Advitech announces highlights and results for the second quarter



    TSX VENTURE EXCHANGE: AVI

    QUEBEC CITY, Aug. 26 /CNW Telbec/ - Advitech Inc. ("Advitech" or the
"Company") (TSX Venture Exchange: AVI) announces today highlights and
financial results of its second quarter ended June 30, 2008.

    
    FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2008
    ------------------------------------------------

    Three-month period ended June 30, 2008:

    - Revenues amounted to $181,478 compared to $273,803 for the same quarter
      in 2007, a decrease of 33.7% explained by the fact that during the
      second quarter of 2007, distribution agreements were signed with two
      major clients, and their first orders were placed during that quarter.
      The Dermylex(R) sales volume is usually higher in the last two quarters
      of each year because of the particular sales cycle of psoriasis
      products.

    - The net loss amounted to $534,520, compared to a net loss of $509,399
      for the quarter ended June 30, 2007, an increase of 4.9%.

    Six-month period ended June 30, 2008:

    - Revenues amounted to $258,776 compared to $327,118 for the six-month
      period ended June 30, 2007, a decrease of 20.9% mainly due to the
      absence of royalties during the first semester of 2008, whereas in the
      corresponding period in 2007, a $50,000 non-recurring royalty was
      generated by a now discontinued Advitech product.

    - The net loss amounted to $977,440, compared to a net loss of $907,324
      for the corresponding period in 2007, an increase of 7.7%.

    "For 2008, we are still forecasting higher revenues than in 2007. We are
also considering new opportunities that could have a positive impact on sales
in 2008" commented Mr. Renaud Beauchesne, President and Chief Executive
Officer at Advitech.

    FINANCIAL POSITION
    ------------------

    - As at June 30, 2008, the Company had a cash position of $916,285,
      compared to $1,034,086 as at March 31, 2008, an $117,801 decrease
      resulting mainly from the operating activities during the second
      quarter of 2008.


                       Selected financial information

    -------------------------------------------------------------------------
    Income Statements           Three-month period        Six-month period
                                     ended June 30           ended June 30
                             ------------------------------------------------
                                  2008        2007        2008        2007
    -------------------------------------------------------------------------
    Total revenues            $181,478    $273,803    $258,776    $327,118
    -------------------------------------------------------------------------
    Net loss                 $(534,520)  $(509,399)  $(977,440)  $(907,324)
    -------------------------------------------------------------------------
    Net loss per share,
     basic and diluted         $(0.007)    $(0.007)    $(0.013)    $(0.014)
    -------------------------------------------------------------------------


                       Selected financial information

    -------------------------------------------------------------------------
    Balance Sheets                                       As at       As at
                                                          June    December
                                                            30,         31,
                                                          2008        2007
    -------------------------------------------------------------------------
    Cash and cash equivalents                         $916,285  $1,158,459
    -------------------------------------------------------------------------
    Other current assets                              $610,036    $902,944
    -------------------------------------------------------------------------
    Long-term assets                                  $240,348    $180,609
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Current liabilities                               $547,526    $422,629
    -------------------------------------------------------------------------
    Long-term liabilities                           $2,077,975  $1,710,064
    -------------------------------------------------------------------------
    Shareholders' equity                             $(858,832)   $109,319
    -------------------------------------------------------------------------


       The second quarter of 2008 financial statements as well as the
      management's discussion and analysis of results of operations and
        financial condition are available on the Company's website at
                              www.advitech.com.


    SECOND QUARTER OF 2008 HIGHLIGHTS
    ---------------------------------

    Sales and marketing:

    - Since the beginning of 2008, the Company has expanded the products
      portfolio with more than ten new products, to improve the current sales
      cycle and increase sales. These products will generate sales during the
      last semester of 2008.

    - The Company signed a new distribution agreement with Vital Science for
      Canada and other countries. Vital Science is a major player in cosmetic
      field in Canada.

    - Dermylex(R) had a strong retail growth in France and Taiwan. In Taiwan,
      Dermylex(R) received a formal approval to be sold directly in Taiwanese
      hospitals. We expect this new approval to generate new commercial
      developments in South-East Asia.

    - Additional distribution agreements are in discussion for the U.S. and
      strategic European countries such as Germany, Italy, Spain, the United
      Kingdom and Russia.

    Research and Development:

    - A second clinical study confirmed the efficacy of Dermylex(R) in the
      treatment of mild to moderate psoriasis at a daily dosage of 800 mg.
      The results were published in June in a peer-reviewed alternative
      medicine journal.

    - An open-label study on eczema has demonstrated the potential efficacy
      of a new product developed from the XP-828L platform. The Company is
      now evaluating commercial opportunities for this new product, targeting
      a broader market than for psoriasis.

    - Dr Charles Doillon made a presentation in June at the 3rd Congress of
      the World Union of Wound Healing Societies in Toronto. This was the
      first scientific introduction of our IM wound healing platform, and it
      generated a lot of interest. Advitech is currently evaluating strategic
      partnerships with several pharmaceutical partners for this new
      application and technical platform.

    - The Company will update on its development results on October 1st,
      2008, at BioContact conference, which will be held in Québec.

    Human resources:

    - Dr Christina Juneau has resigned her position with Advitech to pursue a
      new career opportunity with a contract research organization in
      Montréal. Dr Juneau led the Company's research on psoriasis and eczema,
      bringing significant results and publications in these fields. She has
      agreed to be part of our Scientific Advisory Committee and will
      therefore maintain close ties with the Company.

    - Advitech announces the appointment of Dr Réjean Drouin as Vice-
      President of Research and Development, replacing Dr Juneau. Dr Drouin,
      who was working as Director of Research and Development with Advitech
      for the past three years, has made a significant contribution to the
      Company's R&D program.

    "I would like to thank Christina for her dedication, her efforts and her
professionalism. She has been able to successfully meet a lot of challenges,
and with her presence to the Company Scientific Advisory Committee, we will
continue to benefit from her expertise. I wish her a lot of success in her new
position" indicated Renaud Beauchesne, President and Chief Executive Officer
at Advitech.

    STOCK OPTIONS GRANT
    -------------------

    Advitech announces that pursuant to the Company's stock option plan, it
has granted a total of 50,000 stock options to Christian Labbé, Finance
Director at Advitech. These options have an exercise price of $0.15 per share
and may be exercised during a period of five (5) years. This grant of options
is subject to appropriate regulatory approvals.

    ABOUT ADVITECH INC. www.advitech.com:

    Advitech is a health sciences and technology company with a mission to
discover and commercialize proprietary and evidence-based natural health
products. Effective and safe, these products play a role in the prevention of
immune-mediated inflammatory disorders, such as psoriasis and inflammatory
bowel disease. Advitech produces Dermylex(R) for the treatment of
mild-to-moderate psoriasis.
    Advitech has drawn up a research program to develop new applications
related to wound healing. This development is derived from both its XP-828L
and IM technological platforms.

    ABOUT DERMYLEX(R) www.dermylex.com:

    Dermylex(R), developed by Advitech, is an oral natural health product
formulated to improve mild-to-moderate psoriasis symptoms. Two clinical
trials, including a 112-day, multi-center, double-blind, placebo-controlled
trial with 84 patients, clinically proved the efficacy and safety of
Dermylex(R) for that type of psoriasis. Dermylex(R) is currently available in
Canada and the U.S. (as BioDerm, Dermalyx(R)), as well as in France and
Belgium (as Psopax(R)).


       This press release contains forward-looking statements, which reflect
        the Company's current expectations regarding future events. The
     forward-looking statements involve risks and uncertainties. Actual
     results could differ materially from those projected herein. The TSX
     Venture Exchange does not accept responsibility for the adequacy or
                          accuracy of this release.

    
    %SEDAR: 00021006EF




For further information:

For further information: Renaud Beauchesne, MBA, President and Chief
Executive Officer, Advitech Inc., (418) 686-7498, ext. 228, info@advitech.com;
Serge Comeau, Investor's relations, Advitech Inc., (514) 862-4160,
s.comeau@advitech.com

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ADVITECH INC.

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