Microbix announces 54% gain in revenue, continued profitability in Third Quarter

TORONTO, Aug. 11 /CNW/ - Microbix Biosystems Inc. (MBX:TSX) today
announced a 54-per-cent increase in revenue and profitability for the third
quarter ended June 30, 2005. Microbix has now reported significant growth for
four consecutive quarters.
Revenue for the third quarter totalled $1,182,588, compared to $765,633
in the same period of fiscal 2004. Net profit was $66,567 for the quarter,
compared to a net loss of $276,136 in the 2004 third quarter.

<<
                        Quarter Ended June 30            Year To Date
                          2005          2004          2005          2004
-------------------------------------------------------------------------
Revenue            $ 1,182,588   $   765,633   $ 3,412,253   $ 2,384,295
-------------------------------------------------------------------------
Net Profit
 (loss)            $    66,567   $  (276,136)  $   243,719   $  (481,760)
-------------------------------------------------------------------------
Net Profit
 (loss) Per
 Share             $      0.00   $     (0.01)  $      0.01   $     (0.01)
-------------------------------------------------------------------------
Cash flow          $   (68,525)  $   156,898   $   236,559   $   261,765

The revenue and net income gains have occurred despite a decline in value
of the U.S. dollar, relative to other major currencies, over the past two
years. More than 75 per cent of company revenues are denominated in U.S.
dollars.
"The impressive third-quarter results reflect the success of our
strategies for growth," said William J. Gastle, President and CEO. "We serve
the diagnostic marketplace while investing in new product development."
Microbix is investing in new equipment to meet growing demand from major
customers for core business medical diagnostic products. This ongoing
investment will boost capacity, improve productivity, and facilitate ongoing
product enhancements, he said.
Licensing fees also contributed to the bottom-line success in the
quarter. These fees stem from products in the development pipeline. Microbix
continues to work with Genpharm Inc. toward commercialization of the clot-
busting drug, Urokinase. A major international vaccine manufacturer is
progressing with the evaluation of Microbix' proprietary flu vaccine
technology. This technology is designed to significantly boost the production
yield of influenza vaccine. The Company has moved aggressively to protect this
technology in several countries and expects a U.S. patent to be granted next
year. Microbix is also in discussions on two other products - a second protein
drug and a non-therapeutic biologic product.
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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