Accelr8 Technology Corporation Reports Fiscal 2004 Results.

DENVER -- Accelr8 Technology Corporation (AMEX:AXK) today reported a "loss from continuing operations before income tax benefit" of ($1,698,822) for the fiscal year ended July 31, 2004, compared to a "loss from continuing operations before income tax benefit" of ($1,776,606) for the previous fiscal year.

On July 30, 2004, Accelr8 completed the sale of its software migration business, and the financial statements for the year ended July 30, 2004, reflect the sale of the software migration business as "discontinued operations." For the twelve months ended July 31, 2004, Accelr8 reported a net loss of ($909,412), or ($0.17) per share, from continuing operations on revenues of $118,614 (from continuing operations). In the prior fiscal year, Accelr8 reported a net loss of ($1,375,827), or ($0.18) per share, from continuing operations on revenues of $52,794 (from continuing operations).

According to David Howson, Accelr8's president, during the current fiscal year the company plans to complete critical milestones in its BACcelr8r(TM) development program and also expand its share of the microarray market, where it will continue to pursue licensing opportunities and emphasize custom coatings.

Howson noted that the BACcelr8r program targets bacterial infectious diseases in which the delay between symptom presentation and lab results substantially increases the risk of mortality and increases the total costs of care. "Based on feasibility tests conducted by Accelr8," said Howson, "we believe that the BACcelr8r will be able to provide complete bacterial analysis and accurately identify antibiotic resistance in 8 hours or less. Clinical microbiology has seen few fundamental changes in analytical strategies within the last two decades, and today's standard methods still require a long initial culturing period of 1.5 to 5 days before results become available. In contrast, the BACcelr8r will directly and rapidly analyze the bacteria from a specimen without initial culturing. Although there can be no assurance that we will be successful with the BACcelr8r, we are very optimistic about our chances for success in light of our feasibility studies, and in the continued absence of new technology to deal with this urgent problem.

"We believe that the extremely low assay noise and strong target binding provided by OptiChem(R) surface chemistry, the speed of YoDx(TM) electrophoretic concentration, and the high sensitivity of QuanDx(TM) particle light scattering will ensure the success of the BACcelr8r. By the end of the fiscal year," concluded Howson, "we expect the BACcelr8r program to have established operating requirements for each of the key technical components, and we plan to hand off the results from the science team to product development engineers. We expect in 2005 to rapidly build momentum as we prepare to launch the research version of this exciting new platform in fiscal year 2006 and prepare for our planned regulatory submission (FDA) in fiscal 2007."

About Accelr8 Technology:

Accelr8 Technology Corporation (www.accelr8.com) is a developer of innovative materials and instrumentation for advanced bio-analytical applications in basic research, drug discovery, molecular diagnostics, and pathogen detection for bio-defense and food safety. The company sells OptArray(TM) microarraying slides and OptiPlate(TM) multiplexed arrayable microtiter plates. It is also developing advanced detection instrumentation based on its QuanDx(TM) and YoDx(TM) array processing and detection technologies.

Safe-Harbor Statement:

Certain statements in this news release, including but not limited to statements regarding the ongoing development and anticipated benefits of the BACcelr8r, may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements regarding future prospects and developments are based upon current expectations and involve certain risks and uncertainties that could cause actual results and developments to differ materially from the forward-looking statement, including those detailed in the company's filings with the Securities and Exchange Commission. Accelr8 Technology Corporation disclaims any intent or obligation to update these forward-looking statements.