Epicore BioNetworks Inc. Reports Strong Results in 2009 Quarter Two



    for the period ended 31 December 2008

    CALGARY, Feb. 27 /CNW/ - Epicore BioNetworks Inc. experienced strong
business growth in quarter two fiscal 2009 despite challenging market
conditions and severe turmoil in world economies. Revenue increased by 16%
compared to prior year quarter two and set a new quarter two record. Some
highlights were:

    
    -   Increased net income to $0.30 million compared to $0.11 in prior year
        quarter two.
    -   Achieved net income as a percentage of sales revenue of 13%.
    -   Grew basic and diluted earnings from $0.003 per share in prior year
        to $0.005.
    -   Grew sales revenues by $0.13 million (16%) beating a prior year
        quarter two record.
    -   Increased total stockholders equity to $2.3 million from $2.2 million
        in the last quarter and $1.6 million in prior year quarter two.
    -   Cash balance of $0.6 million higher than prior year quarter two of
        $0.3 million.
    

    Aquaculture remains the Company's strongest market sector, producing 96%
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 and the Epicore product range offers strong value
to a growing customer base. Quarter two saw a significant increase in Epicore
agricultural sales and revenue from this growing sector.
    Latin America was the largest sales region in the period. Distributors in
Mexico and India made major contributions to fiscal 2009 quarter two results.
    Epicore gross profit increased the same percentage as sales increased
because gross margin was maintained. Operating expenses were 1% lower than
prior year. Revenue growth resulted in a higher provision for income taxes,
which were partially decreased by our accumulated net operating losses. The
Company generated a net income of $0.12 million, an 82% increase over the
prior year quarter two.

    
                               (US$)    2008        2007
                                        ----        ----

    Sales                             910,000     782,000
    Gross Profit                      554,000     477,000
    Expenses                          389,000     391,000
    Other Income (Expense)             (9,000)     (8,000)
    Income Taxes                       36,000      12,000
    Net Income                        120,000      66,000
    

    Cash at the end of December was $0.6 million, an increase of $0.2 million
compared to prior year but a decrease of $0.1 million from fiscal 2008 quarter
one; this was mainly due to working capital increases. With these funds,
expected sales revenue growth and continued control of operating costs,
management expects there will be sufficient cash to meet the fiscal year's
financial requirements. Additional funds will go toward expansion of
aquaculture and environmental remediation marketing efforts and the continuing
investigation of new strategies for enhancing shareholder value.
    The Company is pleased to announce that Jean C. Messier, who retired from
the board of directors in January, has agreed to provide consulting services
to Epicore. Mr. Messier has extensive experience in sales and marketing, which
during his tenure as a director proved valuable to the Company.
    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, such as the one about having sufficient
cash to meet the fiscal year's financial requirements. This statement is based
on the assumption that the Company's sales will continue as expected. 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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