Neptune Technologies Reports Record Fiscal 2008 Fourth Quarter and Year End Results

    -- Company provides revenue guidance and strategic plan 2009/ 2010 --

    LAVAL, QC, Aug. 28 /CNW Telbec/ - Neptune Technologies & Bioressources
Inc. ("Neptune") (NASDAQ.NEPT - TSX.V.NTB) today reported its financial
results for the fourth quarter and year ended May 31, 2008. The Company
achieved record revenues for the fourth quarter of fiscal year 2008 and has
achieved its sixth consecutive year of record revenues.

    Financial Highlight 2008

    - Revenues for the fiscal year ended May 31, 2008 totalled a record
      $10,264,000, a 26.3% increase compared to the fiscal year ended May 31,
      2007 with revenues of $8,126,000.
    - The Company increased its sales in all geographic areas during the
      fiscal year ended May 31, 2008, with the exception of Canada. Total
      North America sales grew by 6.34% to $6,749,000 and in the United
      States, sales increased by 15.1% to $5,765,000. Sales in Europe
      increased by 10.5% to $1,727,000 and sales in the Asia-Pacific region
      rose considerably by 727% to $1,788,000.
    - The Company substantially increased its productions, generating growth
      of 54% in sales volume, which is, however, not fully reflected in the
      revenue increase, due to the impact of the U.S. dollar devaluation on
      more than 82% of the Company's sales.
    - EBITDA(1) for fiscal year 2008, ended May 31, 2008 decreased to
      $1,020,000 compared to the previous fiscal year, ended May 31, 2007, of
      $1,504,000, mainly due to expenses related to the devaluation of the
      U.S. dollar, implementation of compliance with internal control
      regulations (52-109, Sarbanes-Oxley) and in an ERP(2) management
      software and quality assurance program.

    Neptune Strategic Plan 2009/ 2010

    In its 2009 and 2010 strategic plan, the Company plans to focus on
strengthening its operations, in order to be wellpositioned for its future
growth and expansion. The Company will take steps to further solidify its
supply and production and is progressing with plans to increase its production
capacity and improve productivity. In parallel, the Company is already in
negotiations with major suppliers and multinational industrial manufacturing
companies with international nutraceutical and pharmaceutical manufacturing
standards in order to meet actual and forthcoming demand for its products.
Neptune will seek to continue to penetrate into the nutraceutical market with
the support of its existing clients and it will seek potential new
distributors, and it intends to proceed with commercialization efforts to
penetrate the functional food market with Nestlé and Yoplait. The Company will
also partner with other multinational food companies for the development of
new functional food products for commercialization exploiting three
therapeutic applications (cardiovascular, inflammation, cognitive) within four
food categories (dairy, cereals/bars, juice/beverages, confectionary).
    On the R&D side, the Company continues to advance its nutraceutical and
pharmaceutical product opportunities and to prepare for commercialization upon
obtaining the required regulatory approvals. New patents to protect Neptune
products for several applications are currently being submitted, and Neptune
soon expects to receive European Novel Food approval to commercialize NKO(R)
as a dietary supplement and a functional food, opening new geographic
    With regards to pharmaceutical operations, the Company recently announced
the formation of its subsidiary Acasti Pharma Inc. ("Acasti Pharma") through
which it intends to further advance the pharmaceutical programs including an
over-the-counter drug, a prescription medical food and a prescription drug
with an initial focus on cardiovascular disease. The Company is preparing for
an investigation new drug application (IND) with the Food and Drug
Administration (FDA) in the United States and for a clinical trial application
(CTA) with Health Canada. In parallel, Neptune continues the development of
other pharmaceutical applications including neurodegenerative disease.
    The Company intends to strengthen its financial position in order to
effectively carry out its strategic plan. Neptune expects to raise up to
US$14.5 million in a debt financing arrangement comprised of convertible
debentures with a conversion floor price to provide for minimum dilution for
expected gross proceeds of US$4 million to US$8 million. Neptune warrants and
call options on the shares of Acasti Pharma, held by Neptune, are attached to
the debenture. In addition, a bank debt financing of US$6.5 million to
refinance Neptune long-term debt and to increase productivity and production
capacity is under negotiation.

    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States. The
securities have not been registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements.
Any public offering of securities to be made in the United States will be made
by means of a prospectus that may be obtained from the issuer and that will
contain detailed information about the company and management, as well as
financial statements.

    Financial Results 2008

    Revenues for the fourth quarter of fiscal year 2008 ended May 31, 2008
increased 80.4% to a fourth-quarter record $3,135,000 compared to $1,738,000
in the fourth quarter of the previous fiscal year, ended May 31, 2007. For the
fiscal year 2008, ended May 31, 2008 revenues increased 26.3% to a record
$10,264,000 compared to the previous fiscal year, ended May 31, 2007 of
    For the fiscal year 2008, ended May 31, 2008, EBITDA(1) decreased by
$484,000 to $1,020,000 compared to the previous fiscal year, ended May 31,
2007 of $1,504,000, mainly due to expenses related to the devaluation of the
U.S. dollar, implementation of compliance with internal control regulations
(52-109, Sarbanes-Oxley) and in an ERP(2) management software and quality
assurance program.
    Net loss for the three-month period, ended May 31, 2008 was $1,285,000 or
$0.035 per share, compared to a net loss of $1,488,000 or $0.041 per share,
for the three-month period ended May 31, 2007. For the fiscal year 2008, ended
May 31, 2008, net loss amounted to $4,785,000 or $0.130 per share, compared to
a net loss of $2,677,000 or $0.075 per share in the previous fiscal year.
    Excluding non-monetary items, stock option based compensation and
amortization, Neptune would have generated a profit of $303,000 for the fiscal
year ended May 31, 2008. Neptune's cash position and financial performance
provide for a self-sustainable business as an operational and innovative
biotechnology company. As of May 31, 2008, Neptune's cash and cash equivalents
totalled $2,712,000.

    Financial Outlook

    After the plant capacity and productivity increase, Neptune expects to
generate $18 million to $24 million in annual revenue driven by its existing
partners and its recently entered alliances with Schiff Nutrition, AZPA
International and Croda Health Care. The foregoing outlook is based upon
information currently available to management and is subject to change.
Neptune's actual results may differ materially from this projection.

    (1) Earnings before Interest, Taxes, Depreciation, and Amortization
    (2) Enterprise Resource Planning

    About Neptune

    Neptune researches and develops proprietary bioactive ingredients and
products for nutraceutical and pharmaceutical applications and is carrying out
clinical research to show the therapeutic benefits in various medical
indications. The Company patents and protects its innovations and continuously
expands its intellectual property portfolio. Neptune has already obtained many
regulatory approvals allowing commercialization of its products in various
geographic markets and has filed for and is expecting additional approvals.
Neptune continues to strongly support its strategic development plan to form
partnership with worldwide leaders in the nutraceutical industries. Neptune
signed agreements with Nestlé and Yoplait, worldwide leading food
manufacturers, and paved its entrance into the global functional food market.

    About Acasti Pharma

    Acasti Pharma is governed by the Board of Directors of Neptune. Its head
office is located at the same address as Neptune at 225 Promenade du
Centropolis, Suite 200, Laval, Québec, Canada H7T 3B3. Acasti Pharma's product
portfolio of proprietary novel long-chain omega-3 phospholipids are sourced
from sustainable abundant marine biomass including Antarctic krill (Euphausia
superba). Phospholipids are the major component of cell membranes and are
essential for all vital cell processes. They are one of the principal
constituents of High Density Lipoprotein (good cholesterol) and play, as such,
an important role in modulating cholesterol efflux. Acasti Pharma's
proprietary novel phospholipids carry and functionalize the polyunsaturated
omega-3 fatty acids EPA and DHA, which have been shown to have substantial
health benefits and which are stabilized by potent antioxidants. Acasti is
focusing initially on treatments for chronic cardiovascular conditions.

    Neither NASDAQ nor TSX Venture Exchange accepts responsibility for the
    adequacy or accuracy of this press release.

    Statements in this press release that are not statements of historical or
current fact constitute "forward-looking statements" within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities
laws. Such forward-looking statements involve known and unknown risks,
uncertainties, and other unknown factors that could cause the actual results
of the Company to be materially different from historical results or from any
future results expressed or implied by such forward-looking statements. In
particular, readers are cautioned that outlooks and projections of future
results presented in this press release should be considered uncertain and
forward-looking. In addition to statements which explicitly describe such
risks and uncertainties, readers are urged to consider statements labeled with
the terms "believes," "belief," "expects," "intends," "anticipates," "will,"
or "plans" to be uncertain and forward-looking. The forward-looking statements
contained herein are also subject generally to other risks and uncertainties
that are described from time to time in the Company's reports filed with the
Securities and Exchange Commission and the Canadian securities commissions.

For further information:

For further information: Neptune Technologies & Bioressources Inc. and
Acasti Pharma Inc.: Toni Rinow, Ph.D., MBA, Corporate Development & Investor
Relations, (450) 687-2262,;;
Source: Neptune Technologies & Bioressources Inc.

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Neptune Technologies and Bioressources Inc.

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