OPMEDIC GROUP Inc. announces its financial results for the fourth quarter and
for the year ended August 31, 2009 and declares a dividend on common shares


    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/
    
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<p><location>MONTREAL</location>, <chron>Nov. 16</chron> /CNW Telbec/ - OPMEDIC GROUP Inc. ("OPMEDIC GROUP") (TSX: "OMG"), a healthcare-related company in fertility, laboratories and surgeries providing services and facilities to patients and surgeons, is pleased to announce its financial results for the fourth quarter and for the year ended <chron>August 31, 2009</chron>.</p>
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    HIGHLIGHTS FOR THE YEAR ENDED AUGUST 31, 2009:

    - Revenue up by 16%. Revenue for the year ended August 31, 2009 totalled
      $13.405 million compared to $11.507 million in 2008.
    - Gross profit up by 16%. Gross profit for the year ended August 31, 2009
      totalled $7.228 million compared to $6.228 million in 2008.
    - Net earnings up by 31%. Net earnings and net earnings per share for the
      year ended August 31, 2009 were respectively $1.683 million and $0.11
      compared to $1.288 million and $0.08 in 2008.
    
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<p>Revenues</p>
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<p>Revenue for the year ended <chron>August 31, 2009</chron> totalled <money>$13.405 million</money>, up 16% or <money>$1.898 million</money> from <money>$11.507 million</money> in 2008. Cytology operations generated additional revenue of <money>$0.496 million</money> following the acquisition of Laboratoire Cyto-Stat in <chron>April 2008</chron>, thereby contributing to twelve months of operations to results in fiscal 2009 compared to five months in fiscal 2008. Prenatal screening contributed an increase of <money>$0.508 million</money> in revenue, of which over 70% was due to a higher volume of business. The Company's expansion projects continued to push up revenue. Surgeries in the OPMEDIC division posted additional revenue of <money>$0.482 million</money>, partially as a result of the opening of the Laval endoscopy rooms in <chron>January 2008</chron>, which were in operation for four more months in fiscal 2009 than in fiscal 2008, and because of the opening of the new <location>Quebec</location> City endoscopy room in <chron>June 2008</chron>, which was in operation for nine more months in fiscal 2009 than in fiscal 2008. Finally, although the volume of fertility operations was down slightly, revenue for fiscal 2009 was up by <money>$0.224 million</money> because of the price increase in 2008.</p>
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<p>Cost of Services</p>
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<p>The cost of services for the year ended <chron>August 31, 2009</chron> rose by 17% or <money>$0.898 million to $6.177 million</money> from <money>$5.279 million</money> in the previous year. With the new cytology operations, additional expenses of <money>$0.392 million</money> were incurred for salaries, professional fees and supplies, while the new endoscopic services provided required an additional outlay of <money>$0.341 million</money>, mainly to cover the cost of the new premises, salaries and supplies. Lastly, an increase in prenatal screening activities pushed up costs of salaries and supplies by <money>$0.113 million</money>.</p>
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<p>Gross Profit</p>
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<p>Gross profit totalled <money>$7.228 million</money> for the fiscal year ended <chron>August 31, 2009</chron>, up 16% or <money>$1 million</money> from <money>$6.228 million</money> a year earlier. The improved fertility treatments unit results, primarily in cytology and prenatal screening, enhanced gross profit by <money>$0.627 million</money>, while the increase in business in the surgical and endoscopic services and facilities segment added <money>$0.373 million</money> to gross profit.</p>
<p>Gross profit in relation to revenue remained unchanged from the previous year at 54%.</p>
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<p>General and Administrative Expenses</p>
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<p>General and administrative expenses totalled <money>$3.429 million</money> for the year ended <chron>August 31, 2009</chron>, up <money>$0.320 million</money> from <money>$3.109 million</money> in 2008. Additional expenses for rent and salaries resulting from the new cytology and endoscopy operations totalled <money>$0.126 million</money>. There were also professional fees of <money>$0.107 million</money> for outsourcing in the area of internal controls, investor relations, laboratory accreditation, IT support and recruitment.</p>
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<p>Net Earnings</p>
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<p>Net earnings and net earnings per share for the year ended <chron>August 31, 2009</chron> were respectively <money>$1.683 million</money> and <money>$0.11</money>, compared to <money>$1.288 million</money> and <money>$0.08</money>, respectively, in 2008.</p>
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    HIGHLIGHTS FOR THE FOURTH QUARTER:

    - Revenue up by 9%. Revenue for the fourth quarter totalled $3.391
      million compared to $3.106 million for the same period in 2008.
    - Gross profit up by 12%. Gross profit for the quarter ended August 31,
      2009 totalled $1.842 million compared to $1.652 million in 2008.
    - Net earnings up by 5%. Net earnings and net earnings per share for the
      quarter ended August 31, 2009 were respectively $0.375 million and
      $0.02 compared to $0.357 million and $0.02 in 2008.
    
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<p/>
<p>Revenues</p>
<p/>
<p>Revenue for the quarter ended <chron>August 31, 2009</chron> totalled <money>$3.391 million</money>, up 9% or <money>$0.285 million</money> from <money>$3.106 million</money> in the previous year.</p>
<p>The fertility division generated additional revenue of <money>$0.078 million</money> primarily because of higher prices. The OPMEDIC division, dedicated to one-day surgeries, increased its revenue from surgery and the rental of operating rooms by <money>$0.092 million</money>, while prenatal screening tests and ultrasounds were up by <money>$0.086 million</money> as a result of increased business.</p>
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<p>Gross Profit</p>
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<p>Gross profit for the quarter ended <chron>August 31, 2009</chron> rose by 12% or <money>$0.190 million</money> from <money>$1.652 million</money> in 2008 to <money>$1.842 million</money> in 2009. Fertility division results contributed <money>$0.126 million</money> to gross profit, while surgical and endoscopic services and facilities contributed <money>$0.064 million</money>.</p>
<p>Gross profit in relation to revenue for the fourth quarter was 54% in 2009, versus 53% in 2008.</p>
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<p>General and Administrative Expenses</p>
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<p>General and administrative expenses for the quarter ended <chron>August 31, 2009</chron> totalled <money>$0.940 million</money>, up <money>$0.197 million</money> from <money>$0.743 million</money> in 2008.</p>
<p>The increase was due to professional fees of <money>$0.051 million</money> under outsourced contracts for internal controls, investor relations, laboratory accreditation, IT support and recruitment. In addition, there was an increase in staff to handle the higher volume of business for extra expenses of <money>$0.095 million</money>.</p>
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<p>Net Earnings</p>
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<p>Net earnings and net earnings per share for the fourth quarter were respectively <money>$0.375 million</money> and <money>$0.02</money>, as opposed to <money>$0.357 million</money> and <money>$0.02</money> in 2008.</p>
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<p>DECLARATION OF DIVIDEND ON COMMON SHARES</p>
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<p>The Company's Board of Directors has declared a cash dividend of <money>$0.01</money> per share payable on <chron>November 30, 2009</chron> to shareholders of record at the close of business on <chron>November 25, 2009</chron>. Future dividends are subject to the discretion of the Board of Directors.</p>
<p>Detailed financial results can be accessed on the OPMEDIC GROUP web site at <a href="http://www.opmedicgroup.com">www.opmedicgroup.com</a>.</p>
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<p>About OPMEDIC GROUP</p>
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<p>OPMEDIC GROUP is a company incorporated under the laws of the Province of <location>Quebec</location> which provides healthcare-related services including surgical and endoscopic facilities and services to patients and surgeons (with its OPMEDIC division), fertility treatments, medical imaging, laboratory services and diagnostic procedures (with its PROCREA Cliniques division) and sperm banking services (with its PROCREA Cryopreservation Centre subsidiary). OPMEDIC GROUP's Common Shares trade on the <location>Toronto</location> Stock Exchange under the symbol "OMG".</p>
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<p>This news release does not constitute an offer to sell or to solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful. This news release contains certain forward-looking statements that reflect the current views and/or expectations of OPMEDIC GROUP with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly.</p>
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    The Content of this press release has not been approved by nor submitted
    to the TSX which assumes no liability therefore.
    

For further information: For further information: Jean-Marc LACHANCE, Vice President Finance and Chief Financial Officer, (514) 345-8535, x 2260, jmlachance@opmedicgroup.com

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