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INVITRO INTERNATIONAL REPORTS FOURTH QUARTER PROFITABLE, BEFORE INVENTORY WRITE OFF

Sales & Cash Increase 4th Consecutive Quarter
Irvine, CA January 25, 1999 — Invitro International (Bulletin Board Symbol “INVI”) announced revenues of $153,000 for its fourth fiscal quarter ended September 30, 1998; this is a 30% increase over the comparable quarter in the prior fiscal year. Also during INVI’s 1998 final quarter, the Company recorded an operating profit of $22,000 before a charge to write off excess Guardian DNA inventory of $258,000. The $22,000 operating profit is the first such quarterly result after more than five (5) years of losses and follows previously unannounced third quarter 1998 operating losses of just $11,000. The small third quarter operating loss was also before an extraordinary charge of $76,500 for stock compensation to McKenna, Delaney & Sullivan, Invitro International’s newly hired Advertising & Public Relations partner. President and Chief Executive Officer, W. Richard Ulmer, said “It has been a challenge to get INVI to a fiscally responsible place, and we know that our job is far from finished. In recent months we have seen an increase in our core business of non-animal testing, perhaps as a result of increased U.S. Department of Transportation regulatory enforcement; the sales increase may also be related to the 1999 change in United Kingdom regulations where no more permits will be issued for testing new cosmetic products using animals. In addition, we continue to be pleased with the performances of our new agents and partner laboratories in Asia, Europe and the United States.”

For full year 1998, INVI’s sales revenues totaled $560,000, off 22% vs. 1997; losses were $375,804 for the latest year, $(0.03) per share vs. $(0.08) in 1997 and $(0.15) in 1996. It is noteworthy that in the full year 1998, only $41,200 of the INVI losses were from operations before the aforementioned non-recurring charges. When viewed in this manner, 1998 losses were 92% lower than 1997 levels with none in the fourth quarter. In addition, the Company’s cash levels increased slightly in each of the four fiscal quarters.

With regard to previously announced INVI intentions to merge with Miragen, financing plans continue to move forward. The focus of these plans is on the development of an automated piece of equipment for Miragen’s patented antibody profiling identification technology. Of note, is that memoranda of understanding are pending for the purchase and use of several such machines in centers of influence throughout the world. The INVI merger plans, however, remain subject to various conditions such as obtaining additional financing in sufficient amounts to sustain future operation of both companies from sources willing to approve the proposed merger, INVI stockholder approval, etal.



CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS


  Three months ended
September 30
       
Twelve months ended September 30
 

1998


1997


1998


1997

Revenues

152,518


115,903


560,091


720,017

Costs and expenses

388,885


317,840


981,994


1,941,588

Loss from operations

(236,367)


(201,937)


(421,903)


(1,221,571)

Other income (loss)

41,429


683


46,099


32,801

Net loss

(194,938)


(201,254)


(375,804)


(1,188,770)

Loss per common share

(0.01)


(0.01)


(0.03)


(0.08)

Weighted average common
shares outstanding

14,169,968


14,023,300


14,169,968


14,023,300

 



CONDENSED
CONSOLIDATED BALANCE SHEET

     

Sept 30, 1998


Sept 30, 1997

 

(AUDITED)

 
Cash, cash equivalents
and marketable securities

59,960


54,000

Other current assets    

268,571


584,000

Total current assets    

328,531


638,000

Noncurrent assets    

154,479


255,000

Total assets    

483,010


893,000

Current liabilities    

54,856


169,000

Shareholders’ equity    

428,154


724,000

Total liabilities and equity
   

483,010


893,000

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