Innovotech Reports First Quarter 2013 Financial Results

Innovotech Inc. (TSX VENTURE:IOT), an innovator in the field of biofilm product
development, today announced its audited financial and operational results for
the quarter ended March 31, 2013.


Highlights:



--  Company reduced expenses while advancing InnovoSIL(TM) development. 
--  InnovoSIL(TM)-1 successfully deposited as an antimicrobial coating on
    various materials used in medical devices such as catheters. 
--  Product gross margin percentages improved during the quarter 



The big news during the quarter has come from Innovotech's Research and
Development efforts. "Tests show InnovoSIL(TM)-1 performs significantly better
than the present two leading wound care products in killing bacteria typically
present in wounds" says Ken Boutilier, Innovotech's CEO. "Not only that,
InnovoSIL(TM)-1 has other crucial properties, such as stability and ease of
manufacture that make it an ideal candidate for both wound dressings and for
coatings of medical devices. The Company has signed material transfer agreements
with a number of major medical device companies with interests in applying
InnovoSIL(TM)-1 to wound dressings, urinary catheters, vascular catheters and
endotracheal (breathing) tubes."


Financial Summary



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($)                  Three-month period ended      Three-month period ended 
                               March 31, 2013                March 31, 2012 
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Revenues                              163,427                       172,995 
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G&A                                   229,395                       297,986 
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R&D                                   209,099                       237,718 
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Net loss                             (354,398)                     (394,993)
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Share Price                              0.28                          0.62 
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Cash position                         164,836                       271,031 
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Revenues

In the three-month period ended March 31, 2013, total revenues were $163,427
(2012 - 172,995; 2011 - $296,936). This included contract research revenue of
$112,262 (2012 - $139,657; 2011 - $261,509) and product sales of $51,165 (2012 -
$33,338; 2011 - $35,427). Revenue from contract research was affected by the
delay of a major project into the second quarter.


General and Administrative Expense

In the three-month period ended March 31, 2013, general and administrative
expense, including stock based compensation expense and allocated amortization
expense, was $229,395 (2012 - 297,986). The reduction of G&A expenses is a
result of various cost saving measures implemented over the past 12 months.


Research and Development

In the three-month period ended March 31, 2013, research and development expense
was $209,099 (2012 - $237,718). The cost was partially offset by various grants
of $38,738 (2012 - $154,782).


Liquidity and Capital Resources

At March 31, 2013, the Company had $164,836 in cash compared to $447,469 at
December 31, 2012. Continued investment in development in the Company's lead
products have contributed to a decrease in cash reserves over the past year.
Cash generated by contract research activity in the quarter was lower than
expected also contributing to a decrease in cash reserves.


Innovotech's first quarter 2013 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 an innovator 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 a variety of market segments; the MBEC Assay(TM), InnovoSIL(TM),
bioFILM PA(TM) InnovoSCEPT(TM)-Human and InnovoSCEPT(TM)- Veterinary tests. The
MBEC Assay(TM) is a high throughput biofilm growth device that was recently
approved as an ASTM International standard. InnovoSIL(TM) is a family of
silver-based antimicrobials promising superior performance for medical device
coatings, bioFILM PA(TM) and InnovoSCEPT(TM)-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(TM)-Veterinary tests are designed to determine the most effective
antibiotic treatment for chronic infections in both large and small animals.
Agress(R) and AgreGuard(TM) are unique, environmentally friendly seed treatments
and plant sprays designed to protect crops against both bacterial and fungal
infections. Agress(R) is entering the regulatory approval stage.


Connect with us:

Website: www.innovotech.ca

Blog: www.cf-test.ca

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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Innovotech Inc.
Ken Boutilier
President and CEO
[phone] ext. 221
[phone] (FAX)
[e-mail]
www.innovotech.ca