Microbix Announces 24% Increase in Revenue and Improved Earnings in Second Quarter

TORONTO, May 12 /CNW/ - Microbix Biosystems Inc. (MBX:TSX) today
announced a 24-per-cent increase in revenue and improved earnings for the
second quarter ended March 31, 2005.
Revenue for the second quarter totalled $1,036,961, compared to $834,561
in the same period of fiscal 2004. The company recorded net profit of $132,230
for the quarter, compared to a net loss of $55,236 in the 2004 quarter. Cash
flow also increased in the period.

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                 Quarter Ended Quarter Ended
                    March 31      March 31    Year To Date  Year To Date
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                      2005          2004          2005          2004
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Revenue            $ 1,036,961   $   834,561   $ 2,229,665   $ 1,618,662
-------------------------------------------------------------------------
Net Profit (loss)  $   132,230   $   (55,236)  $   177,152   $  (205,614)
-------------------------------------------------------------------------
Net Profit (loss)
 Per Share         $      0.00   $     (0.00)  $      0.01   $     (0.01)
-------------------------------------------------------------------------
Cash flow          $   224,680   $   133,711   $   305,084   $   104,867
-------------------------------------------------------------------------

Microbix has now reported a profit and positive cash flow for three
consecutive quarters. These positive results reflect the Company's growing
product sales and also the licensing fees received from a major international
vaccine producer for the exclusive right to evaluate Microbix' proprietary 
flu-vaccine technology. This technology is designed to significantly boost the
production yield of influenza vaccine.
Microbix is now focused on supporting and collaborating with its partner
in the evaluation period, which ends June 30, 2005. The Company has moved to
protect the proprietary technology by submitting patent applications in a
number of countries. Recently, the Company received confirmation that its
application for accelerated review has been accepted by the U.S. Patent and
Trademark Office, which should result in a patent being granted in 2006.
Microbix continues to maintain a healthy profit margin due to improved
productivity in the core business of manufacturing infectious disease
antigens. The significant profits have occurred despite the decline in value
of the U.S. dollar over the last two years - more than 75 per cent of Company
revenues are denominated in U.S. dollars.
"These financial results are a big accomplishment," said William J.
Gastle, President and CEO. "We are also progressing nicely on our main product
initiatives in biotherapeutics and vaccine technology. We expect this solid
performance to continue through the year."

Microbix specializes in developing proprietary biological technologies
and then commercializing those technologies through global partners. Its
products include biotherapeutic drugs, vaccines, and infectious disease
diagnostics. Its objective during the next decade is to develop a pipeline of
products and technologies for what is expected to be a multi-billion dollar
biologics market worldwide. Established in 1988, Microbix is headquartered in
Toronto.

This press release contains forward-looking statements, which are subject
to risks and uncertainties that could cause actual results to differ
materially from those set forth in the forward-looking statements. These
forward-looking statements represent the Company's judgment as of the date of
this press release. The Company disclaims any intent or obligation to update
these forward-looking statements.

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