Immunotec Announces Financial Results for the Third Quarter Ended July 31, 2011 and Changes to its Board

VAUDREUIL-DORION, QUEBEC--(Marketwire - Sept. 9, 2011) - Immunotec Inc. (TSX VENTURE:IMM), a Canadian based company and a leader in the wellness industry (the "Company"), today reported financial results for the third quarter of fiscal year 2011.

"We are very pleased with our overall performance" said Robert Henry, Immunotec's Executive Chairman and CEO; "We remain confident and focus on growing our markets despite a difficult worldwide economic climate".

At yesterday`s meeting, the Board of Directors announced the resignation of Mr. Jean La Couture, Director and Chairman of the Audit Committee to be effective September 30, 2011. The Board of Directors also approved the nomination of Mr. Rod Budd for this role starting on October 1, 2011 and the nomination of Mr. Charles Orr as lead Director. Mr. Orr has been a Director of the Company since 2006.

On behalf of the Immunotec Board of Directors "We want to thank Jean for his five years of service on Immunotec's Board. Jean has been a valuable contributor to the Company. We acknowledge the work he did during the CEO transition.

"We are pleased to welcome Rod. His business experience through 25 years of partnership at Ernst & Young will be of great value to our Company." said Robert Henry, Immunotec's Executive Chairman and CEO.

On September 8, 2011 the Board of Directors approved two grants of options. One for Mr. Henry which entitles him to acquire up to 500,000 common shares of the Company and the other one to Mr. Orr which entitles him to acquire up to 25,000 common shares of the Company. Both grants will have an exercise price of $0.24 per share, representing a premium over $0.17, being the closing price of the Company's Shares on the TSX-Venture Exchange on September 7^th, 2011 the trading day preceding the grant.

Highlights for Q3

• Q3-Network sales reached $9.5M an increase of 11% compared to the previous year.
  
  
• Total consolidated revenues, increased by 4% reaching $31.7M in 2011 vs. $30.3M in 2010.
  
  
• Q3-Sales incentives reached a rate of 50%, compared with 47% for the same period last year, as a result of strong new recruitment and moving up bonuses paid as part of the compensation plan. This increase in commission payout, compared to the previous year was a trend first noticed early in the new fiscal year and is in direct relation with strong recruitment in the Mexican territory.
  
  
• Q3-Selected expenses, as defined by Administrative, Marketing and selling, Quality and development costs reached $2.8M a decrease of 10% over the previous year as a result of continued modernization effort and new tools announced and deployed to the field during the quarter.
  
  
• Net earnings and comprehensive income totalled $99 thousand for the quarter ending July 31, 2011, compared to a net loss of ($393) thousand for 2010. The total basic and fully diluted earnings per share for the same period was $0.001 in 2011 compared to a loss of ($0.006) per share for the same period in Fiscal 2010.
  
  
• Subsequent to the quarter, the Company signed a financing letter of offer with a leading Canadian institution. The offer comprises several financing facilities design to support the Company in its international development and general working capital need and will replace the existing debt currently in its balance sheet.
  
  

About Immunotec Inc.

Immunotec is a world class business opportunity supported by unique scientifically proven products that improve wellness. Headquartered with manufacturing facilities near Montreal, Canada, the Company also has distribution capacities to support its commercial activities in Canada and internationally to the United States, Europe, Mexico and The Caribbean.

The Company files its consolidated financial statements, its management and discussion analysis report, its press releases and such other required documents on the SEDAR database at www.sedar.com and on the Company's website at www.immunotec.com. The common shares of the Company are listed on the TSX Venture Exchange under the ticker symbol IMM.

Immunotec Inc.

Interim Consolidated Balance Sheet

(Unaudited)

		As at July 31,		As at October 31,
		2011		2010
		$		$
ASSETS
Current
	Cash	1,810,470		2,936,456
	Accounts receivable	385,630		782,557
	Income taxes receivable	10,123		-
	Inventories	3,620,908		2,605,371
	Prepaid expenses	536,268		382,794
	Future income taxes	96,000		103,099
		6,459,399		6,810,277
Long-term
	Property, plant and equipment	5,369,498		5,674,090
	Intangible assets	2,142,470		2,456,651
	Goodwill	833,559		833,559
	Future income taxes	2,767,757		2,382,148
	Other assets	484,349		484,349
		18,057,032		18,641,074
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities
	Demand loan	866,667		1,000,000
	Accounts payable	1,822,008		1,593,697
	Accrued liabilities	3,108,392		2,707,076
	Customer deposits	343,684		274,051
	Income taxes payable	-		2,041
	Other liability - current portion (note 3)	143,443		147,218
		6,284,194		5,724,083
Other liability (note 3)		124,732		239,622
		6,408,926		5,963,705
Shareholders' deficit
	Share capital (note 4)	3,465,548		3,465,548
	Other equity - Stock options (note 5)	1,910,884		1,907,584
	Contributed surplus	11,337,796		11,337,796
	Deficit	(5,066,122	)	(4,033,559	)
		11,648,106		12,677,369
		18,057,032		18,641,074
Contingency (note 9)

The accompanying notes are an integral part of the consolidated financial statements.

Immunotec Inc.

Interim Consolidated Statements of Changes in Shareholders' Deficit

(Unaudited)

	Number of common shares	Share capital $	Other equity - Stock options $	Contri- buted surplus $	Deficit $		Total $
Balance - October 31, 2009	69,994,300	3,465,548	1,770,093	11,337,796	(2,646,399	)	13,927,038
Net profit	-	-	-	-	9,419		9,419
Stock- based compen- sation (note 5)	-	-	106,815	-	-		106,815
Balance -July 31, 2010	69,994,300	3,465,548	1,876,908	11,337,796	(2,636,980	)	14,043,272
Balance - October 31, 2010	69,994,300	3,465,548	1,907,584	11,337,796	(4,033,559	)	12,677,369
Net loss	-	-	-	-	(1,032,563	)	(1,032,563	)
Stock- based compen- sation (note 5)	-	-	3,300	-	-		3,300
Balance - July 31, 2011	69,994,300	3,465,548	1,910,884	11,337,796	(5,066,122	)	11,648,106

The accompanying notes are an integral part of the consolidated financial statements.

Immunotec Inc.

Interim Consolidated Statement of Earnings (Loss) and Comprehensive Income

(Loss) (Unaudited)

		For the three-month period ended				For the nine-month period ended
				July 31,				July 31,
		2011		2010		2011		2010
		$		$		$		$
Revenues
	Network sales	9,540,766		8,550,885		27,473,893		25,893,200
	Other revenue	1,115,894		1,406,377		4,218,179		4,363,615
		10,656,660		9,957,262		31,692,072		30,256,815
Variable costs
	Cost of goods sold (excluding amortization)	1,831,242		1,977,025		5,515,150		5,615,122
	Sales incentives - Network	4,773,420		3,988,117		14,203,931		12,385,288
	Other variable costs	961,154		940,940		2,869,059		2,733,874
	Margin before expenses	3,090,844		3,051,180		9,103,932		9,522,531
Expenses
	Administrative	1,550,710		1,661,534		4,782,412		4,386,387
	Marketing and selling	959,162		1,090,737		3,527,444		2,917,788
	Quality and development costs	256,144		317,191		733,009		857,395
	Amortization	295,430		295,819		878,402		871,130
	Restructuring charges (note 7)	206,907		156,813		1,015,289		156,813
	Recovery of an impaired investment (note 8)	(378,560	)	-		(517,869	)	-
	Stock-based compensation (note 5)	10,043		29,299		3,300		106,815
	Foreign exchange (gain) loss	17,924		(14,429	)	(18,477	)	(16,271	)
		2,917,760		3,536,964		10,403,510		9,280,057
Earnings (loss) from continuing operations before financing expenses and income taxes		173,084		(485,784	)	(1,299,578	)	242,474
	Financing expenses	23,948		-		91,791		-
Earnings (loss) from continuing operations before income taxes		149,136		(485,784	)	(1,391,369	)	242,474
Income taxes (recovery)
	Current	15,020		(12,062	)	19,704		43,099
	Future	35,276		(93,240	)	(378,510	)	35,890
Earnings (loss) from continuing operations		98,840		(380,482	)	(1,032,563	)	163,485
Loss from discontinued operations		-		(12,810	)	-		(154,066	)
Net earnings (loss) and comprehensive income
(loss)		98,840		(393,292	)	(1,032,563	)	9,419
Basic and diluted net earnings (loss) per share
	Continuing operations	0.001		(0.006	)	(0.015	)	0.002
	Discontinued operations	(0.000	)	(0.000	)	(0.000	)	(0.002	)
Total basic and diluted net earnings (loss) per share		0.001		(0.006	)	(0.015	)	0.000
Weighted average number of common shares outstanding during the period
	Basic and diluted	69,994,300		69,994,300		69,994,300		69,994,300

The accompanying notes are an integral part of the consolidated financial statements.

Immunotec Inc.

Consolidated Statements of Cash Flows

(Unaudited)

		For the three-month period ended				For the nine-month period ended
				July 31,				July 31,
		2011		2010		2011		2010
		$		$		$		$
Operating activities
Net earnings (loss)		98,840		(393,292	)	(1,032,563	)	9,419
Loss from discontinued operations		-		(12,810	)	-		(154,066	)
Earnings (loss) from continuing operations		98,840		(380,482	)	(1,032,563	)	163,485
Add (deduct) non cash items:
	Amortization of property, plant and equipment	135,898		150,044		409,398		443,767
	Amortization of intangible assets	159,532		145,775		469,004		427,363
	Net loss on disposal of property, plant and equipment	-		474		-		474
	Other receivables	-		26,750		-		70,192
	Gain on partial settlement of the other liability	(56,950	)	-		(56,950	)	-
	Unrealized foreign exchange	5,741		-		(22,579	)	-
	Accreted interest	9,368		-		44,436		-
	Future income taxes	35,276		(93,240	)	(378,510	)	35,890
	Stock-based compensation	10,043		29,299		3,300		106,815
Cash received prior to working capital variation		397,748		(121,380	)	(564,464	)	1,247,986
Net change in non-cash working capital		382,911		198,387		(84,988	)	(510,754	)
Cash (used) received from operating activities		780,659		77,007		(649,452	)	737,232
Investing activities
	Business acquisition	-		(403,510	)	-		(403,510	)
	Additions to property, plant and equipment	(25,114	)	(105,741	)	(104,806	)	(189,605	)
	Additions to intangible assets	(24,146	)	(40,609	)	(154,823	)	(140,595	)
	Proceed from disposal of property, plant and equipment	-		400		-		400
Cash used from investing activities		(49,260	)	(549,460	)	(259,629	)	(733,310	)
Financing activities
	Reimbursment of demand loan	(50,000	)	-		(133,333	)	-
	Reimbursment of other liability	(83,572	)	-		(83,572	)	-
Cash used from financing activities		(133,572	)	-		(216,905	)	-
Net (decrease) increase in cash from continuing operations		597,827		(472,453	)	(1,125,986	)	3,922
Net decrease in cash from discontinued operations
Operating activities		-		(12,810	)	-		(154,066	)
Net (decrease) increase in cash during the period		597,827		(485,263	)	(1,125,986	)	(150,144	)
Cash at the beginning of the period		1,212,643		2,597,940		2,936,456		2,262,821
Cash at the end of the period		1,810,470		2,112,677		1,810,470		2,112,677
Supplemental information
Income tax paid (recovered) during the period		(53,011	)	(45,097	)	(47,634	)	(33,683	)

The accompanying notes are an integral part of the consolidated financial statements.