Ceapro Inc. Reports Full-Year 2009 Financial and Operating Results

EDMONTON, ALBERTA--(Marketwire - May 03, 2010) - Ceapro Inc. (TSX VENTURE: CZO) ("Ceapro" or the Company") today released financial and operating results for the fiscal year ended December 31, 2009.

2009 Highlights

--  Transitional year in implementing our new strategy which focuses on our
core expertise in extracting and commercializing selected high value
active ingredients
--  Successful implementation of operational efficiencies and corresponding
margin improvement.
--  Looked to expand manufacturing capabilities in conducive business
environments
--  Signed out-licensing agreement for CeaProve™
--  Introduced Ceapro's newest product, hydrolyzed oat peptides, for a major
personal hair care line
--  Signed a non-exclusive distribution agreement with South Korean based
East Hill Corporation for selected Asian territories.
--  Certain Ceapro products are now being evaluated for use by major Asian
cosmetic companies for inclusion in their formulations.
--  Settlement of litigation and payment related to the Saskatchewan
Government Growth Fund Ltd completed. No further financial exposure to
the Company.

"2009 was a year of transition and implementation of our new strategy which is focused on developing and selling selected high value active ingredients. Despite 2009 being a very difficult economic period for the personal care industry, we are proud to have generated higher revenues than in the previous year and to have significantly improved our income from operations by $1.45 million even as some major customers drastically reduced their inventories, especially in the fourth quarter" said Gilles Gagnon, Acting President & CEO. "Going forward, we will continue to further develop new products for our Active Ingredient business and expect to finalize licensing opportunities that have been presented to the Company in recognition of the strength of Ceapro's core extraction technology and in recognition of Ceapro's proven track-record of product commercialization. The sale of additional new extracts is expected to drive increases in revenues and enhance profitability in the future" he added.

FINANCIAL RESULTS FOR THE FULL YEAR ENDED DECEMBER 31, 2009

--  Total sales $4,370,000 compared to $4,228,000 in 2008, an increase of
3.3%.
--  Gross margin increased by $833,000 reflecting a percentage increase to
48% from 30% primarily due to the successful implementation of improved
operating procedures and better management of resources.
--  Net loss amounted to $69,000 or $0.00 per share compared to a net loss
of $3,599,000 or $0.08 per share for 2008, an improvement of $3,530,000.
This net loss of $69,000 approximates the loss related to the US
exchange rate.
--  General and administration expenses decreased by $265,000 as well as
sales and marketing and research & development costs which respectively
decreased by $201,000 and $314,000 compared to 2008.

The complete audited annual consolidated financial statements are available for review on SEDAR at http://sedar.com/Ceapro and on the Company's website at www.ceapro.com .

About Ceapro Inc.

Ceapro Inc. is a Canadian growth-stage biotechnology company. Primary business activities relate to the development and commercialization of active ingredients for personal care and cosmetic industries using proprietary technology and natural, renewable resources. To learn more about Ceapro, visit www.ceapro.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

CEAPRO INC.
Consolidated Statements of Net Loss and Comprehensive Loss and Deficit
Years ended December 31
2009         2008
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Revenue
Sales (note 11)                                 $ 4,370,070  $ 4,228,073
Cost of goods sold                                2,252,024    2,942,802
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Gross margin                                      2,118,046    1,285,271
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Expenses
General and administration                        1,424,344    1,688,978
Royalties                                           250,663      401,876
Sales and marketing                                 183,693      385,132
Amortization                                         44,842       34,955
Interest on long-term debt                           77,031       83,651
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1,980,573    2,594,592
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Income (loss) from operations                         137,473   (1,309,321)

Other income (expenses)
Research and product development                   (577,629)    (891,382)
Bioenergy Feasibility Study                               -       (5,868)
Other income (loss) (note 12)                       (55,493)      73,385
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Loss before SGGF legal fees                          (495,649)  (2,133,186)
SGGF legal fees (note 10a)                          426,300   (1,466,283)
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NET LOSS AND COMPREHENSIVE LOSS
FOR THE YEAR                                         (69,349)  (3,599,469)
Deficit, beginning of year                         (7,321,541)  (3,722,072)
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Deficit, end of year                             $ (7,390,890)$ (7,321,541)
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Net loss per common share:
Basic                                               $ (0.00)     $ (0.08)
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Diluted                                             $ (0.00)     $ (0.08)
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Weighted average number of common
shares outstanding                                49,577,953   47,050,063
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See accompanying notes