Immunotec Announces Positive First-Quarter Results and the Return to Profitability

VAUDREUIL-DORION, QUEBEC--(Marketwire - March 29, 2010) -

 - Active Distributors Up 8% to 27,000 - Earnings from continued operations to $343 thousand 

Immunotec Inc. (TSX VENTURE: IMM), a Canadian based company and a leader in the wellness industry (the “Company”), today reported positive results with First-quarter 2010, earnings from continuing operation profit of $343 thousand compared with a loss of $201 thousand in the prior-year quarter.

For the quarter ended January 31, 2010, EBITDA before losses from discontinued operations totalled $737 thousand or 7% of total income, compared to $4 thousand or 0% of total income for Fiscal 2009.

“A return to profitability after a challenging 2009, is a demonstration that our reorganized business model is starting to create shareholder value”, said James A. Northrop, President and CEO of Immunotec Inc. “Our message on Health Improvement and Income Opportunity seems well received by our distributors to establish us as a first class multi- level marketing company”.

Fiscal 2010 Financial Results Highlights:

 - Network Sales reached $8.9M compared to $9.2M for the same period in 2009, a decline of $0.3M or a 4% decrease attributed to foreign exchange rates stemming from a stronger Canadian dollar in 2010. The relative contribution in sales last year resulting from this variation and for the same period is approximately $0.6 M. The average Canadian dollar value used during the period was 1.0571 during fiscal 2010 compared to 1.2264 for the same period of 2009. - Other Revenues that include international distribution revenues, freight and shipping, charge backs and educational material reached $1.6M in 2010 an increase of 11% compared to $1.5M in 2009. - Margin before expenses, as a percentage of net sales improved to 32% compared to 29% for year 2009. This improvement, despite the lower revenues, is mostly attributed to certain amendments made on the sales incentive program launch in 2009. Network Sales incentives is the largest segment of variable expenses of the Company. As a percentage of Network sales, the incentive program represented an average of 48% of Network revenues, an improvement from the 53% level in 2009. - Administration, Marketing, Sales, Quality Control and Research & Development expenses were $2.6M representing 25% of total revenues and improvement versus the 29% ratio for the previous year. - Net earnings (loss) and comprehensive income (loss), including losses from discontinued operations, achieved $209 thousand or $0.003 per share, compared to a loss of $201 thousand or ($0.003) per share for 2009. 

About Immunotec Inc.

Immunotec is a Network Marketing Company involved in the direct selling of scientifically validated natural health products and dietary supplements. The Company offers a lucrative business opportunity to its independent distributors. This business model provides Immunotec’s network of people with an opportunity to earn a steady and recurring income, directly based on their level of involvement and performance. Individual distributors build their business by conveying product information and selling product to customers and by building teams of distributors to expand geographic penetration and market coverage to larger populations of customers.

Headquartered with manufacturing facilities near Montreal, Canada, the Company also subcontracts certain distribution logistics and capacity to support its activities in the United States, Europe and The Caribbean.

The Company files its consolidated financial statements, its management and discussion analysis report, its press releases and such other required documents on the SEDAR database at www.sedar.com and on the Company’s website at www.immunotec.com. The common shares of the Company are listed on the TSX Venture Exchange under the ticker symbol IMM.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties and other important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the heading Risks and Uncertainties in Immunotec’s most recent Management’s Discussion and Analysis, which can be found at www.sedar.com. Consequently, actual results may differ materially from the anticipated results expressed in these forward-looking statements.

 Immunotec Inc. Interim Consolidated Balance Sheet (Unaudited) As at January As at October 31, 2010 31, 2009 $ $ --------------------------------------------------------------------------- --------------------------------------------------------------------------- ASSETS Current Cash 2,344,831 2,262,821 Accounts receivable 584,798 201,841 Income taxes receivable 35,742 70,306 Inventories 3,450,779 3,941,847 Prepaid expenses 540,867 436,251 Future income taxes 82,115 90,133 --------------------------------------------------------------------------- 7,039,132 7,003,199 Long-term Property, plant and equipment 5,954,856 6,068,313 Intangible assets 2,375,673 2,505,937 Goodwill 499,541 499,541 Future income taxes 1,894,528 1,969,403 Other assets (note 3) 656,397 699,839 --------------------------------------------------------------------------- 18,420,127 18,746,232 --------------------------------------------------------------------------- --------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable 2,176,760 2,629,247 Accrued liabilities 1,666,131 1,881,390 Customer deposits 391,294 308,557 --------------------------------------------------------------------------- 4,234,185 4,819,194 Shareholders’ Equity (Deficit) Share capital (note 4) 3,465,548 3,465,548 Other equity - Stock options (note 5) 1,819,696 1,770,093 Contributed surplus 11,337,796 11,337,796 Deficit (2,437,098) (2,646,399) --------------------------------------------------------------------------- 14,185,942 13,927,038 --------------------------------------------------------------------------- 18,420,127 18,746,232 --------------------------------------------------------------------------- --------------------------------------------------------------------------- 

 Immunotec Inc. Interim Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) Number of Other equity common Share -Stock shares capital options $ $ --------------------------------------- Balance - October 31, 2008 69,994,300 3,465,548 1,414,885 --------------------------------------- Net loss - - - Stock-based compensation (note 5) - - 122,316 --------------------------------------- Balance - January 31, 2009 69,994,300 3,465,548 1,537,201 --------------------------------------- Balance - October 31, 2009 69,994,300 3,465,548 1,770,093 --------------------------------------- Net profit - - - Stock-based compensation (note 5) - - 49,603 --------------------------------------- Balance - January 31, 2010 69,994,300 3,465,548 1,819,696 --------------------------------------- Immunotec Inc. Interim Consolidated Statements of Changes in Shareholders’ Equity (Unaudited) (Deficit) Contributed Retained surplus earnings Total $ $ $ -------------------------------------- Balance - October 31, 2008 11,332,143 1,898,637 18,111,213 -------------------------------------- Net loss - (201,205) (201,205) Stock-based compensation (note 5) - - 122,316 -------------------------------------- Balance - January 31, 2009 11,332,143 1,697,432 18,032,324 -------------------------------------- Balance - October 31, 2009 11,337,796 (2,646,399) 13,927,038 -------------------------------------- Net profit - 209,301 209,301 Stock-based compensation (note 5) - - 49,603 -------------------------------------- Balance - January 31, 2010 11,337,796 (2,437,098) 14,185,942 -------------------------------------- Immunotec Inc. Interim Consolidated Statement of Earnings (Loss) and Comprehensive Income (Unaudited) Quarter ended January 31 2010 2009 $ $ --------------------------------------------------------------------------- --------------------------------------------------------------------------- REVENUES Network sales 8,865,644 9,227,007 Other revenue 1,615,426 1,464,502 --------------------------------------------------------------------------- 10,481,070 10,691,509 VARIABLE COSTS Cost of goods sold (excluding amortization) 2,022,251 1,729,462 Sales incentives - Network 4,248,329 4,868,649 Other variable costs 900,572 956,889 --------------------------------------------------------------------------- Margin before expenses 3,309,918 3,136,509 --------------------------------------------------------------------------- Expenses Administrative 1,459,915 1,593,937 Marketing and Selling 860,602 1,292,308 Quality and Development costs 251,903 246,579 Amortization 287,029 263,828 Financial charges (revenues) - (21,513) --------------------------------------------------------------------------- 2,859,449 3,375,139 --------------------------------------------------------------------------- Earnings (Loss) from continuing operations before income taxes 450,469 (238,630) Income taxes (Recovery) Current 24,986 59,452 Future 82,893 (96,877) --------------------------------------------------------------------------- Earnings (Loss) from continued operations 342,590 (201,205) Loss from discontinued operations (133,289) - --------------------------------------------------------------------------- Net earnings (loss) and comprehensive income (loss) 209,301 (201,205) --------------------------------------------------------------------------- --------------------------------------------------------------------------- Basic and diluted net earnings (loss) per share Continuing operations 0.005 (0.003) Discontinued operations (0.002) - --------------------------------------------------------------------------- Total basic and diluted net earnings (loss) per share 0.003 (0.003) --------------------------------------------------------------------------- --------------------------------------------------------------------------- Weighted average number of common shares outstanding during the period Basic and diluted 69,994,300 69,994,300 

 Immunotec Inc. Consolidated Statement of Cash Flows (Unaudited) 2010 2009 Quarter ended January 31 $ $ --------------------------------------------------------------------------- --------------------------------------------------------------------------- Operating activities Net earnings (loss) 209,301 (201,205) Loss from discontinued operations (133,289) - --------------------------------------------------------------------------- Earnings (Loss) from continuing operations 342,590 (201,205) Add (deduct) non cash items: --------------------------------------------- Amortization of property, plant and equipment 141,146 132,408 Amortization of intangible assets 145,883 131,420 Other receivable 43,442 - Future income taxes 82,893 (96,877) Stock-based compensation 49,603 122,316 --------------------------------------------------------------------------- Cash received prior to working capital variation 805,557 88,062 Net change in non-cash working capital (546,950) (356,999) --------------------------------------------------------------------------- Cash (used) received in operating activities 258,607 (268,937) --------------------------------------------------------------------------- --------------------------------------------------------------------------- Investing activities Additions to property, plant and equipment (27,689) (35,305) Additions to intangible assets (15,619) (127,174) Research and development tax credits - (13,272) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash used in investing activities (43,308) (175,751) --------------------------------------------------------------------------- --------------------------------------------------------------------------- Net increase (decrease) in cash from continuing activities 215,299 (444,688) Net (decrease) in cash from discontinued activities Operating activities (133,289) - --------------------------------------------------------------------------- Net increase (decrease) in cash during the quarter 82,010 (444,688) Cash at the beginning of the quarter 2,262,821 6,138,454 --------------------------------------------------------------------------- Cash at the end of the quarter 2,344,831 5,693,766 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Supplemental information Income taxes (recovered) paid during the quarter (7,983) 33,939 

“The TSX Venture does not accept responsibility for the adequacy or accuracy of this release.”