Innovotech Inc.

Innovotech Inc.

November 24, 2006 12:37 ET

Innovotech Inc. Announces Unaudited Financial Statements for the Third Quarter Ended September 30, 2006

EDMONTON, ALBERTA--(CCNMatthews - Nov. 24, 2006) - Innovotech Inc (TSX VENTURE:IOT) today announced its unaudited financial and operational results for the three and nine month period ended September 30, 2006.


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

- Agreement reached for contract manufacture of key component of bioFILM PA™ kit

"The successfully completed private placement of $550,000 provides Innovotech with additional funds to drive its product development program and strengthen its IP portfolio. The fact that the company now has a contract manufacturing agreement in place for the last key component of the kit represents another milestone in our product development" said Dr. James Timourian, CFO of Innovotech.

Besides the recently approved bioFILM PA™ susceptibility kit, the company has been field testing an agricultural agent with high activity against bacterial and fungal biofilms. Registration of this product in the USA and Canada has been initiated.

Financial Summary

3-Month period 9-Month period 3-Month period 9-Month period
ended September ended September ended September ended September
30, 2006 30, 2006 30, 2005 30, 2005

Revenues 136,828 420,497 263,255 590,707

G&A 133,713 521,783 123,213 411,895

R&D 97,322 278,512 71,169 159,105

Net Income
(Loss) (114,088) (445,789) 26,901 (182,122)

Results of Operations

In the three-month period ended September 30, 2006, the Company incurred a net loss of $114,088 compared to net income of $26,901 in the same period 2005. For the nine-month period ended September 30, 2006, the Company recorded a net loss of $445,789 compared to a net loss of $182,122 in the same period 2005. The increase in the Company's net loss is primarily attributable to increased development activities to commercialize its lead product the bioFILM PA™ antimicrobial susceptibility kit, and reduced revenues from contract research and MBEC Assay ™ sales.

Innovotech stock trades on the TSX Venture Exchange as IOT. It closed on September 30, 2006 at $0.36 per share.

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. and/or its subsidiary MBEC Bioproducts 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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