvement and Income Opportunity seems well received by our distributors to establish us as a first class multi- level marketing company".

Fiscal 2010 Financial Results Highlights:

• Network Sales reached $8.9M compared to $9.2M for the same period in 2009, a decline of $0.3M or a 4% decrease attributed to foreign exchange rates stemming from a stronger Canadian dollar in 2010. The relative contribution in sales last year resulting from this variation and for the same period is approximately $0.6 M. The average Canadian dollar value used during the period was 1.0571 during fiscal 2010 compared to 1.2264 for the same period of 2009.

• Other Revenues that include international distribution revenues, freight and shipping, charge backs and educational material reached $1.6M in 2010 an increase of 11% compared to $1.5M in 2009.

• Margin before expenses, as a percentage of net sales improved to 32% compared to 29% for year 2009. This improvement, despite the lower revenues, is mostly attributed to certain amendments made on the sales incentive program launch in 2009. Network Sales incentives is the largest segment of variable expenses of the Company. As a percentage of Network sales, the incentive program represented an average of 48% of Network revenues, an improvement from the 53% level in 2009.

• Administration, Marketing, Sales, Quality Control and Research & Development expenses were $2.6M representing 25% of total revenues and improvement versus the 29% ratio for the previous year.

• Net earnings (loss) and comprehensive income (loss), including losses from discontinued operations, achieved $209 thousand or $0.003 per share, compared to a loss of $201 thousand or ($0.003) per share for 2009.

About Immunotec Inc.

Immunotec is a Network Marketing Company involved in the direct selling of scientifically validated natural health products and dietary supplements. The Company offers a lucrative business opportunity to its independent distributors. This business model provides Immunotec's network of people with an opportunity to earn a steady and recurring income, directly based on their level of involvement and performance. Individual distributors build their business by conveying product information and selling product to customers and by building teams of distributors to expand geographic penetration and market coverage to larger populations of customers.

Headquartered with manufacturing facilities near Montreal, Canada, the Company also subcontracts certain distribution logistics and capacity to support its activities in the United States, Europe and The Caribbean.

The Company files its consolidated financial statements, its management and discussion analysis report, its press releases and such other required documents on the SEDAR database at www.sedar.com and on the Company's website at www.immunotec.com. The common shares of the Company are listed on the TSX Venture Exchange under the ticker symbol IMM.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Immunotec's most recent Management's Discussion and Analysis, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.

Immunotec Inc.
Interim Consolidated Balance Sheet
(Unaudited)
		As at January		As at October
		31, 2010		31, 2009
		$		$
ASSETS
Current
	Cash	2,344,831		2,262,821
	Accounts receivable	584,798		201,841
	Income taxes receivable	35,742		70,306
	Inventories	3,450,779		3,941,847
	Prepaid expenses	540,867		436,251
	Future income taxes	82,115		90,133
		7,039,132		7,003,199
Long-term
	Property, plant and equipment	5,954,856		6,068,313
	Intangible assets	2,375,673		2,505,937
	Goodwill	499,541		499,541
	Future income taxes	1,894,528		1,969,403
	Other assets (note 3)	656,397		699,839
		18,420,127		18,746,232
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
	Accounts payable	2,176,760		2,629,247
	Accrued liabilities	1,666,131		1,881,390
	Customer deposits	391,294		308,557
		4,234,185		4,819,194
Shareholders' Equity (Deficit)
	Share capital (note 4)	3,465,548		3,465,548
	Other equity - Stock options (note 5)	1,819,696		1,770,093
	Contributed surplus	11,337,796		11,337,796
	Deficit	(2,437,098	)	(2,646,399	)
		14,185,942		13,927,038
		18,420,127		18,746,232

Immunotec Inc.
Interim Consolidated Statements of Changes in Shareholders' Equity
(Unaudited)
	Number of common shares		Share capital		Other equity -Stock options		Contributed surplus		(Deficit) Retained earnings			Total
			$		$		$		$			$
Balance - October 31, 2008	69,994,300		3,465,548		1,414,885		11,332,143		1,898,637			18,111,213
Net loss	-		-		-		-		(201,205	)		(201,205	)
Stock-based compensation (note 5)	-		-		122,316		-		-			122,316
Balance - January 31, 2009	69,994,300		3,465,548		1,537,201		11,332,143		1,697,432			18,032,324
Balance - October 31, 2009	69,994,300		3,465,548		1,770,093		11,337,796		(2,646,399	)		13,927,038
Net profit	-		-		-		-		209,301			209,301
Stock-based compensation (note 5)	-		-		49,603		-		-			49,603
Balance - January 31, 2010	69,994,300		3,465,548		1,819,696		11,337,796		(2,437,098	)		14,185,942

Immunotec Inc.
Interim Consolidated Statement of Earnings (Loss) and Comprehensive Income
(Unaudited)
Quarter ended January 31		2010		2009
		$		$
REVENUES
	Network sales	8,865,644		9,227,007
	Other revenue	1,615,426		1,464,502
		10,481,070		10,691,509
VARIABLE COSTS
	Cost of goods sold (excluding amortization)	2,022,251		1,729,462
	Sales incentives - Network	4,248,329		4,868,649
	Other variable costs	900,572		956,889
	Margin before expenses	3,309,918		3,136,509
Expenses
	Administrative	1,459,915		1,593,937
	Marketing and Selling	860,602		1,292,308
	Quality and Development costs	251,903		246,579
	Amortization	287,029		263,828
	Financial charges (revenues)	-		(21,513	)
		2,859,449		3,375,139
Earnings (Loss) from continuing operations before income taxes		450,469		(238,630	)
Income taxes (Recovery)
	Current	24,986		59,452
	Future	82,893		(96,877	)
Earnings (Loss) from continued operations		342,590		(201,205	)
Loss from discontinued operations		(133,289	)	-
Net earnings (loss) and comprehensive income (loss)		209,301		(201,205	)
Basic and diluted net earnings (loss) per share
	Continuing operations	0.005		(0.003	)
	Discontinued operations	(0.002	)	-
Total basic and diluted net earnings (loss) per share		0.003		(0.003	)
Weighted average number of common shares outstanding during the period
Basic and diluted		69,994,300		69,994,300

Immunotec Inc.
Consolidated Statement of Cash Flows
(Unaudited)
			2010		2009
Quarter ended January 31			$		$
Operating activities
Net earnings (loss)			209,301		(201,205	)
Loss from discontinued operations			(133,289	)	-
Earnings (Loss) from continuing operations			342,590		(201,205	)
Add (deduct) non cash items:
		Amortization of property, plant and equipment	141,146		132,408
		Amortization of intangible assets	145,883		131,420
		Other receivable	43,442		-
		Future income taxes	82,893		(96,877	)
		Stock-based compensation	49,603		122,316
Cash received prior to working capital variation			805,557		88,062
Net change in non-cash working capital			(546,950	)	(356,999	)
Cash (used) received in operating activities			258,607		(268,937	)
Investing activities
	Additions to property, plant and equipment		(27,689	)	(35,305	)
	Additions to intangible assets		(15,619	)	(127,174	)
	Research and development tax credits		-		(13,272	)
Cash used in investing activities			(43,308	)	(175,751	)
Net increase (decrease) in cash from continuing activities			215,299		(444,688	)
Net (decrease) in cash from discontinued activities
		Operating activities	(133,289	)	-
Net increase (decrease) in cash during the quarter			82,010		(444,688	)
Cash at the beginning of the quarter			2,262,821		6,138,454
Cash at the end of the quarter			2,344,831		5,693,766
Supplemental information
Income taxes (recovered) paid during the quarter			(7,983	)	33,939