February 15, 2011 

For the quarter ended December 31, 2010, Microbix Biosystems Inc.  reported revenues of CAD812,694 (US$822,856), a 34% decrease from CAD1,226,538 (US$1,241,875) for the same period in 2009. 

The decline was primarily due to the timing of customer orders and, in particular, a one-time unplanned production adjustment by one large customer.  This long-term relationship will be returning to a regular delivery schedule during the next nine months. The negative impact of the strong Canadian dollar also impacted earnings for Microbix, which records most of its sales in US dollars and Euros.

Operating expenses declined nearly 20% compared to last year reflecting reduced spending on the pipeline projects as they transition to stand-alone status.  The net operating loss for the quarter was CAD734,360 (US$743,542) compared to a loss of CAD740,031 (US$749,284) for the same period last year. Cash flow for the quarter was CAD176,801 (US$179,012) compared to negative CAD467,388 (US$473,232) for the same period last year.  This improvement was the result of increased cash from operations, as well as a successful equity financing late in the quarter.

Microbix CEO, William J. Gastle, said, "The effects of a reduced burn rate on our three pipeline technologies is beginning to show in our results, as our focus shifts from pure product development activities, to the creation of operating partnerships designed to produce revenue streams for LumiSortâ„¢,  the Hunan joint venture in China, and Urokinase."

In December, Microbix announced it had formed Crucible International Biotechnologies Corp., which is being capitalised through an initial private offering of at least CAD2,800,000 (US$2,835,012).  Following this financing Microbix will own approximately 80% of Crucible, which will own all of the influenza vaccine assets of Microbix, including its VIRUSMAXâ„¢ technology and the company's 50% ownership interest in the Hunan joint venture. Microbix also announced a new partnership agreement on Lumisort, its proprietary semen sexing technology, in late fiscal 2010.