Microbix Announces First Quarter Results

TORONTO, Feb. 13 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) today announced results for the first quarter ended December 31, 2007.

Operating Highlights:

-   Microbix raised $6.825 million in equity through a brokered private
    placement financing with significant institutional investor
    participation. The funds will be used to expand its manufacturing
    plant and to accelerate development of SST(TM).

-   The base virology business recorded another solid quarter, with sales
    up 54% over the same period a year earlier.

-   The Company's VIRUSMAX(TM) technology was granted patents in the U.S.
    and Australia (patents were already in place in Canada and India).
    Microbix is now in a strong position to partner with vaccine
    producers, and it is currently attracting global interest. To date,
    letters of intent for licensing have been signed with two vaccine
    manufacturers.

-   Microbix CEO William J. Gastle met with high-ranking officials in
    China to formalize the licensing agreement for the Company's SST(TM)
    technology and to discuss other business opportunities. As announced
    earlier, the Animal Fine Breeding Station of Hebei Province has
    agreed to become the exclusive distributor of SST(TM) in that
    country.

Subsequent to the Quarter:

Microbix and ImaRx Therapeutics, Inc. (Nasdaq: IMRX) announced they had signed a Letter of Intent under which Microbix will manufacture an FDA-approved urokinase drug for ImaRx (currently marketed under the brand name Abbokinase(R)) which has been used to treat pulmonary embolism for over 20 years in the U.S.

ImaRx intends to transfer the manufacturing process and NDA (New Drug Approval) to Microbix and begin purchasing the drug from Microbix as its existing inventory is depleted in approximately two years. ImaRx currently generates about $3 million in sales of Abbokinase per quarter, and this is projected to grow once a long-term supply is established with Microbix.

The ImaRx deal will shorten Microbix' timeline to commercial production of new indications, including catheter management, oncology and ophthalmology, due to the acquisition of the Abbokinase NDA.

The SST(TM) development team has been building on its findings relating to the family of proteins that are determinative for X and Y chromosome-bearing sperm. Recent discoveries indicate additional proteins have been identified which will expand the intellectual property estate. Microbix will invest more time building a solid patent foundation. In vitro fertilization studies are to progress as planned. Initiation of field trials will await the outcome of the further work now underway.

Financial Results:

Consistent with its long-term strategy, Microbix continued to make significant investments in developing its three major products and in expanding its core production facilities.

Sales for the first quarter were $1,036,851 - an increase of 54% over the first quarter of fiscal 2007. The quarter-over-quarter increase in the value of the Canadian dollar, compared to the U.S. dollar, reduced sales by more than 10%. The net loss for the quarter was $1,012,730 or 2 cents a share compared to a net loss of $482,127 or 1 cent a share in the first quarter last year. The increased loss resulted from costs associated with the equity financing, the ongoing Urokinase financing and maintenance of the facility, meeting with potential partners for the VIRUSMAX(TM) technology, and expanding the SST(TM) development. Cash flow was positive at $5,602,173 compared to a negative amount of $301,667 a year earlier. This change resulted from the equity issue during the quarter.

The ongoing expenses will be significantly reduced upon financing Urokinase.

                                          For the 3 Months Ended Dec. 31

                                                       2007       2006

Sales                                              $1,036,851   $672,484
Net Profit (Loss)                                  (1,012,730)  (482,127)
Net Profit (Loss) per share                             (0.02)     (0.01)
Cash Flow                                           5,602,173   (301,667)

"We now have a solid cash position along with the scientific expertise to achieve what we have set our sights on," said Mr. Gastle. "Commercialization of any one of our major products would be a significant win as each has the potential for annual sales in the hundreds of millions of dollars."

Microbix specializes in the development of biological technologies and commercializing them through global partners. The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. 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 including the risks associated with failure to develop and commercialize Urokinase, inability to complete financing, non-adoption of the catheter clearing product, non-adoption of the drug combination, resistance to business model for commercialization and implementation; risks associated with commercializing the technologies; and risks associated with the efficacy of the drug combination in cancer treatment or catheter clearance product; risks associated with the ability to license Vaccine Technology to industry, risks associated with failure to develop and commercialize SST; non-adoption of SST. 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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