SQI Diagnostics Reports First Quarter 2009 Financial Results

    TORONTO, Feb. 24 /CNW/ - SQI Diagnostics Inc. (TSX-V: SQD), a medical
systems automation company focused on evolving laboratory-based biomarker
testing, today announced its financial and operational results for the first
quarter ended December 31, 2008.


    -   Submitted 510(k) Pre-Market clearance submission to the U.S. Food and
        Drug Administration (FDA) for the SQiDworks(TM) Platform and
        QuantiSpot RA (Rheumatoid Arthritis) kit

    -   Submitted its application and received a Health Canada license for
        its SQiDworks(TM) Platform and QuantiSpot RA kit

    -   Subsequent to quarter end, received authorization to CE Mark its
        QuantiSpot RA consumable

    -   During the period ending December 31, 2008 and subsequent to the
        period end, completed a non-brokered private placement in two
        tranches for total gross proceeds of CDN$4,664,375

    "During our first quarter, we delivered on several key clinical
milestones and strengthened our financial position," said Andrew Morris, CFO
of SQI Diagnostics. "We are going to build on these accomplishments going
forward by expediting our commercialization efforts in Canada and the European
Union, while continuing to work with the FDA to receive its clearance to sell
our SQiDworks(TM) Platform and QuantiSpot RA test kit in the United States."

    Financial Results

    For the quarter ending December 31, 2008, SQI had a net loss $1,467,452
or $0.07 per share, compared to the quarter ending December 31, 2007 of
$1,013,922 or $0.05 per share. The increased loss for the quarter ending
December 31, 2008 was primarily related to increases in wage and wage-related
expenses and consulting expenses.
    Research and Development expenses increased in the quarter ending
December 31, 2008 to $815,152 compared to $698,660 during the quarter ending
December 31, 2007. The difference was related primarily to an increase in R&D
salaries resulting from an increase in staffing from 23 to 28 full-time R&D
employees from December 2007 to 2008.
    Corporate expenses, which include administrative salaries and related
expenses; general and administrative expenses; advertising and promotion
expenses; travel expenses; interest expenses and professional and consulting
fees increased by $83,800 to $241,027 for the quarter ending December 31, 2008
compared to $157,195 for the quarter ending December 31, 2007. The major
contributors to the increases between the periods was currency-related
exchange loss timing differences, interest expenses related to the SR&ED
receivable loan and expenses resulting from corporate re-branding and web
design and re-launch.
    At December 31, 2008, current assets were $6,042,946 compared to
$4,362,230 at September 30, 2008. Working capital as at December 31, 2008 was
$4,929,995 compared to $3,244,418 at September 30, 2008.
    Subsequent to the year end, the Company completed a non-brokered private
placement resulting in gross proceeds of $1,664,375 through the issuance of
1,331,500 common shares at $1.25 per common share.
    Management believes that the cash on hand at December 31, 2008, combined
with that raised subsequent to the year end, will be sufficient to fund
Company operations to the middle of 2010. The successful commercial launch and
generation of revenue in the 2009 fiscal year would extend that period.
    Detailed financial statements and the MD&A are available at

    About SQI Diagnostics

    SQI Diagnostics is a medical systems company that develops proprietary
technology in multiplexing, miniaturization and automation. SQI provides
laboratories the ability to simultaneously analyze multiple biomarkers,
deliver accurate and quantitative patient results in less time, significantly
reduce labor, and increase profits...All in One Drop. Please visit
www.sqidiagnostics.com for more information.

    Certain information in this press release is based on beliefs and
assumptions of the Company's senior management and information currently
available to it that may constitute forward-looking information within the
meaning of securities laws. Such statements reflect the current views of the
Company with respect to future events and are subject to certain risks and
uncertainties. Actual results, events, and performance may differ materially.
Readers are cautioned not to place undue reliance on these forward-looking

    This release was prepared by management of the Company who takes full
    responsibility for its contents. The TSX Venture Exchange has not
    reviewed and does not accept responsibility for the adequacy or accuracy
    of this news release.

For further information:

For further information: Chief Financial Officer, Andrew Morris, (416)
674-9500 ext. 229, amorris@sqidiagnostics.com; Media and Investor Relations,
Adam Peeler, (416) 815-0700 ext. 225, apeeler@equicomgroup.com

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