Innovotech Inc.

Innovotech Inc.

November 21, 2008 13:03 ET

Innovotech Inc. Reports Third Quarter 2008 Financial Results

EDMONTON, ALBERTA--(Marketwire - Nov. 21, 2008) - Innovotech Inc. (TSX VENTURE:IOT) today announced its unaudited financial and operational results for the three and nine-month periods ended September 30, 2008.

The Company reported a net loss of $339,258 for the third quarter of 2008 compared to a net loss of $53,145 for the same period last year. The increase in net loss is primarily a result of a planned increased in R&D spending on the Company's lead development products.

The Company has maintained a strong Balance Sheet through the current economic turmoil and ended the quarter with cash reserves of over $2 million, which is sufficient to support operations until bioFILM PA™ and Agress™ produce sales revenue.

"Increased R&D spending continued in the third quarter as the Company prepared its two lead products, bioFILM PA™ and Agress™, for the final phases of development" stated Dr. James Timourian, CFO, Innovotech.

"Our novel seed treatment product Agress™ attracted interest from major global agricultural seed companies, and evaluation agreements to test Agress™ in combination with their proprietary products have been signed or are under negotiation. Based on feedback from the regulatory agencies, we expect regulatory approval for Agress™ mid to late 2009. An introductory offer to test bioFILM PA™ has been accepted by Canadian Cystic Fibrosis (CF) clinics, representing greater than 50% of patients with CF" continues Dr. Timourian. "This market acceptance step is a normal precursor to product sales in healthcare."

"The exercise of options and continued revenue from contract research meant that the Company was able to maintain cash reserves despite the increase in development spending" concludes Dr. Timourian.

Financial Summary

Three-month Three-month Nine-month Nine-month
period ended period ended period ended period ended
Sep 30, 2008 Sep 30, 2007 Sep 30, 2008 Sep 30, 2007
Revenues $ 247,890 $ 302,147 $ 966,165 $903,830
G&A $ 232,514 $ 180,335 $ 678,330 $522,078
R&D $ 235,731 $ 134,357 $ 503,512 $289,213
Net loss $(339,258) $ (53,145) $(652,869) $(45,286)

About Innovotech Inc:

Innovotech is a product development company focusing on the development of solutions to medical, agricultural and industrial problems caused by microbial biofilms. Biofilms are protected communities of microorganisms which are very common and very difficult to treat due to their inherent resistance. They have been implicated in a host of devastating infections in agriculture, human health and industry. No diagnostics or antibiotics are currently approved for use in infections involving biofilms.

This document contains forward-looking statements that are predictive in nature and subject to risks and uncertainties that cannot be predicted or quantified; consequently, actual results may differ materially from past results and those expressed or implied by any forward-looking statements. Factors that could cause or contribute to such risks or uncertainties include, but are not limited to: the regulatory environment including the difficulty of predicting regulatory outcomes; changes in the value of the Canadian dollar; the Company's reliance on a small number of customers including government organizations; fluctuations in operating results; government policies or actions; progress and cost of clinical trials; reliance on key strategic relationships; uncertainty related to intellectual property protection and potential costs associated with its defense; the Company's exposure to lawsuits and other matters beyond the control of management. Should known or unknown risks or uncertainties materialize, or should management's assumptions prove inaccurate, actual results could vary materially from those anticipated. The Company undertakes no obligation to publicly make or update any forward-looking statements, except as required by applicable law.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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