Afexa Life Sciences Inc.
TSX VENTURE : CVQ

Afexa Life Sciences Inc.

February 06, 2006 09:00 ET

CV Technologies-Maker of COLD-fX'R'-Reports Sales Of $18.9 Million for Q1 and an Increase in Cash to $17.4 Million

EDMONTON, ALBERTA--(CCNMatthews - Feb. 6, 2006) - CV Technologies Inc. (TSX VENTURE:CVQ), maker of COLD-fX®, today released its financial and operating results for the first quarter of fiscal 2006 which includes the three months of October, November and December, 2005. The quarter was highlighted by record sales and earnings.

For the first three months ending December 31, 2005 (Q1, Fiscal 2006), the Company had net sales of $18.9 million compared to $11.3 million for the first quarter of last year, an increase of 68% year over year. Pretax earnings for Q1, 2006 increased to $7.4 million from $4.2 million last year, an increase of 76% year over year. Net earnings after tax were $4.4 million.

The Company continued to strengthen its financial position with cash on hand of more than $17 million compared to $1 million in the first quarter of last year, and working capital of $22 million compared to $7 million for the same period.

This strong performance in sales and profitability is a result of increased product sales and awareness in Ontario and Quebec, continued momentum and support within the West and increasing success with the Company's other lead products CELL-fX® and REMEMBER-fX®.

Of significance is the growth in sales of COLD-fX® relative to other cold remedies during this period. While COLD-fX®, CELL-fX® and REMEMBER-fX® - which fall into the broad category of cold remedies, supplements and vitamins - grew by 68% from October through to December 2005, ACNielsen data indicates that overall sales in this category increased by only 9% for the period. The strong sales growth posted by CV Technologies occurred even though Health Canada reports an unusually light flu season to date. Health Canada statistics show that so far this winter, labs have done 31,000 flu tests compared to 39,000 last year and 50,000 for the year previous.

CVT president and CEO, Dr. Jacqueline Shan said, "We are very pleased with our accomplishments over the past quarter. Our pace of growth is significantly better than competing products in the category of cough and colds. COLD-fX® remains the top seller in that category. Our growth in sales demonstrates that people believe in disease prevention."

A complete set of Interim Financial Reports will be made available on SEDAR (www.sedar.com)

ABOUT CV TECHNOLOGIES INC.

CV Technologies, founded in 1992, is a global leader in the development and commercialization of naturally derived, evidence based, clinically tested, medicines for disease prevention and health maintenance. The Company's lead product - COLD-fX®, - the top selling cold and flu remedy in Canada according to ACNielsen, strengthens the immune system and is widely used as a leading anti-cold, anti-flu, non-prescription treatment. COLD-fX's unique, patented, mechanism of action was developed and standardized according to the Company's ChemBioPrint ® process. The CBP® process precisely identifies the chemical profile and biological activity of multi-active components in natural compounds. The CBP® process provides a manufacturing protocol that ensures each batch of compound delivers verifiable and provable health benefits.

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. For this purpose, any statements that are contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "intends", "expects" and similar expressions are intended to identify forward-looking statements. Such risks and uncertainties include, but are not limited to, the need for capital, changing market conditions, completion of clinical trials, patient enrolment rates, uncertainty of pre-clinical, retrospective and early clinical trial results, the establishment of manufacturing processes and new corporate alliances, the timely development, regulatory approval and market acceptance of the Company's products, and other risks detailed from time to time in the Company's filings with Canadian securities authorities.

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

Contact Information