Microbix Biosystems Inc. First Quarter Results Reflect Continued Substantial Investments In Its Proprietary Products

TORONTO, Feb. 14 /PRNewswire-FirstCall/ - Microbix Biosystems Inc. today announced a net loss of $482,127 for the first quarter ended December 31, 2006, compared to a net loss of $106,052 in the same period a year earlier.

Overall revenue declined 41% in the latest quarter as a result of a 29% decline in the revenue from virology products due to the timing of orders from our key customers and, as previously disclosed, the loss of revenue from Research & Development contracts due to the amendment to our agreement with Genpharm Inc.

Quarter Ended December 31 2006 2005 ------------------------------------------------------------------------- Revenue $ 672,484 $ 1,136,809 ------------------------------------------------------------------------- Net Profit (loss) $ (482,127) $ (106,052) ------------------------------------------------------------------------- Net Profit (loss) Per Share $ (0.01) $ 0.00 ------------------------------------------------------------------------- Cash flow $ (301,667) $ 7,119 -------------------------------------------------------------------------

"Our financial results for the first quarter of fiscal 2007 reflect the substantial investments we continue to make in developing our product pipeline. As we indicated last year, this is an aggressive and focused strategy designed to boost shareholder value over the longer term, knowing that there will be short-term impacts on net profit and cash flow," said Microbix Chairman and CEO William J. Gastle.

"We remain committed to this program, and it is beginning to pay off."

During the three months ended Dec. 31, 2006, the Company made progress in all areas of product development - oncology, reproductive technology, and vaccine production.

Oncology

Microbix and Angiogen LLC are collaborating in the development of a cancer therapy that combines urokinase with a second drug. This drug combination, which works by cutting off the blood supply to solid tumours and thereby destroying them, has already shown success in patients. Because both of the drugs in the combination are already FDA-approved for other indications and are known to be safe, the partners are hopeful that this program will be able to move relatively quickly to market.

The two companies are currently seeking financing for Phase I and II trials, and several interested parties are now engaged in due diligence. This financing is expected to be in place by the end of the year, and a formal Phase I trial in the treatment of colorectal cancer should be completed in 2008.

Semen Sexing Technology (SST(TM))

The first year of a three-year development program has been completed. New bio-reagents have been created and are now under testing. The next significant milestones will be met in 2007.

Vaccine Technology

The Company has filed for a U.S. patent, and expects this review to be concluded in 2007. Microbix continues to discuss licensing opportunities with potential partners.

Other highlights

Also during the first quarter, the Company raised $500,000 in new financing, and a realignment of the senior executive team was completed.

Microbix specializes in developing proprietary 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 risk associated with SST such as failure to develop and commercialize, non-adoption in the artificial insemination industry resistance to the royalty business model for commercialization and implementation; risks associated with operation and maintenance of the urokinase facility; risks associated with commercializing the Vaccine Technology; and risks associated with margins due to appreciation of Canadian dollar, among others. 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.

Microbix Biosystems Inc.

CONTACT: visit www.microbix.com or contact: William J. Gastle, ChiefExecutive Officer, Microbix Biosystems Inc., (416) 234-1624 x230