CEAPRO INC.
TSX VENTURE : CZO

CEAPRO INC.

August 27, 2009 07:00 ET

Ceapro Reports 2009 Second Quarter Financial Results and Record Revenues and Profitability for the First Half of 2009

EDMONTON, ALBERTA--(Marketwire - Aug. 27, 2009) - Ceapro Inc. (TSX VENTURE:CZO)

- Second consecutive profitable quarter in 2009

- Q2 2009 gross margins increased by 18.7% over Q2 2008

- Q2 2009 operating profit of $216,000 compared to a loss of $181,000 in Q2 2008

- Six months 2009 revenues increase by 17.6% compared to Six months 2008 revenues

- Six months 2009 gross margin improved by 81.5%

- Six months operating profit of $449,000 in 2009 compared to a loss of $618,000 in 2008

Ceapro Inc. (TSX VENTURE:CZO) today announced the best financial results in the company's history. While second quarter revenues reached $1.21 million compared to $1.45 million for the same period last year, the company has achieved an operating profit of $216,000 for the second quarter compared to a loss of $181,000 in the second quarter in 2008. This is the second consecutive quarter that the company has shown an operating profit.

The gross margin percentage for the quarter was 63.1% compared to 44.4% in the same period last year. Net income for the quarter was $466,000, an improvement of $1,553,000 when compared with a loss of $1,087,000 in the same period last year. Net income includes the reversal of legal fees in Q2 2009 amounting to $426,000.

For the six months period ending June 30, 2009, Ceapro's total revenues increased by 17.6% to $2.7 million compared to $2.3 million for the same period in 2008. The company showed an operating profit of $449,000 for the first half of 2009 compared to a loss of $618,000 for the same period in 2008.

The gross margin percentage for the first half of 2009 was 62.5% compared to 40.5% in the same period last year. Net income for the first half of 2009 was $569,000, an improvement of $2,265,000 when compared with a loss of $1,695,000 in the same period last year. Net income includes the reversal of legal fees in Q2 2009 amounting to $426,000.

"This is the strongest six months in the company history. We are very pleased to show profitability for the quarter and on a year-to-date basis. This reflects the efforts deployed by each employee during an intense period where we have successfully implemented new operational efficiencies at all levels while offering a sales mix of products with higher margins due to the achievement of improved productivity." stated Gilles Gagnon, Acting President and CEO. "It is very rewarding to see this growth in such challenging economic times. These results are in line with our previously announced plans to be profitable by Q2 2009" he added.

The complete audited annual report and financial statements are available for review on SEDAR at http://sedar.com/Ceapro and on the Company's website at www.ceapro.com .

About Ceapro Inc.

Ceapro Inc. is a Canadian growth-stage biotechnology company. Primary business activities relate to the development and commercialization of active ingredients for personal care and cosmetic industries using proprietary technology and natural, renewable resources.

To learn more about Ceapro, visit www.ceapro.com



CEAPRO INC.
Consolidated Statements of Net Income (Loss), Comprehensive Income (Loss)
and Deficit

Unaudited
Six Months Ended June 30 Quarters Ended June 30
2009 2008 2009 2008
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Revenue
Sales $2,713,927 $2,307,586 $1,212,018 $1,455,619
Cost of goods
sold 1,018,818 1,373,884 446,775 809,330
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Gross margin 1,695,109 933,702 765,243 646,289
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Expenses
General and
administration 807,516 854,090 417,194 445,977
Royalties 214,458 218,034 76,431 137,659
Sales and marketing 85,063 274,279 24,761 136,517
Amortization 99,805 163,111 11,511 85,982
Interest on
long-term debt 38,794 42,544 18,880 21,088
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1,245,636 1,552,058 548,777 827,223
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Income (loss) from
operations 449,473 (618,356) 216,466 (180,934)
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Other income
(expenses)
Research and
product
development (281,195) (339,320) (145,624) (137,160)
Bio-energy
feasibility study - (14,371) - 3,865
Other income
(expenses) (25,870) 31,562 (31,210) (17,626)
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(307,065) (322,129) (176,834) (150,921)
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Comprehensive
income (loss)
before SGGF legal
fees recovery
(expense) and
income taxes 142,408 (940,485) 39,632 (331,855)

SGGF legal fees
recovery (expense) 426,300 (755,469) 426,300 (755,469)
Income taxes
Current 241,000 - 184,000 -
Reduction as a
result of
applying non-
capital losses
carried forward
against the
current period's
taxable income (241,000) - (184,000) -
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NET INCOME (LOSS)
AND COMPREHENSIVE
INCOME (LOSS) FOR
THE PERIOD 568,708 (1,695,954) 465,932 (1,087,324)

Deficit, beginning
of period (7,321,541) (3,722,072) (7,218,765) (4,330,702)
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Deficit, end of
period $(6,752,833) $(5,418,026) $(6,752,833) $(5,418,026)
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Net income (loss)
per share:
Basic $0.01 $(0.04) $0.01 $(0.02)
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Diluted $0.01 $(0.04) $0.01 $(0.02)
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Shares o/s 51,710,063 47,050,063 51,710,063 47,050,063
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