Immunotec Inc.

Immunotec Inc.

July 31, 2009 23:59 ET

Immunotec Inc. announces the closing of its Korean operations

VAUDREUIL-DORION, QC, July 31 - Immunotec Inc. (TSX-V:IMM)
announced today the closing of the Korean operations of its subsidiary,
Immunotec (Korea) Inc., located in Seoul, South Korea which took effect on the
close of business on July 29, 2009.

This closure is a direct result of litigation with a former
sub-distributor which obtained from the Seoul Central District Court the
issuance of an "Executory Preliminary Injunction" on July 13, 2009 against
Immunotec Korea Inc. to cease selling Immunocal products in Korea as the Court
concluded the Company was infringing on the former sub-distributor exclusive
distribution rights for these products.

Negotiations with the former sub-distributor which were initiated by the
Company to obtain the withdrawal of the Injunction failed resulting in the
decision to close the business since the appeals process to remove the
Injunction against the Company by the District Court could take many months.

Immunotec Korea began its operations in the second quarter ended April
30, 2009 recording net sales of $1,071,081. Net sales for the third quarter
ending July 31, 2009 taking into account a provision for returned products
will approximate $1,000,000. A provision for the costs associated with the
discontinuance of the operations will be recorded in the third quarter of
approximately $1.5 million.

We have instructed our Korean Legal Counsel to file an appeal of the
"Executory Preliminary Injunction" as well as to file a claim for damages
against the former sub-distributor for misrepresentations of facts on which
the Injunction was based.


Immunotec is located in a 37,000 square foot facility located in
Vaudreuil-Dorion, Quebec, Canada and also has a manufacturing facility located
in Blainville, Quebec, Canada and a distribution centre located in Swanton,
Vermont, USA. Immunotec is engaged primarily in the development and marketing
of natural health products, dietary supplements, food, vitamins and personal
care products, and natural health products, some of which are manufactured on
its behalf by third parties. Immunotec's products are distributed and sold in
Canada, the United States, the Republic of Ireland and the United Kingdom
through a network marketing system and exported in other countries under
exclusive distributorship agreements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

Contact Information

  • Richard Patte, CA, Chief Financial Officer,(450) 510-4445