Epicore BioNetworks Inc. Record Results in Fiscal Year 2007



    for the period ended 30 June 2007

    CALGARY, Oct. 26 /CNW/ - With net income increasing by over 300%, Epicore
recorded a positive net income for the fourth year in a row. Despite
challenging market conditions in terms of low shrimp prices and in some
markets the prevalence of virulent diseases, Epicore's business grew
substantially in fiscal 2007 with sales growth in almost every market sector.
Revenues increased by over $1 million (56%) with increased sales in the
Americas and Asia. Epicore sales exceeded the $3 million mark for the first
time. Operational expenses increased by 25% but relative to sales improved
from 62% of sales to 50% of sales.
    Aquaculture remains the Company's most important market sector, with 97%
of total sales. Epicore biotechnology and specialty feed technology offer
answers to problems of pollution, disease and poor nutrition in aquaculture
operations around the world.
    Market conditions appear to have bottomed-out and are recovering slowly
after a weak year in 2007. However, Epicore has successfully adapted its
product offering to meet changing market situations. The new application
method for our EPICIN biological aquaculture treatment continues to provide
producers with increased yields in low stocking density farms. To facilitate
application to feed, two new formulations of EPICIN were introduced. New lower
cost liquid hatchery feeds, sold under the name EPILITE that were developed in
response to depressed post-larval shrimp prices sold well in price sensitive
markets.
    Distributors in Indonesia, Mexico, India, Thailand, Brazil and Venezuela
made major contributions to fiscal 2007 results, confirming the value of our
mixed marketing approach. Most distributors posted strong year-on-year sales
growth. The movement from Penaeus monodon to Penaeus vannamei culture in Asia
opened doors at major producers for Epicore's Latin American experience with
products for P. vannamei. The shift in species made Indonesia our second
largest market in 2007. Latin America remained our largest revenue generator
as sales grew 26% in fiscal 2007.
    Epicore gross profit increased by $0.7 million, whereas operating
expenses increased only by $0.3 million in fiscal 2007. Revenue growth
resulted in higher income taxes, which were partially decreased by our
accumulated net operating losses. The Company generated a net income of
$0.5 million versus $0.1 million in prior year. Basic net income per share was
$0.019 versus prior year of $0.005.

    
                                                 (US$)    2007        2006
                                                          ----        ----
    Sales                                              3,131,000   2,011,000
    Gross Profit                                       2,113,000   1,377,000
    Expenses                                           1,557,000   1,249,000
    Other Income (Expense)                               (27,000)      6,000
    Income Taxes                                          72,000      25,000
    Net Income (Loss)                                    457,000     108,000
    

    Cash at the end of June was $0.2 million, a decrease of $0.2 million from
prior year mainly due to investment in the Company's New Jersey site. With
these funds, expected sales revenue growth and continued relatively low
operating costs, management expects there will be sufficient cash to meet the
fiscal year's financial requirements, to fund expansion of aquaculture and
environmental remediation marketing efforts and to investigate new strategies
for enhancing shareholder value.

    The financial statements of the Company have been prepared in accordance
with Canadian GAAP. Epicore BioNetworks Inc. is a public corporation with a
registered office in Calgary, Alberta, Canada and with shares listed on the
TSX Venture Exchange (symbol EBN). (The TSX Venture Exchange has not reviewed
and does not accept responsibility for the adequacy or accuracy of this
release.)

    This press release contains forward-looking statements that involve
significant risks and uncertainties. The actual results, performance or
achievements of the Company might differ materially from the results,
performance or achievements of the Company expressed or implied by such
forward-looking statements. Such forward-looking statements include, without
limitation, those regarding the development plans of the Company and the
expected timing and results of such development. We can provide no assurance
that such development will proceed as currently anticipated or that the
expected timing or results of such development will be realized. We are
subject to various risks, including the uncertainties of product development,
markets for our products and regulatory review, our need for additional
capital to fund our operations, our reliance on collaborative partners, our
history of losses, and other risks inherent in the biotechnology industry.





For further information:

For further information: Mr. William P. Long (Chief Executive Officer),
USA, Tel: (609) 267-9118


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