Innovotech Inc.
TSX VENTURE : IOT

Innovotech Inc.

May 19, 2010 09:00 ET

Innovotech Announces Unaudited Financial Statements for the Quarter Ended March 31, 2010

EDMONTON, ALBERTA--(Marketwire - May 19, 2010) - Innovotech Inc. (TSX VENTURE:IOT) today announced its unaudited financial and operational results for the quarter ended March 31, 2010.

Highlights:

  • Revenues more than double from previous year
  • Development plan for Agress™ continues
  • Innovotech receives Business Innovation Award

"The Company's revenue increased by 110% in the first quarter compared with the corresponding quarter last year" says Dr. James Timourian, Chief Financial Officer. "In addition, the Company was awarded two repayable agricultural grants totaling $952,000 to be dispersed over two years from Agriculture and Agri-Foods Canada. This financial position strengthens the Company's ability to develop its lead agricultural product Agress™, as well as market its breakthrough bioFILM PA™ test in human health. The Company expects demand for its products and services to continue to grow because of increasing awareness of the role biofilms play in the world and Innovotech's unique expertise and experience as an innovator in this area."

"The agricultural grants are significant as they will help finance the development of Agress™ for use in additional high value crops" explains Dr. Merle Olson, Research Director. "Concerns are mounting about the use of streptomycin in agriculture because of bacterial resistance that develops that could have consequences for human health. The agriculture industry had no safe, effective, and cost competitive substitute for streptomycin until the advent of Agress™, and the market is eagerly waiting for its regulatory approval."

Innovotech was honoured with the Edmonton Economic Development Corporation Business Innovation Award for 2009. The award recognized Innovotech's breakthrough diagnostic device bioFILM PA™ that improves the quality of life, reduces drug costs and shortens hospital stays for people suffering from chronic infections, specifically those associated with cystic fibrosis lung disease. "The most important benefit for me," states Ken Boutilier, President and CEO, "is that the publicity generated by the award has given more people with serious chronic infections hope as they learned that our technology has saved lives." The bioFILM PA™ test is for sale now in Canada.

Financial Summary        
($) Three month period ended March 31, 2010   Three month period ended March 31, 2009  
Revenues 454,370   216,000  
G&A 331,464   246,036  
R&D 150,418   192,150  
Net Loss (230,078 ) (367,269 )
Share Price $.78   $.84  
Cash 1,299,207   2,210,484  

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 may contain 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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