Microbix Biosystems Inc. Reports Very Strong First Quarter Results

TORONTO, February 14, 2012 -- Microbix Biosystems Inc. (TSX: MBX), a biotechnology company commercializing virology and novel biotechnologies, today reported robust financial results for the first quarter of fiscal 2012. For the quarter ended December 31, 2011, Microbix reported revenues of $1,474, 511 an 80% increase from $812,694 for the same quarter in 2011 reflecting a return to normal customer demand compared to the one-time decline in sales for the same period in 2011.

Cost of Sales was $832,723 for the quarter compared to $429,080 in 2011 due to higher sales. Operating Expenses were $1,159,533 million compared to $1,117,974 million for the same period in 2011, or a 3.7% increase due to increased financing costs. Expenses for pipeline development continued to decline as the Company advances these assets towards commercialization with its partners. These results have contributed to a lower operating loss for the quarter of $517,745 compared to $734,360 for the same quarter last year.

Subsequent to the First Quarter, a letter of intent was signed with Zydus Cadila, an innovative global pharmaceutical company that discovers, develops, manufactures and markets a broad range of healthcare products, to collaborate on the return of Urokinase to the market. Under terms of the arrangement, all costs associated with the re-launch of urokinase will be covered by Zydus. After product launch, Microbix will also receive a guaranteed margin on all product shipped to Zydus, plus a royalty on all sales made by Zydus.

William J. Gastle, Chief Executive Officer, said “I am very pleased that Urokinase will be re- established as an option for clinicians for treatment of blood clots and related conditions. This is a credit to the safety and efficacy of the molecule, and Microbix’ untiring efforts to restore a much valued therapy to the medical community. For Microbix and Zydus, significant financial benefits will accrue in a much shorter time frame than typically the case with the launch of completely new drugs or new biologics.”

Gastle added, “We continue to strive to build shareholder value across all business units by maximizing manufacturing efficiency and sales growth, strengthening our intellectual property assets, and building pipeline product partnerships to implement those assets.”

Please visit www.sedar.com for recent Microbix Biosystems, Inc. filings on its pipeline products and financial information.

About Microbix Biosystems

Microbix Biosystems Inc. specializes in the development of the most advanced vaccine production technology and markets virology and biological products worldwide. Microbix, in partnership with the Hunan government in China, is planning to build Asia’s largest and most advanced vaccine facility. In addition, The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Microbix supplies customers in the U.S., Europe, and Asia. Established in 1988, Microbix is headquartered in Toronto.

Disclaimer

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 development projects, operations in Foreign jurisdictions, risks associated with engineering and construction generally, risks associated with production including control over costs, quality, quantity and timeliness of delivery of products, foreign currency and exchange rate risk, and risks of raising capital on acceptable terms or at all. These forward-looking statements represent the Companies' judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.

For further information:

Visit www.microbix.com or contact: William J. Gastle, CEO, (416) 234-1624 x 230; or James Long, CFO, (416) 234-1624 x 265.

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