International Canine Genetics reports strong 3rd quarter/nine months revenue gains.

MALVERN, Pa.--(BUSINESS WIRE)--April 25, 1995--International Canine Genetics Inc. (OTC, Bulletin Board:IGCI) today reported results for the third quarter and nine months ended March 31, 1995.

Third quarter revenues rose 30% to $393,919 from $302,130 for the same period last year, the sixth consecutive quarter of revenue gains of at least 30%. Revenues for the nine months climbed 41% to $1,087,709 from $773,738 for the first nine months of fiscal 1994.

"Gross profit for the first nine months of fiscal 1995 grew at an even faster rate than revenues. Our performance reflects increased sales of breeding products and services and the PennHIP(R) canine hip dysplasia program," explained Paul A. Rosinack, president and chief executive officer.

The company had a net loss of $463,016 or 26 cents per share for the quarter vs. a net loss of $524,470 or 28 cents per share for the same quarter of fiscal 1994. During the first nine months of fiscal 1995, the company had a net loss of $1,291,752 or 71 cents per share compared with a net loss of $1,304,708 or 71 cents per share for the same period last year. "The decrease in the third quarter net loss reflects the company's continued revenue and gross profit increases and a slowing of the rate of growth in operating expenses," Rosinack added.

"During the third quarter, we trained 64 additional veterinarians in the PennHIP technology, bringing to 400 the total number of veterinarians trained in the procedure, 244 of whom have been certified by the company. Also in the quarter, the company introduced and began selling Status-LH(TM) its new in-clinic diagnostic test to measure canine lutenizing hormone (LH) for ovulation timing. Developed and manufactured by ICG, this product provides veterinarians with a one-step test procedure to identify rapidly and accurately the actual hormone event that triggers ovulation in the dog. Status-LH provides dog breeders and their veterinarians with a comprehensive line of canine ovulation timing products which include the Status-LH Canine Lutenizing Hormone Assay, Status-Pro Canine Progesterone Assay and ICG's Laboratory Testing Service for Canine Reproductive Hormones," Rosinack noted.

The company also announced the S.R. One, Limited, a major shareholder, has agreed to advance ICG $200,000 under the terms of a demand note bearing interest at 11%. "In order to continue to pursue our goals and our sales, marketing and product development activities, operating capital will be required in addition to that currently available. While management continues to explore other financing options, no assurances can be given that such funds will be available or that funds will be available on terms which are satisfactory or advantageous to the company or its shareholders," Rosinack explained.

International Canine Genetics develops, manufactures and markets canine reproduction products and services, PennHIP, a test for canine hip dysplasia, nutritional supplements and a line of coat and skin care products to breeders and owners or purebred dogs and their veterinarians. -0-

                      International Canine Genetics Inc.
                       Financial Highlights (Unaudited)

             For the Three Months Ended   For the Nine Months Ended
                3/31/95      3/31/94        3/31/95     3/31/94

Net revenues  $ 393,919     $ 302,130     $ 1,087,709  $ 773,738
Cost of
 revenues       209,436       171,208         590,132    448,021
Gross profit    184,483       130,922         497,577    325,717
Operating
 expenses:
Research and
 development
 expenditures   140,606        99,646         413,477    282,225
Selling, general
 and
 administrative 415,899       460,429       1,161,549  1,134,455
Advertising and
 promotional
 expenses        96,218        98,764         219,316    254,173
                652,723       658,839       1,794,342  1,670,853
Loss from
 operations    (468,240)     (527,917)     (1,296,765) (1,345,136)
Interest income   5,320        16,609          26,795      59,712
Interest expense (12,453)      (9,611)        (35,161)    (18,899)
Other income
 (expense), net  12,357        (3,551)         13,379        (385)
Net loss       (463,016)     (524,470)     (1,291,752) (1,304,708)
Net loss per
 share of
 common stock     ($.26)        ($.28)          ($.71)      ($.71)
Shares of common
 stock outstanding
 (weighted
 average)      1,811,040    1,844,974       1,811,040   1,844,974

Balance Sheets         3/31/95          6/30/94
                      (Unaudited)

Current assets        $ 430,627       $ 1,742,806
Property, plant and
 equipment, net         246,119           207,493
Other assets            127,702           124,281
Total assets            804,448         2,074,580
Current liabilities     298,344           323,431
Other liabilities       702,548           655,840
Stockholders' equity
 (deficit)             (196,444)        1,095,309
Total liabilities
 and stockholders'
 equity                 804,448         2,074,580

CONTACT: International Canine Genetics Inc.

Paul A. Rosinack or John R. Bauer, 610/640-1244

or

Porter Le Vay & Rose Inc.

Hal Le Vay, 212/564-4700