MFIC Corporation Announces Shipment of a Highly Advanced (State of the Art) Microfluidizer(R) Processor Production System.

NEWTON, Mass. -- MFIC Corporation (OTCBB: MFIC) announced today that in the third quarter of 2005 it completed shipment of an M-7250-20 production level Microfluidizer system with the most advanced functionality, controls and features incorporated to date in any system delivered by the Company. The system, priced at several hundred thousand dollars, was purchased by the Korean Institute of Industrial Technology ("KITECH"). KITECH is one of the most innovative and prestigious industrial research institutes in Asia. KITECH states that as part of its mission it "not only focuses on strengthening the competitiveness of conventional technology but also on developing the next generation's strategic technology along with practical know-how." KITECH has a strong focus on biotechnology development and operates a Bio Industrial Technology Commercialization Center. This high end Microfluidizer(R) processor system is in compliance with the FDA's current good manufacturing practice with automation (cGAMP) and includes features such as clean in place (CIP), steam in place (SIP) for sterilization, extensive real-time operating and monitoring controls and data acquisition and storage capabilities. All controls and data are accessible through a stand-alone touch screen panel controller and interface (see attached pictures). MFIC acted as the integrator of the real-time process displays, program logic control (PLC) and instrumentation, data acquisition and automation systems (SCADA), and other components in the system.

Robert P. Bruno, President & COO, stated "We believe that within KITECH there are and will continue to be significant scaleup opportunities for biotech processes using our Microfluidizer processor equipment. Further, both the knowledge and skills acquired in design and construction of this advanced system has allowed us to secure other equipment orders and to quote on other prospective sales of our systems."

Irwin Gruverman, CEO of MFIC Corporation stated, "The KITECH system will serve as a display of our capability to adapt our basic equipment design and function to the high level needs of a biopharma development plant. We were pleased to have the opportunity to meet the challenges imposed by KITECH's leading edge specifications and to place our system in such a high visibility location. KITECH's role as a contract research organization (CRO) should expose our equipment to many of the companies who work with KITECH and may need our equipment to scale up products and processes developed on the KITECH system.

In designing, building and testing this first of a kind system we incurred significant additional development costs and expenses that impacted profit on the sale of the system. We believe that the demonstrational and developmental use of the KITECH system will provide significant future benefits to the Company."

FORWARD LOOKING STATEMENT:

Management believes that this release contains forward-looking statements that are subject to certain risks and uncertainties including statements relating to the Company's plan to attain and/or increase operating profitability and/or to achieve net profitability. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties that could cause actual results achieved by the Company to differ materially from those described in the forward-looking statements. The Company cautions investors that there can be no assurance that the actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors, including but not limited to the following risks and uncertainties: (i) whether the performance advantages of the Company's Microfluidizer(R) materials processing equipment or that a commercial market for the equipment will continue to develop, (ii) whether the performance advantages of the Company's MMR nanoparticle production systems will be realized commercially, (iii) whether the Company will be able to increase its market penetration and market share, (iv) whether the timing of orders will significantly affect quarterly revenues and resulting net income results for particular quarters which may cause increased volatility in the Company's stock price, and (v) whether the Company will have access to sufficient working capital through continued and improving cash flow from sales, proceeds from its private placement equity offering, and ongoing borrowing availability, the latter being subject to the Company's ability to comply with the covenants and terms of its loan agreement with its senior lender.

MFIC CORPORATION

MFIC Corporation, through its Microfluidics Division, provides patented and proprietary high performance Microfluidizer(R) materials processing equipment to the biotechnology, pharmaceutical, chemical, cosmetics/personal care, and food industries. MFIC applies its 20 years of high pressure processing experience to produce the most uniform and smallest liquid and suspended solid structures available, and has provided manufacturing systems for nanoparticle products for more than 15 years. The Company is a leader in advanced materials processing equipment for laboratory, pilot scale and manufacturing applications, offering innovative technology and comprehensive solutions for nanoparticles and other materials processing and production. More than 3,000 systems are in use and afford significant competitive and economic advantages to MFIC equipment customers.