April 24, 2009 14:09 ET

Ceapro Reports Full-Year 2008 Financial and Operating Results

EDMONTON, ALBERTA--(Marketwire - April 24, 2009) - Ceapro Inc. (TSX VENTURE:CZO) ("Ceapro" or the Company") today released financial and operating results for the fiscal year ended December 31, 2008.

"The year 2008 was a year of renewed strategy and focus on our core expertise and on consolidation of our fundamentals related to production operations and quality control" said Gilles Gagnon, Acting President & CEO. "During this turnaround, our team of motivated people doubled the production of our key active ingredients which resulted in record sales of $4.23 million representing an increase of 23% over fiscal year 2007. We have now set the stage for solid financial and operational results in 2009", he added.



Mission: Our corporate mission and growth strategy is to develop and commercialize products for health markets with a focus on dermatology and metabolic diseases.

Strategy: Ceapro's corporate strategy is to leverage our core expertise- extracting selected active ingredients from natural sources- to implement profitable organic revenue growth while entering the nutraceutical and pharmaceutical sectors.

Legal affairs: As was announced in our News Release of March 16, 2009, the Company entered into a settlement agreement with all defendants in the Saskatchewan Government Growth Fund Case. This will eliminate distractions from the business and should help to reinforce investors' confidence in our Company.


Portfolio management: In May 2008, we opted for a new product strategy reducing our portfolio to three value drivers represented by Beta Glucan, Avenanthramides and Rosmarinic acid. Non-core products like CeaProve® were out-licensed while non-core projects like biofuels were abandoned. Also, in the veterinary sector, we have stopped manufacturing finished products and only provide pre-mixes containing Ceapro's active ingredients.

Pipeline: We continued to look for new lead products to fill the pipeline, licensing new plant varieties as candidates for the application of Ceapro's proprietary extraction technology and the development of new active ingredients like Rosmarinic acid, a new potent antioxidant agent.


Subsequent to year end, we entered into a development and distribution agreement with IR2Dx and German-based IKFE for the implementation of a major clinical trial with our CeaProve ® kit for the early detection of the pre-diabetes condition and for the commercialization of this kit to the medical markets.


- Total sales were $4,228,000 compared to $3,348,000 in 2007. Active ingredient sales rose $780,000 or 23% as a result of significant increased demand for our lead products: Beta Glucan, Avenanthramides and Oat Oil.

- Gross margins were at 38% compared to 48%, primarily as a result of the poor availability of quality raw material inputs and the effects of labour shortages which resulted in a greater reliance on overtime hours. Additional factors decreasing margins in 2008 included the hiring of additional plant operators to allow for a second shift of production activities, inflationary pressures, start up adjustments related to new equipment installed in 2007 and supply interruptions arising from critical raw material suppliers due to floods in the Midwestern United States during the summer of 2008.

- Net loss increased to $3,599,000 or $0.08 per share, compared with a net loss of $1,389,000 or $0.03 per share in 2007 due to an increase of $430,000 in general administration expenses related to the company's reorganization and legal costs. Non-recurring charges of $1,466,000 for disputed legal fees and the legal settlement with the Saskatchewan Claim were recorded during the year.

- Ceapro has increased its production capacity and expanded manufacturing operations at its plant in Leduc, Alberta. The scaled-up plant was commissioned in 2008 and we actually doubled the volume output through improved efficiency, focus on key products and better knowledge of the processes from skilled employees.

- Total revenues in the fourth quarter were $1,049,000, an increase of 35% compared with revenues of $776,000 in the same period of 2007.

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.

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.

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