MICROBIX REPORTS 104% RISE IN SALES AND PROFITABILITY.

Microbix Biosystems Inc. (TSE:MBX), Toronto, has reported a 104% rise in sales for the first half of fiscal 2001 and earnings of $0.01 per share, its growth continuing in each of the last two quarters as "the company has begun to increase its market share as a provider of key biological intermediates used in the manufacture of a growing line of products."

President and CEO William J. Gastle said his firm expects continued strength through fiscal 2001 in this specialty biologicals business.

Sales for the first half of fiscal 2001 rose to $1,616,218 up 104% from the same period last year. Profit in the first half before tax was $192,007, "a robust improvement over the same period in 2000" ($344,036 loss), Gastle reported.

"Despite continued investment in urokinase, our lead generic biotherapeutic product, we achieved a record 12% return on sales driven by strong expense controls in general and overhead expenses, and a strong product mix that kept gross margins high," he said.

Improved financial performance is providing the company with the increased flexibility it needs to shape a suitable distribution agreement for its urokinase product line. The company is engaged in negotiations leading to the financing of the product line and has signed non-binding term sheets for a total of $8.5 million that cover facility improvements and production equipment for the final manufacturing plant, which has now been located. The money will complement the contribution of a distribution partner.

Microbix has been enjoying increasing interest in its new biopharmaceutical biosafety product serving the biotechnology industry called "Process Select." It's a viral validation service that allows customers to measure whether or not their purification processes are achieving required levels of performance at an early stage. Delays in evaluating process performance can force drug development programs back to the drawing board, increasing time to market and project development costs.

The firm expects "significant growth in its core virology business arising from this sector," Mr. Gastle commented.

Microbix specializes in developing and manufacturing tissue culture-derived biologicals for an emerging world market for biotherapeutic drugs and animal health products. It is a key producer of biological intermediates for building diagnostic products and tools used in biotechnology research.

The company has expertise in advanced culture, purification and process validation technologies. Its objective during the next decade is to become a major force in what is expected to be a $3 billion generic biotherapeutics market in North America.

For more information, call 416/234-1624 or 800/794-6694. or visit http://www.microbix.com