HALIFAX, Sept. 30 /PRNewswire-FirstCall/ -- MedMira Inc. ("MedMira") (TSX Venture: MIR, NASDAQ:MMIRF) the global market leader in rapid flow-through diagnostics, today announced its financial results for the three month and year end periods ending July 31, 2005. Product sales in the fourth quarter were $389 thousand, compared to $578 thousand in the same quarter last year. The net loss for the quarter was $2.0 million or $0.04 per share compared with $0.9 million or $0.03 per share in the same period last year. For the year ended July 31, 2005 product sales were $2.7 million, up from $2.4 million for the same period last year, an increase of 9%. The net loss of the year was $5.9 million or $0.14 per share compared to $4.0 million or $0.10 per share for the same period last year. "Although this past year for MedMira has not met sales and revenue expectations, the Company is well positioned for 2006, in terms of key fundamentals. Increased marketing opportunities in China, new active registrations in twenty-four countries, pending European approval of our HIV test, and participation in international tenders, allows the Company to be confident that the important positioning role that was undertaken in 2005, will be effective in generating growth in 2006", said Stephen Sham, chairman and CEO of MedMira. Overall gross margin for the year was 41%, compared to 53% last year. The gross margin level is in line with management's expectations for the mix of markets that we are operating in. Operating expenses for the fourth quarter were $2.1 million compared to $1.3 million in the same period last year. For the year ended July 31, 2005 operating expenses were $7.0 million compared to $5.3 million last year. These increases are mainly driven by increased interest costs related to the issuance of convertible debentures in 2004 and 2005 and increased marketing activities in various markets, especially China. At July 31, 2005 the Company had total assets of $1.4 million compared with $1.7 million in total assets at July 31, 2004. Subsequent to year end the Company has undertaken several financing activities including raising approximately $1.1 million through the issuance of promissory notes, the establishment of a $2.0 million operating line of credit, and entering into a Subscription Agreement for the purchase of $10 million in equity over a five year period. Financial Information The following is a brief summary of financial information expressed in thousands of Canadian dollars except per share amounts: For the For the For the For the three months three months twelve months twelve months ended ended ended ended July 31, July 31, July 31, July 31, 2005 2004 2005 2004 (000's) (unaudited) (unaudited) (unaudited) (unaudited) ----------- ----------- ----------- ----------- Product Sales $ 389 $ 578 $ 2,661 $ 2,439 Cost of goods sold 352 237 1,574 1,154 ---------- ---------- ---------- ---------- Gross margin 37 341 1,087 1,285 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Operating expenses 2,054 1,280 6,983 5,319 ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Loss for the period $ (2,017) $ (939) $ (5,895) $ (3,993) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- Loss per share $ (0.04) $ (0.03) $ (0.14) $ (0.10) ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- As at As at July 31, 2005 July 31, 2004 (unaudited) Cash and cash equivalents $ 29 $ - ---------- ---------- ---------- ---------- Total assets $ 1,428 $ 1,694 ---------- ---------- ---------- ---------- Shareholders deficiency $ (9,805) $ (5,874) ---------- ---------- ---------- ---------- About MedMira MedMira is the leading global manufacturer and marketer of in vitro flow-though rapid diagnostic tests for the clinical laboratory market. MedMira's tests provide reliable, rapid diagnosis in just 3 minutes for the detection of human antibodies in human serum, plasma or whole blood for diseases such as HIV. The United States FDA and the SFDA in the People's Republic of China have approved MedMira's Reveal(TM) G2 and MiraWell(R) Rapid HIV Tests, respectively. MedMira's Reveal(TM) G2 and MiraWell(R) rapid HIV tests are currently used in clinical laboratories and hospitals where professional counseling and patient treatment are immediately available. The MiraCare(TM) Rapid HIV Antibody Test is available over-the-counter (OTC) in pharmacies throughout the Hong Kong and Macao Special Administrative Regions, in P.R. China. MedMira delivers rapid diagnostic solutions to healthcare communities around the globe. Its corporate offices and manufacturing facilities are located in Halifax, Nova Scotia, Canada with a representative office in Beijing, China. This news release contains forward-looking statements, which involve risk and uncertainties and reflect the company's current expectation regarding future events. Actual events could materially differ from those projected herein and depend on a number of factors including, but not limited to, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the company quarterly filings. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement. For more information visit MedMira's website at http://www.medmira.com/. DATASOURCE: MedMira Inc. CONTACT: Dr. James Smith, Investor Relations, Tel: (902) 450-1588, E-mail:

Copyright