Innovotech Inc.

Innovotech Inc.

April 26, 2007 12:24 ET

Innovotech Inc. Announces Audited Financial Statements for the Year-Ended December 31, 2006

EDMONTON, ALBERTA--(CCNMatthews - April 26, 2007) - Innovotech Inc (TSX VENTURE:IOT) today announced its audited financial and operational results for the year- ended December 31, 2006.


- Health Canada approval of bioFILM PA™ for commercial sale in Canada and continued advancement of US Food & Drug Administration approval.

- Initiation of regulatory approval for seed treatment product with Pest Management Regulatory Agency (PMRA) division of Health Canada and Environmental Protection Agency (EPA) in the United States.

- Private Placement of $ 550,000 successfully completed in September 2006.

Results of Operations

During 2006, the company has made significant progress in advancing its research and development programs in the medicinal and agricultural fields.

- Innovotech's bioFILM PA™ susceptibility test kit has been approved for sale in Canada in August 2006 and field application trials have commenced. Field application trials are directed at use in the areas of cystic fibrosis, ventilator associated pneumonia, medical device associated infections and wound infections. Application for approval in the USA with the Food & Drug Administration is underway.

- The company's lead product in the agricultural market is a novel treatment for bacterial and fungal biofilms of seeds. The product has shown very high efficacy and broad spectrum activity against common microorganisms affecting legumes and other crops. Trials have also shown increased germination of diseased seeds and seeds grown under conditions that impair germination (e.g. high moisture) when treated with this product. These promising results formed the basis for a regulatory product submission in Canada and the USA for a cost effective, environmentally friendly alternative to agricultural pesticides. The company is in the process of extending intellectual protection to cover a range of new applications identified for this active agent.

Funding for these projects was provided through a combination of a private placement, grant support and internally generated revenue from contract research activities.

"Health Canada approval of bioFILM PA™ has allowed the company to initiate several clinical and validation trials" said Dr. James Timourian, CFO of Innovotech. "The company's seed treatment product has shown improved efficacy against both bacterial and fungal biofilms, less environmental impact and cost effectiveness compared to existing products and has entered the registration process in the USA and Canada through the PMRA."

Financial Summary
Year ended December 31, 2006 Year ended December 31, 2005
Revenues 611,348 846,732
G&A 649,864 583,681
R&D 382,480 198,111
Net Income (Loss) (507,167) (160,587)

The Financial Statements are available at

Certain information contained in this document is forward-looking and is subject to unknown risks or uncertainties. The actual results, performance or achievements of Innovotech Inc. may differ materially from the results, performance or achievements expressed or implied by such forward-looking statements.

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

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