Innovotech Reports First Quarter 2012 Financial Results

Innovotech Inc. (TSX VENTURE:IOT) announced its audited financial and
operational results for the quarter ended March 31, 2012.


Highlights:



--  Innovotech receives initial purchase orders for Human and Veterinary
    InnovoSCEPT products 
--  Encouraging interim results in one of the two blinded study groups from
    the clinical trial at the Hospital for Sick Children 
--  Launched aggressive marketing campaign to promote Innovotech biofilm
    research expertise



"Initial purchase orders received in the quarter for the InnovoSCEPT
susceptibility test product line from Spectrum Labs, for our veterinary tests,
and Doctor's Data, for our human tests, are a promising start for revenue growth
" said Ken Boutilier, CEO of Innovotech. "The Company also received interim
results from the ongoing clinical trial at the Hospital for Sick Children
showing a greater reduction in bacteria in the lungs in one of the two patient
groups, although to maintain the integrity of the trial it could not be revealed
if the beneficial group was the one using Innovotech's product bioFILM PA.
Reduction of bacteria in the lungs means that the treatment is more effective
and will likely be administered for a shorter time, meaning faster recovery for
a patient and reduced cost for the medical system."


The Company has launched an aggressive marketing program to promote its biofilm
expertise, including; adding to the contract research marketing team, hosting a
Biofilm Workshop for the US Food and Drug Administration and industry clients in
Washington DC, and increasing participation in industry conferences.


Subsequent to the quarter end the Company is actively engaged in a private
placement financing to strengthen its cash position. Commitments have already
been received for over $500,000.


Financial Summary



----------------------------------------------------------------------------
                                  Three-month period     Three-month period 
($)                             ended March 31, 2012   ended March 31, 2011 
----------------------------------------------------------------------------
Revenues                                     172,995                296,936 
----------------------------------------------------------------------------
G&A                                          297,986                281,535 
----------------------------------------------------------------------------
R&D                                          237,718                277,588 
----------------------------------------------------------------------------
Net loss                                    (394,993)              (308,562)
----------------------------------------------------------------------------
Share Price                                     0.62                   0.75 
----------------------------------------------------------------------------
Cash position                                271,031                412,934 
----------------------------------------------------------------------------



Revenues 

In the three-month period ended March 31, 2012, total revenues were $172,995
(2011 - $296,936; 2010 - $454,370). This included contract research revenue of
$139,657 (2011 - $261,509; 2010 - $375,315) and product sales of $33,338 (2011 -
$35,427; 2010 - $19,055). Recent delays in regulatory approvals have slowed
product development for major Innovotech's clients within this sector resulting
in a reduction in Innovotech's contract research revenue. 


General and Administrative Expense 

In the three-month period ended March 31, 2012, general and administrative
expense, including stock based compensation expense and allocated amortization
expense, was $297,986 (2011 - $281,535). The increase was mainly attributable to
increased building and overhead expenses and stock options compensation expense.


Research and Development 

In the three-month period ended March 31, 2012, research and development expense
was $237,718 (2011 - $279,693). The cost was partially offset by various grants
of $154,782 (2011 - $112,023)


Liquidity and Capital Resources

At March 31, 2012, the Company had $271,031 in cash compared to $459,275 at
December 31, 2011. Continued investment in development and marketing of two of
the Company's lead products have contributed to a decrease in cash reserves over
the past year. These expenditures were partially offset by cash inflows from
product sales, contract research revenue and various grants. 


Innovotech's first quarter 2011 Financial Statements and Management's Discussion
and Analysis will be filed on The System for Electronic Document Analysis and
Retrieval (SEDAR) at www.sedar.com 


About Innovotech Inc.

Innovotech Inc. is a pioneer in the field of biofilm product development,
focused on providing innovative and practical solutions to medical, agricultural
and industrial problems caused by microbial biofilms. Biofilms are organized
communities of microorganisms that exist in virtually every natural environment
and are responsible for a host of diseases in human health, animal health and
agriculture. There are few products or regulatory standards, aside from those of
Innovotech, designed specifically for biofilm-forming organisms. 


Innovotech has a broad range of products that address the issue of biofilms
within a number of different industries, including commercially available
products in three market segments; the MBEC Assay(TM), bioFILM PA(TM),
InnovoSCEPT-Human and InnovoSCEPT-Veterinary tests. The MBEC Assay(TM) is a high
throughput biofilm growth device that was recently approved as an ASTM
International standard. bioFILM PA(TM) and InnovoSCEPT-Human are the first
diagnostic tests to assist physicians in the selection of the most effective
antibiotic treatment for patients with biofilm-based chronic infections, while
the InnovoSCEPT veterinary tests are designed to determine the most effective
antibiotic treatment for chronic infections in both large and small animals. 


Innovotech also has two products in advanced stages of development; Agress(R) is
a unique, environmentally friendly seed treatment and plant spray designed to
protect crops against both bacterial and fungal infections and AgreGuard(TM) is
a unique antimicrobial for coating medical devices such as catheter.


This document may contain forward-looking statements that are predictive in
nature and subject to risks and uncertainties that cannot be predicted or
quantified; consequently, actual results may differ materially from past results
and those expressed or implied by any forward-looking statements. Factors that
could cause or contribute to such risks or uncertainties include, but are not
limited to: the regulatory environment including the difficulty of predicting
regulatory outcomes; changes in the value of the Canadian dollar; the Company's
reliance on a small number of customers including government organizations;
fluctuations in operating results; government policies or actions; progress and
cost of clinical trials; reliance on key strategic relationships; uncertainty
related to intellectual property protection and potential costs associated with
its defense; the Company's exposure to lawsuits and other matters beyond the
control of management. Should known or unknown risks or uncertainties
materialize, or should management's assumptions prove inaccurate, actual results
could vary materially from those anticipated. The Company undertakes no
obligation to publicly make or update any forward-looking statements, except as
required by applicable law.
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